STP & Marketing Strategies

Segmentation

At the time of its launch, three categories of mineral water were prominent in the market. These were pouches, retail PET and bulk (20 litres capacity). Pouches were popular in both urban and rural because of their availability and pricing. PET bottles of 500ml to 1 litre capacity were being retailed from chemist to stationery. Bulk was a segment with huge margin and potential as they were much popular in households and corporate offices.

Targeting

As the consumers were becoming hygiene conscious and their purchasing power was also increasing, they were moving towards mineral water. Both domestic and international tourists were the potential customers of bottled water because of the scarcity of drinking water in most parts of the country.

Postioning

Coca-Cola India positioned Kinley as a brand based on ‘Purity’ and ‘Trust’ under the communication initiative ‘Boond Boond me Vishwas’. The brand, which already enjoyed the national distribution network of Coca-Cola India, Kinley positioned itself as a trustworthy and pure drinking water both in rural and urban areas. The company promised to give water as pure as it meant to be in their belief that “The right to pure, safe drinking water is fundamental”.

Marketing Strategies

In the early 2003, CCI's marketing strategy had three plans:        
• Acceptability by ensuring pervasive presence through right merchandising in retail outlets.
• Availability by ensuring presence within the consumer's reach.
• Affordability by ensuring relevant price points.

In the late 1990s, CCI decided to customize its marketing strategy for different regions and target customers. In each region, the dominant brand enjoyed all privileges while the other brands were supported according to their market share in that region. When Coca-Cola entered a crowded bottled water market by acquiring the Kinley brand in mid-2000, it had the advantage of an existing network of franchised bottlers and distribution networks. Its low cost structure revealed its ability to match any price wars that the then market leader 'Bisleri' could orchestrate. As a result, the platform of competition shifted to packaging (smaller bottles and pouches) and distribution (presence on railway stations and within airlines) rather than pure price wars. Kinley, within two years of operations, is now the market leader with 35% share of bottled water market.