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Coke and Pepsi Learn to Compete in India: Case Analysis 1 By: As both companies would soon discover, "competing in India requires special knowledge, skills, and local expertise…what works here does not always work there.
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.
First, despite the liberalization of the Indian economy in and introduction of the New Industrial Policy to eliminate barriers, such as bureaucracy and regulation to foreign direct investment, India still had a strong history of protectionism, dating back most recently to its economic policies following the Gulf War.
India's past promotion of "indigenous availability"1 depicts its affinity toward local products. In fact, the idea of protectionism in industries where India had a comparative advantage can be seen as early as the 's.
Britain and India used "discriminating protection" to ward off German and Belgian competitors in the steel industry. Due to India's suspicion of foreign business stemming from past history, both Pepsi and Coca-Cola received alien status upon entry to the Indian market.
Also, foreign businesses were not allowed to market their products under the same name if selling within the Indian market. Augustine said, "an unjust law is no law at all.
Lack of solid institutions gives way to corruption. Coke and Pepsi's Controls Due to the external nature of the political and legal environment of operating in India, much of the problems were out of Coca-Cola and Pepsi's control.
Even if the two were to have performed a more extensive environmental analysis, many of the problems would not have been forecasted. Government situations are dynamic and inconsistent where there is not a strong foundation of law.
Thus, Pepsi and Coca-Cola focused on the following controllable aspects3: Pepsi introduced returnable glass bottles for customers to recoup costs.
Coca-Cola and Pepsi launched different product lines to appeal to the Indian consumer tastes. They started with product lines that were already available, such as cola, fruit drinks, and carbonated water. Then, when the market was "ready", they launched other lines, such as bottled water Coke- Kinley and Pepsi-Aquafina and clear lime sodas Coke-Sprite, Pepsi-7 Up.
Both Coca-Cola and Pepsi adapted to the local market with promotions. They promoted heavily during the Navrarti festival.
Pepsi gave away a kilo of Basmati rice with every refill of a case of Pepsi. This is an effective strategy to blend the old rice with the new Pepsi.
Coca-Cola gave away vacations to Goa, a famous resort in India. Further, they teamed up with influential figures in Indian pop-culture to promote their products.
Pepsi launched an ambitious marketing campaign sponsoring Cricket celebrities and athletes from the World Cup. Coca-Cola launched its Lifestyle Advertising Campaign as a method of building brand loyalty among its target markets:Case Summary.
Coke and Pepsi had a tough time getting into the beverage market in India. However, the venture seemed to be well worth it, since in about 45 percent of the soft drinks industry consisted of small manufacturers and the business was worth million dollars.5/5(1).
COKE AND PEPSI LEARN TO COMPETE IN INDIA Brief Overview: * 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 * Pepsi entered into the Indian beverage market in July as a.
COKE AND PEPSI LEARN TO COMPETE IN INDIA Brief Overview: * 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.
Coke and Pepsi Learn to Compete in India 1.
CASE STUDYCoke and Pepsi Learn toCompete in IndiaGroup #6Abigail Yoong (exch.)Alexey Abramov (MM-1)Ivan Ulitin (MM-3)Julia Borshkova (MM-1)Julia Gorokhova (MM-1)Zoya Shakhova (Mark).
Case Study: Coke and Pepsi Learn to Compete in India. The political environment in India has proven to be critical to company performance for both PepsiCo and Coca-Cola India.
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.