Coke

Good Essays
Topics: Pepsi, Soft drink
Case 2.4 Coke and Pepsi Learn to Compete in India

BRIEF SUMMARY OF CASE CONTENT:
This is a detailed and comprehensive case describing the market entry of two global consumer product companies, PepsiCo and Coca-Cola Corporation into a Big Emerging Market (BEM), India. It traces the history of the challenges encountered by these two companies in the developing country environment of India from the late 1980s to the present time. Emphasis is placed on lessons learned by the two companies as they adjust to competing in an unfamiliar and rapidly-changing environment.

Key themes include: the effects of the changing political scene resulting in the imposition of a non-standard domestication policy on foreign direct investors; the need for foreign companies to adapt their marketing and competitive strategies to suit conditions in the Indian marketplace; and the role of ‘glocalization’ policies across the marketing mix variables, but particularly in the case of promotional strategies.

PEDAGOGICAL OBJECTIVES:
Students are often told that Coca-Cola and Pepsi are leading exponents of globalized marketing. This case invites students to reflect on changes that the two companies have had to make to their global marketing policies as a necessary response to specific environmental factors in the Indian market, resulting in use of glocalized marketing strategies. This case reflects Cateora and Graham’s focus on the need for detailed environmental analysis and appropriate marketing response.

The title of the case – “Coke and Pepsi Learn to Compete in India,” indicates that both companies encountered difficult and unexpected situations in India that rendered competition difficult and challenging, despite the global marketing expertise that both companies brought to this market.

VALUE OF THE CASE:
Students are presented with an objective account, told in retrospect, of market entry into India by two giant marketing companies. Details of the local market

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