Question
Most recently Coca-Cola has decided to enter the growing Indian market for energy drinks. The competition in this market is fierce with established firms including
Most recently Coca-Cola has decided to enter the growing Indian
market for energy drinks. The competition in this market is fierce
with established firms including Red Bull and Sobe. With its new brand
Burn, Coke initially targeted alternative distribution channels such as
pubs, bars, and gyms rather than large retail outlets such as
supermarkets. Comment on this strategy
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BaronDonkeyPerson675Answered17 seconds ago
Coca-Cola's strategy of targeting alternative distribution channels such as pubs, bars, and gyms rather than large retail outlets such as supermarkets is a sound one. The company is wise to focus on these smaller, more niche markets where it can better compete against the established firms. This strategy will allow Coca-Cola to build a strong presence in the Indian energy drink market and eventually expand into the larger retail outlets.
Explanation:
Coca-Cola's strategy of targeting alternative distribution channels such as pubs, bars, and gyms rather than large retail outlets such as supermarkets is a sound one. The company is wise to focus on these smaller, more niche markets where it can better compete against the established firms. This strategy will allow Coca-Cola to build a strong presence in the Indian energy drink market and eventually expand into the larger retail outlets.
The alternative distribution channels that Coca-Cola is targeting are much less saturated than the large retail outlets, so the company has a much better chance of success in these markets. Additionally, by targeting these smaller markets first, Coca-Cola can build up a loyal customer base that will be more likely to purchase its products when they become available in larger retail outlets.
Overall, Coca-Cola's strategy is a smart one that should allow the company to gain a strong foothold in the Indian energy drink market.
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