Coke ropes in Chennai firm for brand promotion

Coca-Cola, the world's largest soft drink company, has roped in Chennai-based brand-building and rural marketing firm Sanguine Media to promote its products in the southern states of the country.

Coke, as it is familiarly known, is believed to have signed a Rs 60 crore deal with Sanguine Media, under which the domestic firm will promote its brands for a six-month period.

The move assumes significance as the brand images of both the global soft drink giants operating in the country "� Coca-Cola and PepsiCo "� took a beating, after Centre for Science and Environment (CSE), a non-governmental organisation, had claimed to have found traces of pesticides beyond permissible limits in their products, and consequently, the Kerala government banned the products, though later overturned by a high court ruling.

Under the deal, Sanguine Media will promote Coke's products by conducting roadshows and other promotional activities in Andhra Pradesh, Karnataka, Tamil Nadu and Kerala.

Moreover, it will also conduct events in the remote regions of these states, which do not normally fall under the purview of a normal promotional agency, a source familiar with the development said.

D V Vinod Gopal, managing director and chief executive officer of Sanguine Media, declined to give more details other than saying the company was in talks with a global soft drink major. Coke officials were not available for comments.

According to industry analysts, the deal will help Coke in re-establishing its credibility in these states and improving its sales and marketing activities.

Coca-Cola, which kicked off its production in the country in 1993, has so far invested more than $1 billion. PepsiCo had debuted before the country's economic liberalisation started in 1991.

Last week, Sanguine Media, a BSE-listed company, announced that it had bagged GTC's (formerly, Golden Tobacco Company) Loe Tobac brand of cigarettes as its key account.

The company is also the contract producers for television software for southern regional channels. It also produces sports- and game-based contents to be marketed in the home, corporate and retail segments through CD and DVD formats.