Coke Studio - Not Music To Their Rival's Ears

Tracked By VARUN VASUDEVAN

Ever since Coca Cola India announced that it would be launching its cult musical property ‘Coke Studio’ in India, a deceptively simple question has been plaguing us at Brandwagon – Is it going to really work out for Coke? See Coke Studio Season 4 Promo (Pakistan version) -

Coca Cola’s flagship drink Coke (hereafter referred to by this name in the article) is one of the most famous examples of mass marketing. Over the years, Coke has stood for ubiquitous consumption as a product to be enjoyed by people of all ages. If any targeting has been done at all, its has been to up their sales in the country by focusing on consumers who were not taking note of their presence – targeting small town India through the ‘Tanda Matlab Coca Cola’ promotion or the lower income strata through the ‘Paanch Matlab Chotta coke’ campaign. On the other hand, their chief rival Pepsi has built a proposition clearly targeting the youth of India – teenagers and young adults.

Wooing the youth

Of late however, with the series of ‘Khule Toh Bat Chale’ advertisements, Coca Cola started signalling its intent of stepping into Pepsi’s territory. And Coke Studio is Coca Cola’s rocket to the moon. To quote Mr. Abhijit Datta - “Teens are the future of our business. We need to inculcate the habit of consuming our beverage at an early age. Through this association, our objective is not to tactfully drive sales in the next quarter but help strengthen the equity of the brand. Given that teens as a segment forms a critical part of Coca Cola’s spend, a significant part of the annual budget will be spent on Coke Studio.”

With so much riding on Coke Studio, the following questions need answering –

Will this concept really take-off in India?

With more than 96000 fans on facebook a month before its launch on TV (as I write this), there seems to be an enormous spill over effect of Coke Studio Pakistan. While sky high expectations and doubts of Bollywood’s interference may be weighing down some Coke custodians, they can take heart from the positive reviews posted on facebook by the lucky few who got to see it live.

There however remains a nagging question – Will there be a sizeable audience for indie music, classical music and rock on mainstream TV? Luckily for Coke, young India seems to be increasingly acceptable to new sounds (influenced by both home grown acts as well as the increased penetration of cult international acts like Porcupine Tree, Katatonia etc in India through college fests). It is a pleasant surprise that nearly one-third (Indian Classical, Indi Pop and Rock) of the youth fall into this category considering Bollywood’s all pervasiveness.*

Who will Coke really be targeting through this initiative? Will Coke and Pepsi end up spelling out the same positioning with only the product acting as a differentiator?

Continuing from the previous point, Coke is likely to end up catering to the more ‘serious music lover’ youth of India - the kind who would be listening to bands you don’t hear every day, appreciating specifics like guitar chords and riffs, the singer’s vocal range and not just humming the tune in a simple sing-a-long manner. One can almost see Coke getting positioned as this ‘cult-underground type youth brand’ as against Pepsi’s on your face and populistic ‘Youngistaan’.

So relax, there is a while to go before the only differentiator is a blind-taste test.

What tangible benefit is Coke looking at with respect to understanding its consumer?

Coke Studio has already been inviting facebook fans to watch episodes live and this offers a great touch point for Coca-cola to qualitatively understand its target audience first hand. Really, a small interaction with a fan waiting to see his idols perform will reveal some of his interests, traits etc.  

Also, a recently quoted incident by a fan where some Coke officials helped him out with his headphones again increases good-will towards the brand.

Besides, it serves as a platform for new coke offerings and promotional schemes.

Obviously, all this has to be carried out in the most unobtrusive manner possible, as the consumer has come mainly for the music.

 What advantage does such an entity offer Coca Cola vis-à-vis Pepsi?

Coke and Pepsi try to ensure top-of-mind recall through associations and sponsorships. If this concept works in India, Coke will reap the benefits of a proven tie-up running for a long time, something like a ‘Barclays’ Premier League giving it enormous recall mileage as consumers will discuss about the show all year round or importantly - atleast during the four summer months every year when the show is aired. Pepsi, on the other hand has no signature event of its own.

So all in all, the concept seems to be a ‘sound’ vehicle for Coke to carve a greater niche for itself in the minds of the Indian youth.

*References for data -
http://www.hindustantimes.com/specials/coverage/YouthSurvey/Habit-Belief.aspx