The Indian soft drinks market was dominated by local players in the 1990s, but faced issues when carcinogenic chemicals were found in drinks. This opened opportunities for multinational companies like Coca-Cola and Pepsi to enter the market. Both companies invested heavily in building local brands and adapting products to local tastes. By the 2000s, they were successful in gaining market share, but also faced issues like pressure groups accusing products of environmental and health issues, requiring companies to focus on marketing, research, and stakeholder relationships to navigate challenges in the evolving Indian market.
3. The Indian soft drinks industry
1993: over 45% sof t dr i nk
M ket l eader s: Par l e Agr o, Pur e D i nks,
ar
r
M
oder n Food
1998: car ci nogeni c chem cal i n sof t dr i nks
i
W ni ng
ar
i
al
N l ar ge Pr oducer s W t hdr aw
on-car bonat ed vs
C bonat ed
ar
6 pr oduct segm s : C a, C oudy
ent
ol
l
l em O ange, Soda, M
on, r
ango and
C ear l em
l
on.
4. India: Unfriendly to Foreign Investors
Pr i nci pl e of I ndi genous
Avai l abi l i t y
N I ndust r i al Pol i cy: el i m nat e
ew
i
Bar r i er s
5. The enter of Coca Cola & Pepsi
Coca Cola
1993
Sel
Pepsi
1986
l 49% equi t y as a Sal es coul d not
ri ecei ved er i ng exceedus upon ent r y
al i en st at 25%
condi t on of ent
and buyi ng Par l e‘ (an
Pepsi Foods Lt d:
I ndi an com
pany)
pr ocess and
di st r i but e l ocal
Becam ‚C
e oca C a I ndi a‛r ui t s e ‚Lehar Pepsi ‛
ol
f Becamand veget abl es
6. Fast Forward to the New Millennium
Seasonal Sal es Pr om i ons-2006 N at r i
ot
avr
C pai gn
am
TV C pai gn
am
Pepsi Sponsor shi p of C i cket and
r
Foot bal l
C
oca-C a‘s Li f est yl e
ol
Adver t i si ng
The Af f or dabi l i t y Pl ank
8. Comments on the decision
+Ti m y r esponded t o
el
t he decl i ne i n
car bonat ed dr i nks
consum i on and
pt
i ncr ease i n noncar bonat ed ones.
-N cor e pr oduct s
ot
consum m e t i m and
e or
e
m
oney i n R , not have
nD
enough exper i ence t o
com e w t h m ket
pet
i
ar
l eader s (Par l e)
+D ver si f y t o gai n
i
m e m ket shar e
or
ar
-‚Sel f -canni bal i ze‛
9. PepsiCo’s Aquafina
Products
Price
- 750m =10R
l
s
- At f i r st :
(w l e l eader
hi
onl y 750m
l
Bi sl er i :1l =10R
s)
bot t l e
‚af f or dabl e
- Lat er : added pr i ce‛
500m and 1l
l
+guar ant eed
bot t l e t he qual i t y + an
young, on-t he- i nt er nat i onal
go cust om s, t am -pr oof
er
per
seal
Place
Promotion
- Popul ar
pl aces:
r et ai l
st or es,
m r os,
et
super m ket
ar
s
t ar get ed
cust om s
er
- ‚pur i t y,
saf et y and
heal t h‛
posi t i oni ng
- Thr ough
pr i nt , TV,
out door ads
- St r ong
pr om i on at
ot
school s/col l e
ges
10. Products
- Var i ous pack
si zes: 500m t o
l
25l
- 200m cups
l
Tar get
r est aur ant s,
w
eddi ngs,
par t i es and
si m l ar soci al
i
occasi ons
Coca-Cola’s Kinley
Price
Place
Promotion
- ‚Tr ust i n
- The sam as
e
- Fi r st i n ever y
l eader ’s i n 2003 sout her n
dr op‛><unr el i abi
et
- I n 2009, C
oke m r os, t hen l i t y of or di nar y
i
kept sam pr i ce nat i onw de t ap dr i nki ng
e
w er
at
f or 500m
l
bot t l es,w
hen
- C
onnect i ng
Pepsi C and
o
w t h cust om s
i
er
Bi sl er i hi ked
by ur gi ng t hem
pr i ce.
t o r edi scover
t r ust i n each
ot her .
11. Who won???
Market share of bottled water brands
Others
24%
Bisleri
36%
Aquafina
15%
Kinley
25%
12. Heavily Affected by Pressure Groups
An envi r onm al or gani zat i on accused
ent
t hei r pr oduct s of cont ai ni ng
car ci nogeni c pest i ci de
I n U an act i vi st gr oup i n
S,
C i f or ni a
al
l aunched a cam gn agai nst C
pai
ocaSt udent s of a m or m d-W er n
aj
i
est
C a I ndi a
ol
uni ver si t i es cal l ed f or a ban on t he
sal e of C
oca-C a pr oduct s
ol
13. How can they confront the issues of water use?
- H p peopl e r eal i ze t hat w her t hey
el
het
m
anuf act ur e or not , w er i s st i l l a
at
pr obl em
- W k w t h t he com uni t i es t o r educe
or
i
m
t he w er use (as pr om sed)
at
i
G n back posi t i ve i m
ai
age and
consum s’ t r ust
er
14. How can defuse boycotts or demonstrations
against the product
-Pr ovi de sci ent i f i c evi dence t hat t hei r pr oduc
-Be cl ear t o t he publ i c about t he
r esul t s
15. Careful Research
Adaption to the new market
Be prepared for unexpected event
+ Appropriate behavior
Never underestimate
the political potency of a scandal
Satisfy safety or environmental regulations
16. Choose the right time to enter
Build good relationship with the government
17. Focus more on marketing and
advertising strategies
Keep up with the emerging trends in the market
18. PepsiCo and Cola – which could have more
prospects to succeed in this market?
