Pepsi & Coke India

Topics: Coca-Cola, Pepsi, PepsiCo Pages: 2 (412 words) Published: March 7, 2011
2- The early entry to the Indian market by PepsiCo had its disadvantages because at that time government policies over foreign companies was harsh such as aggressive pricing policy, struggling to fight off local competition but the only advantage that they were there first before Coca-Cola. The reentry of coca-cola in the market had its disadvantages and of course that was Pepsi co was there first their applications was approved and coke was turned down.

3- Coca-cola made special promotions during the summer season such as ”buy one- get one free” and lucky draws. Coca –cola used a strategy of “building a connect” by using local idioms. They also reduced prices by 15% to 25% in order to encourage consumption. Pepsi co participated through massive sponsorships of “garba”, they also tied up with a national TV channel. There was a mega offer with every refill of 300 ml consumers will fetch one kilo of basmati rice free. Consumers too get reduced prices at selected stores. Pepsi co was generous too in their give away such as free candies with every 1.5-liter. They also sponsored the cricket and football games.

4- Coca- cola by using the strategy of “building a connect” using local idioms such as “ Bombay Dreams” Ad featuring a famous Indian music director. Pepsi co by sponsoring cricket and football games their Ads featured famous cricket players and movie stars.

5- The Indian government policy forced Coca- cola into mistakes in the planning and managing their operations such as forcing the company to buy out local Indian bottlers when the company first entered the market, instead of setting up green field bottling plants which put the company later on through law suits, on top of that the government changed their rules too. Lets not forget the fact that the second gulf war affected both companies by the boycott of their American products. Coca – cola made a mistake by denying voting for Indian stakes, they where destroying their relation ship with the...
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