...Case Two: Coke and Pepsi learn to compete in India 1) The political environment has played key role in the following ways: Indian government viewed as unfriendly to foreign investors. Outside investment have been allowed only in high-tech sectors and was almost entirely prohibited in consumer goods sectors. If an item could be obtained anywhere else within the country, imports of similar items were forbidden. This gave Indian consumers have little choice of products or brands and no guarantees of quality or reliability. Also, Indian Laws, the government mandated that Pepsi’s products be promoted under the “Lehar Pepsi” name. For Coca-Cola, they attempted to enter into Indian market by joining with Parle and became “Coca-Cola India”. Some of these things may have been anticipated, especially the corruption within Indian government. As far as the contamination issues goes, that might not have been so easy to anticipate. Both companies held their own when trying to prove their products were within safe limits compared to other food products. They could have developments in political arena; Coke could agree to start new bottling plants instead of buying out Parle, and, therefore, wouldn’t agree to sell 49% of their equity. 2) Coca-Cola entered the market again a few years after Pepsi entered. While Coke's application was being denied, Pepsi's was being approved which gave them a head start in the market. Although it would seem that Pepsi would benefit from getting a head...
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...Coke and Pepsi Learn to Compete In India. Summary of the case The case of Coke and Pepsi in India is a lesson that all marketers can observe, analyze and learn from, since it involves so many marketing aspects that are essential for all marketers to take into consideration. Both companies had many difficulties, especially Coca-Cola, and it's useful to observe how it dealt with the different aspects, stating from the political environment of the Indian market and the trade barriers it faced, going through the market entry and penetration strategies considered and the flexible marketing mix used and how it was placed to increase consumption and market share, ending with the change in the environment and market due to boycott campaigns for different reasons. Discussion Political environment and trade barriers: Until the early 1990s, India was considered unfriendly to foreign investors, especially in consumer goods sector. If an item could be obtained within the country, imports of similar items were forbidden. Due to this environment, Coca-Cola had withdrawn from the Indian market in 1977. Looking back at Coca-Cola's withdrawal we can notice: Coke's refusal to give the formula and withdraw from the market wasn't a clever decision, because as a big company, coke must expect to face many challenges. It should have believed in it marketing capabilities and its ability to position its brand as a unique one, different from others even if they claim they are...
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...Coke and Pepsi Learn to Compete in India A. Identification of issues and Problems Step 1—overview of the case study During the 1900s and the beginning of the new millennium India’s government had opened its doors wide open to foreign investors, but the Coca-Cola Corporation and PepsiCo experienced many difficult challenges. Both companies were engulfed with unexpected problems and difficult situations that led to the recognition that India’s market was very different and special knowledge, skills and local expertise was needed to be obtained if the two companies were to succeed. As Ronald McEachern, PepsiCo’s Asia chief, stated, “India is the beverage battlefield for 2003”. Pepsi entered into the Indian beverage market in July 1986 as a joint venture with two local partners, Voltas and Punjab Agro, forming ”Pepsi Foods Ltd.” 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. In many ways, Coke and Pepsi managers had to learn the hard way that ‘what works here’ does not always ‘work there’. In India, there are two main high seasons for the consumption of soft drinks. First being the summer session which lasts about seventy-five days in mid-April to June. The second major opportunity for Coca-Cola and PepsiCo in India is the annual Navratri celebrations. Another issue that the Indian...
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...Case 1-3 Coke and Pepsi Learn to Compete in India Tyler McBee MKT 3450- 01 17 September 2013 3. Both Pepsi and Coca-Cola have effectively attempted to accommodate their products to the tastes and preferences of India. As an advertisement and sponsorship method, both companies have partnered with cricket, movies, and music. These three entertainment industries are very popular in India. Something that has set Pepsi and Coca-Cola apart from other companies in the food industry is partnering with religious and other festivities. Serving or sponsoring events like Navratri makes a huge impact on society’s eyes causing them to see Coca-Cola and Pepsi as socially responsible companies. Pricing policies in India is difficult to work with, because of the restrictions by the government. Pepsi has had a leg up on Coca-Cola because of their early entry into the industry. Obviously they have had better reactions from consumers because Pepsi seems to care, simply because it reached to smaller villages and different communities than Coca-Cola; in consumers’ eyes this appears that Pepsi just cares more. 5. An idea to help with their water issues within each company’s plants is to recycle water. If water is needed to run a machine or make a certain ingredient for the finished product and the water isn’t contaminated or altered by any way, why not reuse it? I believe that Coca-Cola approached the retalaliation of the water issue with a bad attitude. A foreign company such...
