Question 3: The Indian market is enormous in terms of population and geography. How have the two companies responded to the sheer scale of operations in India in terms of product policies, promotional activities, pricing policies, and distribution arrangements?
Although India is known as the enormous size of population, entering the market by foreign companies such as Pepsi and Coca-Cola did not seem easy, as carbonated drinks were not popular at all. However, both companies managed to expand its market to India by applying Joint Venture strategies. Pepsi was known as Pepsi Food Ltd., partnering with two local partners, Votas and Panjab Agro. Coca-Cola was known as Britco Food, and also joined with the Britannia Industries India, a local producer of snack foods. Furthermore, both companies applied the marketing mix (4P) to fit Indian market as the followings; Product policies
Pepsi – In order to penetrate local tastes, Pepsi foods launched Lehar 7UP in the clear lemon along with Lehar Pepsi. To complete with local brand such as the big company like Parle, Pepsi launched two more brands, Slice and Teem in order to gain more market shares, which was 26 percent at that time. The feature of bottles also encouraged consumers to purchase frequently. Pepsi introduced a smaller-size bottle, 200-ml bottle, in the market where everyone else offered 250-ml, 300-ml, and 500-ml bottles. Products lines had been added such as Mirinda Lemon, Apple, and Orange in 200-ml bottles. To cope with the decline in soft drink sales, PepsiCo launched a water bottle, Aquafina, in order to add more choices and attract non-carbonated drinkers. Apart from water, and soft drink, PepsiCo focused on fruit juices, juice-based drink, and especially Gateorade since consumers have become more self-consious. Coca-Cola – Its main product soft drink lines are Coke, Thums Up, Limca, Sprite and Fanta. However, Coca-Cola also introduced the “Mini” versions to boost up the volume of soft drink sales....
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