Questions on Coke and Pepsi Learning to be competitive in India

1. The politics environment in India has proven to be critical to company performance for both PepsiCo and Coca-Cola India. What Specific aspects of the politics environment have played key tasks? Could these results have been predicted prior to market tasks? If not could improvements in the politics arena have been treated better by each company?

Ans The main element specific areas of the politics environment have India seen as unfriendly to international investors for quite some time, The "Theory of Indigenous Supply" (Policy banning imports for sale in India), The Liberalization of India's Authorities in 1991("New Industrial Coverage", Trade rules & regulations simplified, Overseas investment increased), Pepsi gets into in 1986 became "Lehar Pepsi", Coca-Cola comes after in 1993 became "Coca-Cola India". These results couldn't have influence to market role. Coke can have agreed to begin new bottling plants instead of buying out Parle, and therefore wouldn't have had to consent to sell 49% of the equity.

2. Timing of entrance in to the Indian market helped bring different results for PepsiCo and Coca-Cola India. What benefits or drawbacks accrued because of this of previous or later market accessibility? Ans Pepsi >> Advantages - Came into the market Before Coca-Cola and could gain a foothold on the market while it was still growing. - Gained 26% market share by 1993

Disadvantages -Were pressured to change their name to Lehar Pepsi -Govt. limited their soft drink sales to significantly less than 25% of total sales

Coca-Cola >> Advantages -Were in a position to buy 4 bottling vegetation from industry innovator Parle -Also bought Parle's leading brands: Thums Up, Limca, Citra, Yellow metal Spot, Mazaa

Disadvantages -Refused accessibility until 1993 because Pepsi was already there -Harder to establish market tell Pepsi there

3. The Indian market is tremendous in terms of population and geography. How have both companies taken care of immediately the sheer level of operation in India in conditions of product policies, promotional activities, pricing policies, and circulation arrangements? Ans Product plans >> - Entering with products near those already available in India such as colas, berries refreshments, carbonated waters, Coca-Cola launching Sprite lately, and Introducing new products is water in bottles. Promotional activities >> - Both advertise and use promotional material at Navrartri are Pepsi provides away premium grain and candy with Pepsi and Coca-Cola offers free goes by, Coke giveaways as well as vacations. Pricing plans >> - Pepsi started out with an intense pricing policy to try to get immediate market show from Indian rivals, Coca-Cola slice its prices by 15-25% in 2003. Distribution arrangements >> - Creation vegetation and bottling centers located in large metropolitan areas all around India, More added as demand grew so when new products were added.

4. "Global localization" (glocalization) is a policy that both companies have carried out successfully. Give examples for every company from the case.

Ans Pepsi - Commensurate with local tastes, Pepsi launched its Lehar 7UP in the clear lemon category. - In 1990, Pepsi Foods Ltd. changed the name of their product to "Lehar Pepsi" to conform with international collaboration guidelines. Coca Cola - For the happening of Navrartri, Coca-Cola issued free passes to the celebration in each of its "Thums Up" containers. -Also ran special special offers where people could succeed free trips to Goa, a resort state in european India.

5. How can Pepsi and Coke confront the problems of water use in the manufacture of their products? How can they defuse future boycotts or presentations against their products? How effective are activist groupings like the one which launched the plan in California? Should Coke dwelling address the group immediately or maybe let furor subside?

Ans The Company confront that pesticides were within the groundwater in India and found their way into food products generally speaking "compared pesticide levels in soft drink are negligible". I think they can demonstrations against their products. After all of the bad press Coke got in India above the pesticide content in its soft drinks, an activist group in California launched a marketing campaign directed at U. S. college campuses, accusing Coca Cola of India of using treasured groundwater, lacing its beverages with pesticides, and delivering farmers with toxic waste material used for fertilizing their plants. Then Coke should talk about the group immediately.

6. Which of both companies do you think has better long-term potential customers for success in India? Ans In my opinion, Pepsi because Pepsi has better advertising strategies, more widely accepted and more market talk about than Coca cola.

7. What lessons can each company get from its Indian experience as it contemplates access into other Big Growing Markers?

Ans Pepsi's lessons found that are advertising is performed during the ethnic festival, beneficial to keep with local preferences, market trends, Super star appeal produces exceptional advertising, and It will pay to keep up with emerging movements on the market. Coca-Cola's lessons found that are establish special promotions where people could win free getaways and Coca-Cola know about must have been more careful of when they inserted the marketplace what they were appealing when they entered, pay specific attention to deals made out of the federal government and advertising is vital.

8. Comment on the decision of both Pepsi and Coke to type in the bottled water market rather than continuing to give attention to their central products carbonated beverages and cola-based refreshments in particular. Ans In my estimation, Pepsi and Coke have good strategy because nowadays the bottled water is growing quicker of drinking water market.

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