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...1. The political environment in India has proven to be critical to company performance for both PepsiCo and Coca- Cola India. What specific aspects of the political environment have played key roles? Could these effects have been anticipated prior to market entry? If not, could developments in the political arena have been handled better by each company? Ans. The political environment in India has proven to be critical to company performance for both PepsiCo and Coco-Cola India. Some aspects were: ïŠ Adjustments in the Indian government like new procedures set of laws and a closed system ïŠ Change in the names of each company (Lehar Pepsi & Coca Cola India) ïŠ Problems with the water contamination ïŠ The policies that excluded international companies ïŠ Boycotts of American goods ïŠ Low demand for carbonated drinks ïŠ Prohibition of imports If they could provide in a certain way because they could have studied the market better and not to preempt or enter this market without a good after market research, however due to the popularity that has the brand and the name of Coca Cola around the world I could almost guarantee the success of this anywhere in the world. In conclusion, they had to investigate more in depth to ensure the full success of this. 2. Timing of entry into the Indian market brought different results for PepsiCo and Coca- Cola India. What benefits or disadvantages accrued as a result of earlier or later market entry? Ans. Coca-Cola into the...
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... Prof. Benjie Sandoval Case 2: Coke and Pepsi Learn to Compete in India I. INTRODUCTION When the world’s two giant soft drink companies Coca-Cola and Pepsi entered the Indian market in the 1990s, they experienced several problems and difficulties. These setbacks led them to realize that what works for one country will not necessarily work for others. In 1988, the Indian government warned the public of the harmful effects of BVO, which was an ingredient used in producing local soft drinks. In 1986, PepsiCo introduced Lehar 7UP and Lehar Pepsi, even though they experienced strict government rules and guidelines, because they wanted to “get an early entry while the market is developing”. In 1990, Coca-Cola attempted to reenter the market. In order to integrate themselves into the Indian market and better compete with the local companies, both Coca-Cola and Pepsi participated in local festivals, released TV campaigns featuring local celebrities and got local athletes to promote their products. Other measures that the two American brands utilized included lowering the price of their products and introducing new product categories. However, just as they were gaining market share, an issue regarding the presence of pesticide residue in their drinks resulted in several partial bans in various Indian states. Their silence about it and their slow response caused them to lose important customers. Coke also faced another controversy with one of its plants...
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...industry been so profitable? We will use the Porter’s Five Forces framework to demonstrate why the soft drink industry – where Coke and Pepsi were, and still are, the two largest players – has been so profitable. Historically, several factors indicated high barriers to entry. Firstly, the successful consolidation and vertical integration of Coke and Pepsi’s bottling networks created an extensive, and almost exclusive, distribution prowess. In addition, franchise agreements since 1987 restricted the flexibility of bottlers to handle directly competing brands. Together, it became challenging for smaller concentrate producers to tap Coke and Pepsi’s consolidated systems for distribution of their products. Secondly, economies of scale – particularly with respect to bottling and canning production units – allowed Coke and Pepsi to constantly introduce new products and packages before other existing and potential rivals could do so to compete. By the late 1980s, Coke and Pepsi each offered over 10 major brands and at least 17 container types. Thirdly, Coke and Pepsi dominated shelf space in supermarkets along with national pouring rights (89% combined in 2009). The two also invested hefty sums (over $370 million combined in 2009 alone) in advertising to help foster strong brand equity and loyalty. In short, mass availability and visibility of Coke and Pepsi made it difficult and costly for rivals to push their brands and products. The fear of retaliation, especially in terms of price...
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...Coke and Pepsi Learn to Compete in India BRIEF SUMMARY OF CASE: This is a detailed and comprehensive case describing the market entry of two global consumer product companies, PepsiCo and Coca-Cola Corporation into a Big Emerging Market (BEM), India. It traces the history of the challenges encountered by these two companies in the developing country environment of India from the late 1980s to the present time. Emphasis is placed on lessons learned by the two companies as they adjust to competing in an unfamiliar and rapidly-changing environment. Key themes include: - The effects of the changing political scene resulting in the imposition of a non-standard domestication policy on foreign direct investors. - The need for foreign companies to adapt their marketing and competitive strategies to suit conditions in the Indian marketplace. - And the role of ‘globalization’ policies across the marketing mix variables, but particularly in the case of promotional strategies. Answers to Questions: Q1. The political environment in India has proven to be critical to company performance for both PepsiCo and Coca-Cola India. What specific aspects of the political environment have played key roles? Could these effects have been anticipated prior to market entry? If not, could developments in the political arena have been handled better by each company? A1. The political environment of India has had a very significant impact in the...
