Coke And Pepsi Learn To Compete In India:
Coke And Pepsi Learn To Compete In India Prepared By- Dhwani Shah Megha Jagtap Parth Purohit Rohan Mehta Paras Charan Mochan Bhola
Background of Beverage Industry in India:
Background of Beverage Industry in India Coca-Cola’s past in India Present from 1958 until 1977 Industry Shakeup in 1988 State of the Industry in 1993 45% of market consisted of small manufacturers $3.2 million market share Low Demand for Carbonated Drinks 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:
Coco-cola and Pepsi Co enter the Indian market Pepsi entered into the Indian beverage market in July 1986 as a joint venture with two local partners, Voltas and Punjab Agro, forming “Pepsi Foods Ltd.” 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.
Fast Forward to the new Millennium:
Fast Forward to the new Millennium Seasonal Sales Promotions – the 2000 Navratri Campaign- ‘ Thums Up Toofani Ramjhat ’, with 20000 free passes issued, one per Thumps up bottle. On-site activities, ‘buy one-get one free’ and lucky draw scheme like win the trip to Goa. PepsiCo telecast ‘ Navratri utsav 2000 at Mumbai’. People enjoyed a mega offer of getting one kilo of basmati rice free with 300 ml bottle.
Cont. The 2002 Summer TV Campaign- “keep it cool” the new slogan came up for the new category of 7UP. Focused on objective on growing the category and building brand salience.
Cont. Pepsi’s Sponsorship of cricket and football- Launching of new ad campaign featuring the batting sensation, Mohammad Kaif . Spot light has been on Sachin Tendulkar and Amitabh Bachchan . 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.
Cont. Coca-cola’s lifestyle advertising- 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.
A New Product Category:
A New Product Category Several producers have launched their own brands in a new category. Coke brand Kinley was introduced in 2000. Captured 28% market in 2002 Currently, 40% share is with Bisleri of parle, 11% of Aquafina of Pepsi and other brands too.
Coca Cola’s Attempt to “Crack” Indian Market:
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:
The Second Gulf War During 2003, due to iraq war, an All-India Anti-Imperialist Forum to boycott purchase of A merican and B ritish goods for “unjust war “. Led to decrease 50% in southern States through ‘shop-to-shop’ campaign
Learning Some Hard Lessons:
Learning Some Hard Lessons 3 Years cost cutting programs bought dramatic results. Local purchasing policies bought 57%...
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