Rural Marketing, 3rd Edition by Pearson

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RURAL MARKETING

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COCA-COLA

Coca-Cola

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attracted rural consumers by halving the price of a 200-ml bottle to INR 5. INR 5 is a

psychological price point. A price greater than INR 5 means that a consumer has to break a INR 10

note. Once he has spent INR 7–8 on something, he ends up spending the entire 10 rupee note. At

the time, Coca-Cola claimed that the low price spurred sales, and that the real thought behind the

200-ml bottle was to get people in rural India used to this packaged beverage. When Coca-Cola

India came up with this concept, a price war erupted, as its rival PepsiCo matched the INR 5 price.

Both firms have since ...