...Coca-Cola in India 1. What aspects of U.S. culture and of Indian culture may have been causes of Coke’s difficulties in India? Something that could have been a problem right from the start is communication. Countries have different ways of communication, and something could be translated completely opposite of what was meant. Communication problems could have been a cause of the problems in India. Also, the different styles of communication could have been an issue because the United States and India do not use the same styles. Another big problem is that something could be accepted in India and be completely wrong in the United States. What some people don’t understand is that every culture has their own way of doing things, and their own “rights and wrongs”. This is where businesses need to decide whether they are going to keep their rules and regulations and bring them into the foreign country (ethnocentric). Or, they need to consider the fact that every culture is different and they need their own practices (polycentric). Whichever way the business decides could bring up problems because if they do us the polycentric approach, then consumers living in the home country are going to see their practices as wrong, when indeed the company is allowing their cultural ways to occur. 2. How might Coca-Cola have responded differently when this situation first occurred, especially in terms of responding to negative perceptions among Indians of Coke and other MNCs? Coca-Cola...
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...Coca-Cola in India Coca-Cola is a brand name known throughout the entire world. It covers 60 percent of the $1.6 billion soft drink market. In 2006–2007, Coca-Cola faced some difficult challenges in the region of Kerala, India. The company was accused of using water that contained pesticides in its bottling plants in Kerala. An environmental group, the Center for Science and Environment (CSE), found 57 bottles of Coke and Pepsi products from 12 Indian states that contained unsafe levels of pesticides. The Kerala minister of health, Karnataka R. Ashok, imposed a ban on the manufacture and sale of Coca-Cola products in the region. Coca-Cola then arranged to have its drinks tested in a British lab, and the report found that the amount of pesticides found in Pepsi and Coca-Cola drinks was harmless to the body. Coca-Cola then ran numerous ads to regain consumers’ confidence in its products and brand. However, these efforts did not satisfy the environmental groups or the minister of health. India’s Changing Marketplace During the 1960s and 1970s, India’s economy faced many challenges, growing only an average of 3–3.5 percent per year. Numerous obstacles hindered foreign companies from investing in India, and many restrictions on eco-nomic activity caused huge difficulties for Indian firms and a lack of interest among foreign investors. For many years the government had problems with implementing reform and overcoming bureaucratic and political divi-sions. Business...
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...Coca Cola in India: Managing Cultural Differences Written By Kristina DeLong Jones International University March 14th, 2014 Americans value time. This means they believe keeping appointments and deadlines are very important. EDiplomat (2014) says that people who miss deadlines in America are viewed as irresponsible and undependable. Indians have a more relaxed sense of time. Unfortunately that causes some American business people to look at them as lazy. According to Compare Business Products (2010) Indians are not particularly renowned for their punctuality; they are perceived as laid back people who only watch the clock when it’s close to quitting time. When it comes to Americans they seem to live by “if it wasn’t documented, it never happened.” That means they feel the need to document most things on paper. Americans also use a lot of emails and text. This is very different in India because they don’t keep proper records. They also don’t usually know how to use proper email etiquette. However, they are very good at picking up any new technique. Numerous American companies push for large corporate meetings. Americans express their feelings and opinions much more freely than Indians. Indians are not used to much public speaking, but that is done frequently in America. Indians usually are more apt to express opinions in smaller groups than in large ones like it is done in America. Coca Cola should be concerned when doing business in India because they have expirations...
