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Coke And Pepsi Learn To Compete In India Prepared By- Dhwani  Shah	MeghaJagtap	 Parth  Purohit Rohan  Mehta	ParasCharanMochanBhola
Background of Beverage Industry in India ,[object Object],Present from 1958 until 1977 ,[object Object]
State of the Industry in 199345% of market consisted of small manufacturers $3.2 million market share ,[object Object],Average of 3 servings a year/person in 1989 Average of 1404 servings a year/person in U.S. in 2003
Coco-cola and  Pepsi Co enter the Indian market ,[object Object]
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.
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).
In this article, I will analyze the primary obstacle to Pepsi and Coca-Cola’s success, discuss their strategies to cope with the issue, and ultimately propose my own suggestions to improvement.,[object Object]
On-site activities, ‘buy one-get one free’ and lucky draw scheme like win the trip to Goa.
PepsiCo telecast ‘Navratriutsav 2000 at Mumbai’.
People enjoyed a mega offer of getting one kilo of basmati rice free with 300 ml bottle.,[object Object]
Focused on objective on growing the category and building brand salience.,[object Object]
Launching of new ad campaign featuring the batting sensation, Mohammad Kaif.
Spot light has been on SachinTendulkar and AmitabhBachchan.
PepsiCo had capitalize team’s overall performance for world cup cricket held in South Africa.
Introduction of new product – ‘icy blue cola’, was marketed nationwide as Pepsi blue.,[object Object]
Used a strategy ‘building a connect using the relevant local idioms’.
The campaign slogan was ‘ Thanda Matlab Coca-cola’, which focused on the youth.
Coca cola’s specific marketing objectives for 2003 were to grow the per capita consumption of soft drinks in rural markets, and to capture a larger share in the urban market from competition and increase  the freq of consumption.,[object Object]
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.
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
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.
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.
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…
[object Object]
Pepsi became “Lehar Pepsi”.
Coca-Cola merged with Parle and became “Coca-Cola India”.
Different Laws for Pepsi and Coke
Coca-Cola agreed to sell off 49% of its stock as a condition of entering and buying out an Indian company.
Pepsi entered earlier, and was not subject to this.Contd…
[object Object]
Coke asked for a second extension that would delay it until 2007 which was denied.
Pepsi was held to this since they entered India in a different year.
Coke asked the Foreign Investment Promotion Board to block the votes of the Indian shareholders who would control 49% of Coke.
Change in oversight of the FIPB:
Past lobbying efforts made useless.Contd…
[object Object],Probably not Inconsistent, and changing government. ,[object Object],Coke could of agreed to start new bottling plants instead of buying out Parle, and thus wouldn’t of had to agree to sell 49% of their equity.
Answer-2

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