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...PEST ANALYSIS 8. RESEARCH OBJECTIVES & METHODOLOGY 9. REVIEW OF LITERATURE 10. PRIMARY FINDINGS & ANALYSIS 11. CONCLUSION & RECOMMENDATION 12. BIBLIOGRAPHY 13. ANNEXURE INTRODUCTION This project is focused on studying the various marketing strategies of Coca-Cola and the scenario of Indian soft drink industry in the 1990’s. Coca-Cola Co., the global soft drink industry leader controlled Indian soft drink industry till 1977. Then Janta Party beats the Congress Party and the Central Government was changed. This change brought problems for Coca-Cola principle bottler, who was a big supporter of Gandhi Family. Now Janta Party government demanded that Coca-Cola should transfer its syrup formula to an India subsidiary (Chakravarty, 43). Because of...
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... COMPANY PROFILE - PAGE 12-63 * COCA-COLA COMPANY - PAGE 13-17 * GLOBAL MARKET SHARE OF COCA-COLA - PAGE 17-18 * TRENDS AND FORCES - PAGE 19-22 * POTER’S FIVE FORCES - PAGE 22-29 * PESTLE ANALYSIS - PAGE 29-33 * SWOT ANALYSIS - PAGE 33-40 * COCA-COLA INDIA - PAGE 41-42 * PRODUCTS IN INDIA - PAGE 42-46 * MARKETING MIX - PAGE 49-58 * PESTLE ANALYSIS...
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...www.GamesWala.com PROJECT REPORT ON COCA-COLA COMPANY SUBMITTED BY: * MUTHU KUMARAN (94) * NIDA MAJEED (103) * RAGHAV KUMAR (125) * RAHUL KALIA (126) * RAHUL NAGPAL (127) * SIMRAN KAUR PAHUJA (192) SUBMITTED TO: DR. KARTIK DAVE Jai Shree Ram, Dosto i am vikas gupta, age 31 years . i start a gaming website named www.GamesWala.com which has PR4 and ratings below 4 lakh. i need here 1 help from you, as i have no money to promote my gaming site,i am running graphic shop with 1 PC (yes 1 PC :) think how i am surviving with 1 PC and a family with 2 kids :P ), I do not know much about how to promote my website, so i decided to talk with you friends to come and join my site and play all the games for free, all games are personally selected by me from thousands of games. I am updating my website daily with lots of awesome games.You can play without register or register you id or you also can play with your facebook ID.hope you all will like my site and play free online games there, and don't forgot to tell your friends about my www.GamesWala.com :) CONTENTS EXECUTIVE SUMMARY - PAGE 2 CHAPTER 1 ...
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...Mr. ADESH TRIPATHI (AREA MARKETING MANAGER) SUBMITTED BY: Divya Tiwari MBA 3rd SEMESTER 2009-2010 DECELARATION I Divya Tiwari declare that this project report titled “Comparative Survey of Coke vs. Papsi” is an original work done by me under the guidance of Mr. ADESH TIWARI (AREA MARKATING MANAGER). I further declare that it is my original work as a part of my academic course. PLACE: KANPUR DATE: Aug. 16th, 2010 Divya Tiwari INDEX TITLE PAGE AKNOWLEDGEMENT MEANING OF PROJECT INTRODUCTION CHAPTER 1: PROFILES * HISTORY OF THE COMPANY * EARLY GROWTH * WARTIME DEVELOPMENT RECENT DEVELOPMENTS * * POSTWAR GROWTH CHAPTER 2: INDUSTRIAL PROFILE * SOFT DRINK INDUSTRY IN INDIA * COCA-COLA IN INDIA * VISION OF COCA-COLA IN INDIA * MISSION OF THE COCA-COLA IN INDIA CHAPTER 3: PRODUCT PROFILE * SOFT DRINK INDUSTRY IN INDIA * COCA-COLA IN INDIA * VISION OF COCA-COLA IN INDIA * MISSION OF THE COCA-COLA IN INDIA CHAPTER 4: THE COMPETITIVEAREA * THE COMPETITIVE AREA AMONG COKE AND PEPSI * ADVERTISING CHAPTER 5: MARKETING DEPATMENT * MARKETING DEPARTMENT * SALES PROMOTION TECHNIQUES OF COMPANY * CRITERIA FOR PROVIDING FREE CHILLING EQUIPMENTS * S.G.A PROVIDING COMPANIES CHAPTER 6 INTRODUCTION ...
