Fizzy drinks bubble up in rural market

Rural consumers aren’t just going for branded soaps, detergents and biscuits like their urban counterparts, their preferences are changing for fizzy drinks as well because many brands in the rural market contributes equally to the urban market.
  • Parle Agro’s Appy Fizz, which has grown to a sizeable Rs 700 crore in annual sales, draws 45% of its turnover from rural markets.
  • In order to push the brand, Parle Agro has launched a new 160ml bottle which has shown a huge increase in sales due its pocket friendly price of Rs. 10.
  • Trends of urbanization are having a rub-off effect on rural India, with other major soft drinks players witnessing a similar experience like Coca Cola.
  • Brands accepts the fact that people have their personal preference while selecting the soft drinks. Keeping this as priority, Coca Cola started out on a journey to broaden its beverage portfolio and offer choices to  its consumers across segments in urban, semi-urban and rural markets, which suit their palate and wallet.
  • While Indian consumers have traditionally been price-sensitive, brands are also focusing on the retail prices. Coca Cola has also launched Minute Maid Vitingo which comes in single-serving dilutable sachets of 18gm priced at Rs 5.
  • Pepsico India is also driving deeper penetration into rural markets by increasing direct distribution, along with working on a hub-and-spoke model to reach more consumers.
Brands are targeting the youth and trying to penetrate across the country, irrespective of whether it’s an urban consumer or rural. Brands that are majorly into  beverages are more conscious about the product and price mix.

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