...Case Study – Coke in India Adapted by Lesley Fleischman from: Hills, Jonathan and Welford, Richard. Corporate Social Responsibility and Environmental Management. 12, 168–177 (2005) August 2003 • • • • • October 2003 • • Coke has 44 wholly owned and franchise owned bottling plants in India Indian NGO finds that Coke and Pepsi products bottled in India contain pesticides. Immediate impact on Coke stock price. Coke threatened legal action over allegations. Indian government tests confirm findings. Coke hires PR firm, develops strategy to deflect media attention away Escalating community protests at bottling plants, demonstrations, hunger strikes, etc. December 2003 February 2004 March 2004 • • • • • • • • June 2004 • • • September 2004 • • October 2004 • • • February 2005 • • April 2005 • • May 2005 • • Ordered by Indian court to stop drawing groundwater for its bottling plant in Plachimada, Kerala Judge ruled that no power to allow a private party to extract such a huge quantity of groundwater Protesters claim that Coke water use was reducing agricultural yields Coke cited lack of rainfall, not their operations, as cause of crop declines Parliamentary committee finds high amounts of pesticide residue in Coke and Pepsi products bottled in India Not illegal, Indian safety standards weak Coke application for new bottling plant in Plachimada denied by local authorities because...
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...Coca-Cola India Analysis In the Coca-Cola India case, President and CEO of Coca-Cola India (Coke India) Sanjiv Gupta is faced with this question: Should he act further on the Center for Science and Environment’s (CSE) allegations that cold drinks contain too much pesticides or should he remain silent and let the information fade from public view? Section 1: Assumptions and Stakeholder Analysis The first assumption taken in this case is Coke India is not breaking any laws and telling the truth when it comes to the level of pesticides in its products and its routine testing for chemicals. This case is not about concealing illegal activity or lying to the public, rather, it discusses the question whether or not corporations have a right to influence government to regulate various systems. If the analysis takes lying and cheating into consideration, this interesting discussion would appear convoluted. The second assumption taken in this case is the definition of “acting further” means for Coke India. Because Coke India and Pepsi already called the study “baseless” in a press conference launched independent marketing campaigns and published open letters referring to fact/myth websites, this analysis assumes acting further means more than public relations (Coke India, 12). Pepsi has already “filed a petition with the high court questioning the credibility of the CSE’s claims” and Coke India has threatened legal recourse meaning acting further means more than legal recourse against...
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...Coca-Cola India Teaching Notes Introduction The Coca-Cola India case offers students a unique opportunity to look inside a crisis for one of the world’s most important brands as it occurs inside a developing nation. The case focuses specifically on issues related to brand, reputation, and Corporate Social Responsibility (CSR), and the intersection of all three. History reveals that companies with the strongest brands, most proactive policies of social responsibility, and deepest relationships with their consumers are the most attractive targets for NGO attacks. The very assets that define these leading companies provide the fodder NGOs are looking for to further their agendas. Global Exchange’s attacks on Starbucks over fair-trade coffee and against Nike over sweatshops in Asia, like the Center for Science and Environment’s (CSE) attack on Coca-Cola India, are all examples of NGOs using companies’ powerful reputations against them. Being an attractive target, however, need not imply vulnerability. Organizations and their leadership teams need to start thinking systematically, proactively, and strategically about their reputational risk from crises concerning CSR (corporate social responsibility) and take actions to mitigate these risks before they become reality. The CSE’s allegations of pesticide-contaminated Coke and Coca-Cola India’s response provide an important example of the world’s most important brand under attack and the steps taken in the aftermath...
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...COKE CASE STUDY: ISSUES IN THE GLOBAL SECTOR BY COREY J. GRIFFIN Coke is a major product brand that has grown from 1886 to becoming the number 1 brand in the world according to Interbrand’s Global Scorecard in 2003. All this success has not come with a little hardship, due to the fact that Coke is a global brand. Just as it was seen in the Nike case study, when a company becomes globalized it is hard to monitor and maintain every sector of the product name. On August 5, 2003 the CSE (Center for Science and Environment) released a critical press release that name 12 soft drinks brands, Coke brand included, that were sold in and around Delhi to have contain a deadly pesticide residues (CSE Press Release, “Hard Truths about Soft Drinks, 5 Aug 2003). CSE claimed that these dangerous pesticides were known to cause cancer, cause failure of the nervous and reproductive systems, birth defects, and damage to the immune system. Along with the hazardous chemicals found by CSE, there were very limited regulations in place for this industry to follow. These soft drink companies were receiving exemptions for the industrial licensing under the Industries (Development and Regulation) Act of 1951 that would have probably had a chance to take notice to these soft drink contamination events (CSE Press Release, 5 Aug 2003). In response to these very strong allegations from the Center for Science and Environment, Coke Enterprise of India launched their own internal investigation...
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...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 responsibility. The first approach suggests returning to Coke-Cola...