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...For the exclusive use of R. PONCE 9-702-442 REV: JANUARY 27, 2004 DAVID B. YOFFIE Cola Wars Continue: Coke and Pepsi in the Twenty-First Century For over a century, Coca-Cola and Pepsi-Cola vied for “throat share” of the world’s beverage market. The most intense battles of the cola wars were fought over the $60-billion industry in the United States, where the average American consumed 53 gallons of carbonated soft drinks (CSD) per year. In a “carefully waged competitive struggle,” from 1975 to 1995 both Coke and Pepsi achieved average annual growth of around 10% as both U.S. and worldwide CSD consumption consistently rose. According to Roger Enrico, former CEO of Pepsi-Cola: The warfare must be perceived as a continuing battle without blood. Without Coke, Pepsi would have a tough time being an original and lively competitor. The more successful they are, the sharper we have to be. If the Coca-Cola company didn’t exist, we’d pray for someone to invent them. And on the other side of the fence, I’m sure the folks at Coke would say that nothing contributes as much to the present-day success of the Coca-Cola company than . . . Pepsi.1 This cozy relationship was threatened in the late 1990s, however, when U.S. CSD consumption dropped for two consecutive years and worldwide shipments slowed for both Coke and Pepsi. In response, both firms began to modify their bottling, pricing, and brand strategies. They also looked to emerging international markets to fuel...
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...of Management Technology, Hyderabad (IMT,HYD), 2015 9-702-442 REV: JANUARY 27, 2004 DAVID B. YOFFIE Cola Wars Continue: Coke and Pepsi in the Twenty-First Century For over a century, Coca-Cola and Pepsi-Cola vied for “throat share” of the world’s beverage market. The most intense battles of the cola wars were fought over the $60-billion industry in the United States, where the average American consumed 53 gallons of carbonated soft drinks (CSD) per year. In a “carefully waged competitive struggle,” from 1975 to 1995 both Coke and Pepsi achieved average annual growth of around 10% as both U.S. and worldwide CSD consumption consistently rose. According to Roger Enrico, former CEO of Pepsi-Cola: The warfare must be perceived as a continuing battle without blood. Without Coke, Pepsi would have a tough time being an original and lively competitor. The more successful they are, the sharper we have to be. If the Coca-Cola company didn’t exist, we’d pray for someone to invent them. And on the other side of the fence, I’m sure the folks at Coke would say that nothing contributes as much to the present-day success of the Coca-Cola company than . . . Pepsi.1 This cozy relationship was threatened in the late 1990s, however, when U.S. CSD consumption dropped for two consecutive years and worldwide shipments slowed for both Coke and Pepsi. In response, both firms began to modify their bottling, pricing, and brand strategies. They also looked to emerging international...
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...PROJECT CONTENTS: 1. INTRODUCTION ………………………………………………………………….2 2. HISTORY …………………………………………………………………………..3 3. COCA COLA IN INDIA……………………………………………………………7 4. MARKETING STRATEGY………………………………………………………..12 4. THE ADVERTISING CAMPAIGN………………………………………………..13 6. SERGIO ZYMAN…………………………………………………………………..17 7. COCA COLA’S RENOWNED ADS……………………………………...………..21 8. BOLLYWOOD ACTORS IN ADS…...…………………………………………….27 9. THANDA MATLAB COCA COLA………………………………………………..28 10. COKE’S AD AGENCIES IN INDIA………………………………………………29 11. THE STORY BEHIND ITS SMALL WORLD MACHINES AD…………………30 12. CONCLUSION……………………………………………………………………..32 13. BIBLIOGRAPHY…………………………………………………………………..33 “I don’t care about making award-winning commercial. The only thing …that any marketing person should care about is real consumption.”-Sergio Zyman, The end of marketing as we know it,1999 INTRODUCTION: Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines throughout the world. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States since March 27, 1944). Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century. The company produces concentrate, which is then sold...
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