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...Jeremy King CC: Christopher Cowan DATE: 08/07/03 SUBJECT: Coca-Cola India On August 5th, 2003 the Center for Science and Environment (CSE) issued a press release titled “Hard Truths about Soft Drinks”. Tests conducted by CSE at the Pollution Monitoring Laboratory (PML) found concerning amounts of pesticide residue in all twelve major brands of cold beverages sold in and around Delhi. Behind Tokyo, Delhi is the second largest agglomeration in the world with 23 million inhabitants2. Immediate reaction to CSE’s report on soft drinks ranged from the Indian government banning Coke (and Pepsi) products in Parliament cafeterias to widespread mistrust of the Coca-Cola India brand. Within weeks sales dropped by 30-40% and within months Coke’s stock dipped 10 percent on the NYSE1. While CSE’s report has resulted in declining sales, employee morale issues and a negative public brand perception more importantly the insecticides CSE identified are known to cause cancer, birth defects and inflict severe damage to the nervous, immune and reproductive systems. These possible health risks linked to product consumption is the single most significant ethical issue facing Coca-Cola India today. As you requested, I present the following three strategies to assist in the successful rebuilding of the Coca-Cola India brand. The objectives of each strategy are clear; sway public opinion to identify with Coca-Cola India’s dedication to offering the highest standards of social...
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...What aspects of U.S. culture and of Indian culture may have been causes of Coke´s difficulties in India? The iconic white lettering against the bright red background – a strong brand image that is undoubtedly known throughout the entire world. Holding a market share of 60% in the soft drink market Coca-Cola is a global key player in the beverage industry supported with operations in over 200 countries. Coca-Cola´s brand strength is reinforced by its worldwide distribution and availability. Therefore Coca-Cola chose to penetrate the Indian market as India is one of the most promising countries for overseas business operations according to several rankings and reports. Disastrously, the multinational concern had to face issues regarding its quality, resource and market exploitation. The environmental group CSE accused the company of not being able to adhere to the needs of corporate social responsibility as their products had an unsafe level of pesticides which affect the health of Indian population. Moreover, they were denounced to create severe water shortages for the community by extracting large quantities of water for their factories. Due to its waste extracts, Coca-Cola was criticized for polluting the nearby fresh water and ground water and soil. But it weren´t just these claims that exacerbated the company´s situation in India. In my opinion, it was a lack of understanding of the cultural diversity and not being able to adapt to these differences effectively. It is...
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...Coca-Cola in India 1. We can count many aspects of U.S. culture and Indian culture which can cause difficulties in Coca- Cola India. The first big problem is the problem of communication between India and the United States , the language . They have difficulty understanding some points, which distorts communication. The United States and India have different expressions which causes misunderstandings of language. Another problem concerns the laws of the United States and India. Both countries do not have exactly the same laws in this area , which can cause disputes and difficulties . Values, philosophy, way of working, way of thinking, doing business are not at all the same in both countries . 2. Coca-Cola can say that they undertake to check their water they use to make the Coca immediately. They undertake to ensure that there are no pesticides and the water is safe. Coca has established a system of rainwater, there will be no more problems with pesticides because it will only rain water. All other companies could undergo the same checks. 3. Coca-Cola should change its advertising in India and adapt to local tastes. Culture and Indian flavors are different, Coca-Cola has to make changes at this level. Pepsi, Coca direct competitor to successfully entered the local market by adapting and practicing a lot of action of social responsibility (construction of wells to reduce water wastage ...). Coca should also do. 4. Big companies like coca-cola...
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...COCA-COLE IN INDIA SOCIO-CULTURAL FACTORS ANALYSIS Social and cultural environment refers to a social form has been formed under the values, religious beliefs, customs, ethics, and so combined. Any business in a certain social and cultural environment, where corporate marketing activities will be subject to environmental impact and socio-cultural constraint. This knowledge forms values, creates attitudes and influence behavior (Guidelines for Socio-cultural Analysis. Jonathan Renshaw ,Marie-Madeleine, Mailleux ,Sant`ana Volker von Bremen, 2001).Most scholars of culture would agree on the following characteristics of culture.In this essay I will explain the aspects that throw Coca-cola to difficulties in india. India`s water shortage and contamination Water scarcity has always been a problem for india. India`s water resource accounts for just 4% of the global water,, but it needs to feed 17 percent of the world's population. Moreover, India's total annual water consumption is expected to increase from 634 billion cubic meters currently to 1.18 trillion cubic meters in 50 years later. 40 years later. India can supply drinking water per capita will be less than half of 2001. In recent years. India's confronting growing water demand, but supply is dwindling. With the rapid population growth and economic development, coupled with a large number of agricultural areas of water irrigation, there will be a water supply crisis in India. In India, Coca-Cola and Pepsi have been criticized...
