Project Parivartan

FMCG companies are seeing a greater opportunity in rural India. Coca cola, one of the biggest manufacturers of non-alcoholic beverages has now turned towards the rural India. Coca Cola conceived the project “Parivartan” in 2007, where it trains retailers in rural India under this project.

About Project Parivartan:

Coca Cola launched Coca Cola University to provide virtual trainings and capability learning activities.

Mom and pop shop owners are given training on displaying and stocking the products well. The program was first taken in Agra and then it reached to villages. Company in villages mainly focuses on empowering women, who sits and takes care of the

family owned shop. The goal of this innovative training program was to provide traditional Indian retailers with the

skills, tools and techniques required to succeed in a constantly changing retail scenario. Women are taught to manage shops, stock, customers, financials and merchandising. Training is offered in 6 languages. Presentations (including audio/visual technology) in local Hindi language help small retailers

(with stores less than 200 square feet in average size) to better understand the concepts involved. The program lasts 10 days, and participants receive a certificate from the company and insurance

of Rs 1 lakh for accidental death or premature disability. Coca Cola also invests in cooling infrastructure for rural retailers. These coolers are solar powered and hence help in keeping the price low as well as in increasing

the sales. The training is conducted in classrooms or customized buses called as “Coca Cola University on

wheels”.

Swot Analysis of Project Parivartan:

Strength:

Extended to big and opportune market Welfare of society. Empowering women. Sales has increased which in turn has increased the inventory turns. Increased market share.

Weaknesses:

Increased transportation cost (including the transportation cost incurred from the customized buses for training the natives of villages).

Increased inventory management cost (not only beverages but since company provides cooling refrigerators, it also adds to the inventory and hence increases it).

Extra expenses incurred in teaching and marketing to the natives of villages. High maintenance cost (including the cost incurred in maintaining the refrigerators as well as the

customized buses).

Opportunities:

Wide market with large scope and opportunity. There is a need of employment in rural markets and this project caters to that specific need. Generally, a mom and pop store is taken care by women in villages, therefore targeting them

gives a wide scope and future prospects for marketing the products. Since, natives in villages have low incomes any other means that will add to their income in a

good way will attract them. Coca Cola beverages is a new product for the rural market. Coca Cola provides low priced beverages in villages, which is the real need of the rural market.

Threats:

Increase in price of the products. Arrival of competitors. Poor cognitive power and illiteracy. Campaigns against soft drinks. Controversies surrounding the acidic level in these beverages. Cheaper substitutes.

Conclusion: The Company through its ground breaking project has trained more than 135,000 retailers in the country. The company has helped empowering more than 5 million women in rural parts of the country. From this project, the company has increased its sales to 20% to 30% in rural areas. The company has planned more future projects to penetrate deep into the rural market where there is not only the prospects of growth but also a need for growth.