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...TITLE A STUDY ON EFFECTIVENESS OF MARKETING COKE AND PEPSI IN IT CITY. OBJECTIVE 1. Finding the satisfaction of retailers towards the movement of Coke and Pepsi in terms of value addition and promotional strategies of Coke and Pepsi. 2. Products and quantities offered and the satisfaction different class of customers. Problem Statement Based on the promotional strategies, improvement of distribution efficiency and suggestions for the improvement in terms of the value addition towards the retailers by Coke and Pepsi distributors. Literature Review 1. Lemley, Mark & McKenna, Mark The article discusses market definition in terms of intellectual property (IP) and antitrust law in the U.S. as of August 2012. The carbonated soft drink products developed by the competitors Coca-Cola Co. and PepsiCo Inc. are used to address several IP and antitrust law issues, including fair use under copyright law and mark similarity under trademark law. A consideration of supply substitution under antitrust market definition is also mentioned. 2. Nair, Anil & Selover, David D (2012) The study of competitive dynamics has become a vibrant area of research within strategic management. We contribute to this research stream by examining the nature of competitive interaction between Coke and Pepsi. We found that while Coke''s and Pepsi''s strategies display interdependent relationships, the volatility of the interaction among strategies do not always attenuate over time, and Coke''s strategies...
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...The case study prepared by Archie B. Carroll entitled, “Coke and Pepsi in India: Issues, Ethics, and Crisis Management”, describes issues two major, well known multinational corporations (MNCs) have been facing in India over the past several years, since 2003. Coke and Pepsi are known competitors in the world of soft drinks, but have become allies given the situations they are facing in India. There are allegations of highly contaminated soft drinks, which claim to cause cancer and birth defects. An interest group in India, Center for Science and Environment (CSE) made the allegations and stated tests can verify the products contain high levels of pesticide residue (Carroll & Buchholtz, 2012, p. 649). Another special interest group, India Resource Center (IRC) raised concerns of an issue Coke experienced which is the claim of overconsumption and pollution of scarce water resources due to plant operations and production. This affected many cities and regions of the country, especially in the communities of Kerala and Mehdiganj (Carroll & Buchholtz, 2012, p. 649). In addition to the scarcity of water, there were also complaints of the water around the soft drink giant’s plants tasting and smelling bad. Donated waste to farmers for fertilizer tested positive for cadmium and lead creating toxic waste (Carroll & Buchholtz, 2012, p. 649). The allegations made by these groups were taken very seriously and believed valid because of the support of a very powerful and influential...
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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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...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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...Managerial Economics Coke vs. Pepsi: An Economic Analysis Rebecca Simmons Managerial Economics Dr Sol Drescher December 4, 2012 Executive Summary In this case study we will do an economic analysis of two major competitors; Coke® and Pepsi®. We will look at the history of these to competitive giants and discuss how they have evolved over the years to become rivals in the 21st Century. In this case study we will also look at the supply and demand of each company’s products. Coke and Pepsi are not only in the beverage business they have branched out into other arenas to continue being the leaders in their market. Both companies do business all over the world; we will also look at how they size up internationally as well as nationally. We will look at production and cost in the short run and long run by analyzing each company economically. Each company has foreta where they will be financially in the 21st Century and in this analysis we will calculate if they have forecasted close to where they are today. Management is a big part of the success of large firms such as Coke and Pepsi so we will look at the management styles of each one. By looking at management will analyze the strategic decision making of each firm and note any issues they have had in the past or present with upper management. Finally strategic decisions in oligopoly markets with regards to profit maximization is vital to the...
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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 STUDY : COLA WARS CONTINUE : COKE AND PEPSI IN 2006 The case study “Cola Wars Continue: Coke and Pepsi in 2006” focuses on describing Coke and Pepsi within the CSD industry by providing detailed statements about the companies’ accounts and strategies to increase their market share. ‘ Cola war’ is the term used to describe the campaign of mutually targeted television advertisement & marketing campaigns between Coke & Pepsi. Furthermore, the case also focuses on the Coke vs. Pepsi goods which target similar groups of costumers, and how these companies have had and still have great reputation and continue to take risks due to their high capital. Both Coke & Pepsi have segmented the soft drink industry into two divisions, via – 1.Production of soft drink syrup. 2.Manufacturing & distribution of soft drinks at retail level. Coke & Pepsi have chosen to operate primarily on the production of soft drinks syrup,while leaving independent bottlers with more competitive segment of the industry.The purpose of this report is to gain insight into the possible strategies that can be applied, in order to expand the overall throat share in the future. History revealed that a highly competitive strategy that was utilized in the past by both companies resulted in cannibalization. Because of this, the report is described from the perspective of both Coca-Cola and Pepsi. This report focuses on increasing the overall share and finding new opportunities in the unrevealed...
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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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...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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... 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 * OBJECTIVE OF THE STUDY * R.E.D. CONCEPT * PRE...
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