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...Tell me about your self | Good morning sir. It’s my pleasure to introduce myself. My name is Ganesh; I was born and brought up in Bhimavaram. I did my MCA from BIET COLLEGE in 2011, I completed my B. Sc graduation in KGRL Degree & PG college . I completed my +2 and schooling in Bhimavaram; Coming to my family, My father is a business man my mother is passed away I have only one brother, He has got marriedMy hobbies are playing chess, reading books and listening music. My strength is positive thinking and weakness is getting angry in short time. My goal is to attain respectable position that company wants to never lose me. | | Good morning. First of all I would like to thank you for giving such a golden opportunity to introduce about my self and its my pleasure to introduce about myself my name is Anand I was born and brought up in gadag. I completed my graduation from N.E.T. College in hubli and I completed under graduation from N.V. College in hubli and I finished my schooling from S.B. College in raichur. And my family consists of five members my father is business man and my mother is house wife and I have two brother both are studying. Finally I have a experience of one year. Thank you sir that's all about me. Very good morning to one and all present here/sir/madam. Its my pleasure to introduce myself. My name is Swetha N, born and brought up in Bangalore. Recently I have completed my B. COM from Bishop Cotton Women's christian...
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...Coca-Cola India On August 20, 2003 Sanjiv Gupta, President and CEO of Coca-Cola India, sat in his office contemplating the events of the last two weeks and debating his next move. Sales had dropped by 30-40%1 in only two weeks. On August 5th, The Center for Science and Environment (CSE), an activist group in India focused on environmental sustainability issues (specifically the effects of industrialization and economic growth) issued a press release stating: "12 major cold drink brands sold in and around Delhi contain a deadly cocktail of pesticide residues" (See Exhibit 1). According to tests conducted by the Pollution Monitoring Laboratory (PML) of the CSE from April to August, three samples of twelve PepsiCo and Coca-Cola brands from across the city were found to contain pesticide residues surpassing global standards by 30-36 times including lindane, DDT, malathion and chlorpyrifos (See Exhibit 2). These four pesticides were known to cause cancer, damage to the nervous and reproductive systems, birth defects, and severe disruption of the immune system. After this incidence the brand image of Coca Cola was tarnished and people started avoiding coca cola consumption. Since 2003 following the various allegations and issues such as presence of pesticide residues in its beverages and water resource contamination issues that the soft drink giant faced in India, their community-focused initiatives were further accelerated. To address these issues and to rebuild its tarnished...
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...“Coca-Cola y Pepsi aprenden a compartir en India” Hechos más relevantes * La experiencia de ambas empresas en la India durante los años 90 y principios del nuevo milenio no fue muy feliz. Experimentaron problemas inesperados, aprendieron que “lo que funciona aquí” no siempre “funciona allá”. * En 1993, más del 45% del sector de los refrescos embotellados de India estaba formado por pequeños fabricantes. * Coca-Cola había estado presente en el mercado Indio desde 1958 hasta que se retiró en 1977, después de una disputa con el gobierno que obligaba a la compañía a ceder el 60% de la empresa a nacionales y revelar su fórmula secreta del jarabe de su refresco. Cuando Coca-Cola se fue, Parle se convirtió en la compañía líder del mercado. * En 1988 muchas empresas de la industria de refrescos cerraron, debido a que el gobierno hizo público una investigación donde revelaba que el BVO (un ingrediente utilizado en los refrescos) era cancerígeno. Lo anterior causó que sólo los más grandes pudieran adaptarse, innovar y seguir existiendo en el mercado Indio. * Existe otra categoría de refrescos con sabor a frutas y sin gas. Esta categoría se encuentra en crecimiento debido a los estilos de vida más saludables. * En 1991 India experimentó una crisis económica muy grave. La producción industrial cayó y la inflación aumentaba. Un nuevo gobierno entró en Julio de 1991 y aplicó medidas par estabilizar la economía. Para 1994, la economía de la India se encontraba restaurada...
