Coke And Pepsi Learn To Compete In India

1. Coke And Pepsi Learn To Compete In India Prepared By- Dhwani Shah MeghaJagtap Parth Purohit Rohan Mehta ParasCharanMochanBhola

5. Coca-Cola followed suit in 1990 with a joint venture with Britannia Industries India before creating a 100% owned company in 1993 and then ultimately aligning with Parle, the leader in the industry.

6. As both companies would soon discover, “competing in India requires special knowledge, skills, and local expertise…what works here does not always work there.” (Cateora & Graham, 2008, p. 604).

8. On-site activities, ‘buy one-get one free’ and lucky draw scheme like win the trip to Goa.

9. PepsiCo telecast ‘Navratriutsav 2000 at Mumbai’.

12. Launching of new ad campaign featuring the batting sensation, Mohammad Kaif.

13. Spot light has been on SachinTendulkar and AmitabhBachchan.

14. PepsiCo had capitalize team’s overall performance for world cup cricket held in South Africa.

16. Used a strategy ‘building a connect using the relevant local idioms’.

17. The campaign slogan was ‘ Thanda Matlab Coca-cola’, which focused on the youth.

19. Coca Cola’s Attempt to “Crack” Indian Market By 2002, hold 56% market in national soft drink market. It recovered the losses upto 400 Cr. which was incurred in 1993 (total Accumulated loss over 2000 Cr.) 49% of Holdings were ordered to sell to Indian Investors. More over FIPB was changed and again Co. begin to build new relations with bureaucrats.

20. The Second Gulf War During 2003, due to iraq war, an All-India Anti-Imperialist Forum to boycott purchase of American and British goods for “unjust war “. Led to decrease 50% in southern States through ‘shop-to-shop’ campaign

21. Learning Some Hard Lessons 3 Years cost cutting programs bought dramatic results. Local purchasing policies bought 57% savings in Import duties. By reinvigorated with an infusion of 3.5 Million spent on A&D held Thumbs Up ranked 2nd Nation wide.

22. Contamination Allegations And Water Usage In a production of 3 Lac ltr of Soda drink a day uses 1.5 million ltr of water, enough to meet the requirement of 20,000 people Content of Pesticides residue was found in 2003, leading to close of plant, until corporation won a court ruling allowing them to reopen.

23. Answer- 1 India was a closed economy in the beginning. Policy banning imports. The Liberalization of India’s Government in 1991. New Industrial Policy. Strict policies regarding the entry of foreign brands. Trade rules & regulations simplified. Foreign investment increased. Pepsi enters in 1986. Coca-Cola follows in 1993. Contd…

25. Pepsi became “Lehar Pepsi”.

26. Coca-Cola merged with Parle and became “Coca-Cola India”.

27. Different Laws for Pepsi and Coke

28. Coca-Cola agreed to sell off 49% of its stock as a condition of entering and buying out an Indian company.

29. Pepsi entered earlier, and was not subject to this.Contd…

31. Coke asked for a second extension that would delay it until 2007 which was denied.

32. Pepsi was held to this since they entered India in a different year.

33. Coke asked the Foreign Investment Promotion Board to block the votes of the Indian shareholders who would control 49% of Coke.

34. Change in oversight of the FIPB:

35. Past lobbying efforts made useless.Contd…

37. Answer-2

42. Catering to Indian tastes

43. Entering with products close to those already available in India such as colas, fruit drinks, carbonated waters

44. Waiting to introduce American type drinks

45. Coca-Cola introducing Sprite recently

46. Introducing new products

47. Bottled waterConti ..

49. Both advertise and use promotional material at Navratri.

50. Pepsi gives away premium rice and candy with Pepsi

51. Coca-Cola offers free passes, Coke giveaways as well as vacations

52. Use of different campaigns for different areas of India

53. “ India A” campaigns try to appeal to young urbanites

55. Pepsi started out with an aggressive pricing policy to try to get immediate market share from Indian competitors

57. Production plants and bottling centers placed in large cities all around India

60. In 1990, Pepsi Foods Ltd. changed the name of their product to “Lehar Pepsi” to conform with foreign collaboration rules.

62. Formed a joint venture with the market leader Parle in 1993.

63. For the festival of Navratri, Coca-Cola issued free passes to the celebration in each of its “Thumps Up” bottles.

66. They rejected the plan to put up green fields bottling plants as they took over Parle’s existing bottling plants.

69. They can also hire celebrities to do the Ads for their products because the public follows them.

71. Better marketing and advertising strategies

72. Widely accepted

73. More preferable

74. More market share

75. Less Political conflicts

76. Coke

77. Government conflicts

78. Trailing Pepsi in market sharePepsi will fare better in the long run

80. Beneficial to pay attention to market trends

81. Celebrity appeal makes for exceptional advertising

83. Establish a good business relationship with the government

84. Investment in quality products