Coke and Pepsi Marketing Analysis
Case 3 Assignment: Coke and Pepsi
Identification of the strategic issues and problems-
The world’s two largest soft drinks, Pepsi and Coca-Cola experienced numerous unexpected problems and difficulties, leading them to learn that marketing and competing in India requires a special type of knowledge and local skills to become successful. Working in America is not always going to be similar as working overseas.
Analysis and evaluations-
Strengths- Pepsi had an early entry, since they entered before Coca-Cola and got a 26% market share by 2003, making them easier to differentiate from local products. Pepsi had an aggressive price, but used a TV campaign promotional approach, using sports and celebrities. Coca-Cola acquired Parle’s leading brands such as Thumbs Up, Limca, and Citra.
Weaknesses- Coca-Cola should have been more careful with the promises they made. They entered the market at the wrong time while trying to expand investment. The Indian government allowed acquisition only if they agreed to sell 49% of equity within two years.
Opportunities- Pepsi-Cola International changed their brand name in India, as directed by the Indian government, to Lehar Pepsi because they wanted to make sure they got an early entry while the market was developing. Pepsi formed a joint venture with two local partners. Pepsi’s advertising was held during the cultural festival of Navrartri. Pepsi also had the sponsorship of famous Indian cricket and soccer players known globally. On the other hand, Coca-Cola formed a joint-venture with the local leader. Coca-Cola hired several famous Bollywood actors to endorse their products and used a strategy of “building a connect using the relevant local idioms.”
Threats- India was in economic depression triggered by the rise in imported oil prices following the first Gulf War. The Indian government was viewed as unfriendly to foreign investors. Coca-Cola and Pepsi were also competing with the noncarbonated fruit drinks beverage
Identification of the strategic issues and problems-
The world’s two largest soft drinks, Pepsi and Coca-Cola experienced numerous unexpected problems and difficulties, leading them to learn that marketing and competing in India requires a special type of knowledge and local skills to become successful. Working in America is not always going to be similar as working overseas.
Analysis and evaluations-
Strengths- Pepsi had an early entry, since they entered before Coca-Cola and got a 26% market share by 2003, making them easier to differentiate from local products. Pepsi had an aggressive price, but used a TV campaign promotional approach, using sports and celebrities. Coca-Cola acquired Parle’s leading brands such as Thumbs Up, Limca, and Citra.
Weaknesses- Coca-Cola should have been more careful with the promises they made. They entered the market at the wrong time while trying to expand investment. The Indian government allowed acquisition only if they agreed to sell 49% of equity within two years.
Opportunities- Pepsi-Cola International changed their brand name in India, as directed by the Indian government, to Lehar Pepsi because they wanted to make sure they got an early entry while the market was developing. Pepsi formed a joint venture with two local partners. Pepsi’s advertising was held during the cultural festival of Navrartri. Pepsi also had the sponsorship of famous Indian cricket and soccer players known globally. On the other hand, Coca-Cola formed a joint-venture with the local leader. Coca-Cola hired several famous Bollywood actors to endorse their products and used a strategy of “building a connect using the relevant local idioms.”
Threats- India was in economic depression triggered by the rise in imported oil prices following the first Gulf War. The Indian government was viewed as unfriendly to foreign investors. Coca-Cola and Pepsi were also competing with the noncarbonated fruit drinks beverage