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...Coca-Cola Marketing Study Exploring Opportunities In India Agenda • Introduction • Challenges Faced • Opportunities Explored • Planning & Strategy • Actual Implementation & Results • Current Scenario & Future Prospects Coca Cola – The Company Coca Cola Worldwide • It was founded by John Pemberton in 1886 • It is No 1 nonalcoholic beverage company with a market share of with a 52% • It is the largest brand in the world with a brand value of 67 billion dollars. • It has its footmark in more than 200 Countries. Mission • • • • To refresh the World. To inspire moments of Optimism To create Value and Make a Difference The Coca Cola promise simply says - The Coca Cola Company exists to benefit and refresh everyone who is touched by our business. Coca Cola in India • • • • • Entered the India market in early 1790’s. Closed down it operations in India in 1977. Came back to India in 1993. Has a market share of 51%. Created a direct employment of 25,000 people & indirect employment of 1,50,000 people. • Hindustan Coca Cola Beverages is a 100% owned bottler. Challenges Faced Re-entry in India • Late comeback of Coca Cola after PepsiCo had already arrived in Indian market • Pepsi’s head start as a disadvantage for Coca cola’s brand awareness • Acquisition of Parle • “Thumbs Up or Coke” decision • Competing with the help of Thumbs Up in the Cola war Beverages Market in India • No profitability after establishing presence against competition • Marketing...
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...SOCIO CULTURAL BARRIERS FACED BY COCA-COLA IN INDIA AND SOLUTIONS TO OVERCOME THE ISSUES CONTENTS 1. EXECUTIVE SUMMARY 3 2. TERMS OF REFERENCE 3 3. CURRENT SCENARIO 3 4. ANALYSIS OF THE SITUATION 4 4.1. STRENGTH 5 4.2. WEEKNESS 5 4.3. OPPORTUNITIES 5 4.4. THREATS 5 5. SOLUTIONS AND RECOMMENDATIONS 6 5.1. PUBLIC RELATIONS 6 5.2. ENHANCE RELATIONSHIP WITH GOVERNMENT 6 5.3. LAUNCH MARKETING CAMPAIGNS 7 5.4. LISTEN TO THE CUSTOMERS 7 5.5. MANAGING STYLE 7 5.6. PULL BACK PRICE- QUALITY TRADE –OFF PLANS 7 6. SUGGESTIONS 8 7. FORECASTS AND PREDICTIONS 9 8. CONCLUSION 9 9. REFERENCES 10 EXECUTIVE SUMMARY Coca – cola, the world’s largest selling soft drink company had established its strong presence in the world since 1886. Coca-Cola is the first international soft drink brand to enter the Indian market in the early 1970’s. Till 1977 Coca-Cola was the leading brand in India; later, due to FERA (Foreign Exchange Regulation Act), they left India and didn’t return till 1993. Coca-Cola had to face many issues regarding its quality, resource exploitation and market exploitation along with price-quality trade-offs. People all over India are challenging Coca-Cola for its abuse of water resource. Coca-Cola had affected both quality and quantity of ground water. Due to its waste extracts, Coca-Cola was criticized for polluting the nearby fresh water and ground water and soil; because of...
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...SOCIO CULTURAL BARRIERS FACED BY COCA-COLA IN INDIA AND SOLUTIONS TO OVERCOME THE ISSUES CONTENTS 1. EXECUTIVE SUMMARY 3 2. TERMS OF REFERENCE 3 3. CURRENT SCENARIO 3 4. ANALYSIS OF THE SITUATION 4 4.1. STRENGTH 5 4.2. WEEKNESS 5 4.3. OPPORTUNITIES 5 4.4. THREATS 5 5. SOLUTIONS AND RECOMMENDATIONS 6 5.1. PUBLIC RELATIONS 6 5.2. ENHANCE RELATIONSHIP WITH GOVERNMENT 6 5.3. LAUNCH MARKETING CAMPAIGNS 7 5.4. LISTEN TO THE CUSTOMERS 7 5.5. MANAGING STYLE 7 5.6. PULL BACK PRICE- QUALITY TRADE –OFF PLANS 7 6. SUGGESTIONS 8 7. FORECASTS AND PREDICTIONS 9 8. CONCLUSION 9 9. REFERENCES 10 EXECUTIVE SUMMARY Coca – cola, the world’s largest selling soft drink company had established its strong presence in the world since 1886. Coca-Cola is the first international soft drink brand to enter the Indian market in the early 1970’s. Till 1977 Coca-Cola was the leading brand in India; later, due to FERA (Foreign Exchange Regulation Act), they left India and didn’t return till 1993. Coca-Cola had to face many issues regarding its quality, resource exploitation and market exploitation along with price-quality trade-offs. People all over India are challenging Coca-Cola for its abuse of water resource. Coca-Cola had affected both quality and quantity of ground water. Due to its waste extracts, Coca-Cola was criticized for polluting the nearby fresh water and ground water and soil; because of this issue, farmers...
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...Coca-Cola India On August 20, 2003 Sanjiv Gupta, President and CEO of Coca-Cola India, sat in his office contemplating the events of the last two weeks and debating his next move. Sales had dropped by 30-40%1 in only two weeks on the heels of a 75% five-year growth trajectory and 25-30%2 year-to-date growth. Many leading clubs, retailers, restaurants, and college campuses across the country had stopped selling Coca-Cola3 and only six weeks into his new role as CEO, Gupta was embroiled in a crisis that threatened the momentum gained from a highly successful two-year marketing campaign that had given Coca-Cola market leadership over Pepsi. On August 5th, The Center for Science and Environment (CSE), an activist group in India focused on environmental sustainability issues (specifically the effects of industrialization and economic growth) issued a press release stating: "12 major cold drink brands sold in and around Delhi contain a deadly cocktail of pesticide residues" (See Exhibit 1). According to tests conducted by the Pollution Monitoring Laboratory (PML) of the CSE from April to August, three samples of twelve PepsiCo and Coca-Cola brands from across the city were found to contain pesticide residues surpassing global standards by 30-36 times including lindane, DDT, malathion and chlorpyrifos (See Exhibit 2). These four pesticides were known to cause cancer, damage to the nervous and reproductive systems, birth defects, and severe disruption of the immune system.4 In reaction...
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...About Coca Cola India The Brand Coca Cola has been New India’s favorite for last 20 years. A market leader with strong hold of 51% over the Rs 50 billion soft drink industry in India. Coca Cola India boasts of growth rate twice that of the Indian GDP. Not only the numbers but the popularity and accepatibilty of the product cuts across all kinds of socioeconomic classification in India. The per capita consumption of Cold drinks in Inida is 7-8 bottles and cold drink segments collectively have a share of over 70% in the Indian beverage Industry Some facts about Coke India 1. Coca Cola India manufactures concentrate and beverage mixes under the wholly owned subsidiary of of The Coca-Cola Company namely Coca-Cola India Pvt Ltd, which re-entered Indian markets in 1993. 2. The company owns a bottling unit known as Hindustan Coca-Cola Beverages Pvt Ltd, which works in collaboration with 13 authorized bottling partners. 3. Coca Cola family today includes 7000 Indian distributors and 1.7 million retailers. 4. Nearly 2 billion INR has been invested in India operations since its entry in the Indian market. 5. Early acquisition of brands Thumbs up, Limca and Gold Spot gave Coca Cola India access to better infrastructure and market reach 6. Coca Cola India’s Brand Umbrella included the following • Coca-Cola • Fanta Orange • Limca • Sprite, • Thums Up, • Burn • Kinley • Maaza • Minute Maid Pulpy Orange, • Minute Maid Nimbu Fresh • The Georgia Gold range of teas and...
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