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Coke and pepsi compete in india
Coke and pepsi compete in india
Coke and pepsi compete in india
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Coke and Pepsi Learn to Compete in India
Section 1:
During the 1900s and the beginning of the new millennium India’s government had opened its doors wide open to foreign investors, but the Coca-Cola Corporation and PepsiCo experienced many difficult challenges. Both companies were engulfed with unexpected problems and difficult situations that led to the recognition that India’s market was very different and special knowledge, skills and local expertise was needed to be obtained if the two companies were to succeed. As Ronald McEachern, PepsiCo’s Asia chief, stated, “India is the beverage battlefield”.
In 1991, India was in an economic crisis that was triggered by the rise in imported oil prices following the first Gulf War. During this crisis, foreign exchange reserves fell, imports were more tightly controlled, industrial production fell, and inflation was continuously rising. Led by Prime Minister Narasimha Rao, dramatic measures were put in place to stabilize the economy for the short term. By 1994, inflation was halved and foreign investors viewed India as a leading Big Emerging Market. Foreign Investment also increased dramatically following the New Industrial Policy which dismantled complicated trade rules and regulations.
Coca-Cola also entered India as a joint venture but later petitioned to create a one hundred percent owned company, Coca-Cola India. Coca-Cola’s entrance caused a major threat to the small producers. As a result, many individual local producers tried to align themselves with Coca-Cola, which later turned into a joint venture between Parle and Coca-Cola.
In India, there are two main high seasons for the consumption of soft drinks. First being the summer session which lasts about seventy-fi...
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...minds of the world’s consumers.
Coca-Cola India has made significant investments to build and continually consolidate its business in the country, including new production facilities, waste water treatment plants, distribution systems, and marketing channels.
The Company has shaken up the Indian carbonated drinks market greatly, giving consumers the pleasure of world-class drinks to fill up their hydration, refreshment, and nutrition needs. It has also been instrumental in giving an exponential growth to the country’s job listings.
With virtually all the goods and services required to produce and market Coca-Cola being made in India, the business system of the Company directly employs approximately 6,000 people, and indirectly creates employment for more than 125,000 people in related industries through its vast procurement, supply, and distribution system.
Coca Cola is more interested in penetrating all markets and is willing to invest heavily in areas that will support distribution to emerging markets like South Africa. Coca Cola does this by establishing bottling plants as close to their consumers as possible. This puts the production and distribution (and jobs) directly in the hands of the local territories; this allows communities to be invested in the success and distribution of Coca Cola. As an example; in South Africa they have the first all-Black managed bottling plant which has won Coca Cola a tremendous amount of respect and continues to perpetuate brand loyalty in that region. This Model has allowed Coca Cola to expand to 56 countries with 160 plants alone on the African
One of the Coca-Cola Company’s strongest strengths lies in its ability to conduct business on a global scale while maintaining a local approach, one of the most intelligent strategies thought up by the human resource department of Coca-Cola.
It was seen that, group of respondents (age group of 31-40 yrs mostly) said that they are becoming health conscious day by day and they prefer Minute Maid more now, whereas earlier they liked ThumsUp, which means that this group of customers prefer Non-Aerated health drinks. Since, Coca-Cola does not have many varieties in this category, so they should now target the health conscious audience and venture into “Healthy non-aerated beverages category”.
Therefore, the long-term brand of Coca cola and better pricing strategies would help in competing with Pepsi. Unlike, Pepsi, Coca cola had targeted entering into partnership and alliances with local distributors and firms. This helps to develop strong relationship within the domestic firms to reduce the domestic barriers and thus, enhance the company’s competitiveness (Thabet, 2015). Lastly, the Asian markets consist of related and supporting industries to the soft drink industry that helps the companies in gaining a strong competitive position in the markets. Based on the competitive advantage of nation’s model, Coca cola has more home based advantages to develop a competitive advantage in relation to other countries on a global
By investing in India, PepsiCo is willing to show that they have confidence in its future, and its potential to sell Pepsi based drinks and snacks. PepsiCo which has received over $16.91 billion in total revenue because of out of U.S market sales. Have been trying to commercialize their products around the world in order to beat Coca-Cola in being the number one food and beverage company. So this particular investment may be what they need in order to finally ...
CASE 1-3: Coke and Pepsi Learn To Compete in India The political environment in India proved critical in that their government was unfavorable to foreign investors. They prohibited the import of soft drinks since they felt it could be gotten anywhere. They also prohibited the foreign brand name and wanted the name Lehar Pepsi and Coca-Cola India, an indigenous name. These effects couldn’t have be anticipated prior to entering the market because the trade policies, rules and regulations of India were difficult and unpredictable.
... objects and customer regions. Do making a clear differentiation image between its soft drinks and bottled water. Because the consumers may believe that bottled water of Nestle sounds healthier than Coca-Cola brand since Nestle tend to emphasize their image on healthy food products. Then do market test for new taste, new packaging, or new innovation according to each regions, and especially for Europe, the company should launch the new one to replace Dasani image in order to seize their market shares. They may renew all nutrients and packaging. Finally Coca-Cola should continue its joint ventures with the regional companies in order to protect their products from barriers to entry both international trade restrictions and distribution channels. Furthermore, joint venture with local brand is a long term contract guarantee to make it easier for HOD to a specific region.
Secondly this article discusses in regards to the opening of foreign investments in India and the on how companies compete in the Indian market place with the help of Coke & Pepsi case study and the Fair and Lovely case study.
And Generation ‘Now’ is as much inclined to sipping fruit juices as colas, with teenagers driving the maximum trials. Fruit juices have created a space for themselves in regular household menus, as a part of a family’s breakfast, social gatherings, and evening snacks. For Indians drinking juice is not a new concept. Street corner vendors have been popular for years. Fruit juices in the unorganized segment are considered cheaper and fresher by the consumers, even though they are relatively unhygienic. As a result, consumers are picking up multiple family packs at one go, which is an emerging consumption
Although produced by main market players, soft carbonated drinks cost more than similar products from local and private label manufacturers, consumers are willing to pay an extra price for the name, particular taste, and image. Fierce competition in the CSD industry forces Coca-Cola and PepsiCo to expand into new and emerging markets which present high potential for the company’s development. However, some foreign markets proved to be highly competitive. Coca-Cola Company’s operations in China faced antitrust regulations, advertising restrictions, and foreign exchange controls. iii.
The Coca-Cola Company is global well known company. The Company re-entered Indian markets in year 1993. The company had to leave earli...
This proven track record for the company can be attributed to a number of factors, the first which is relatively crucial is the company's secret formula for Coca-Cola, which comparably tastes better than what competition has to offer in the market. The company's ability to come up with new products while at the same time reinventing the old products has offered them a competitive edge over their peers. The company boasts of having the world's most diverse and comprehensive distribution networks, this offers them accessibility to billions of people in areas that would prove rather difficult for their peers to distribute their products. The African continent has been cited as an excellent example, it is more often than not to see a distribution outlet for coke on a remote location on the continent
PepsiCo is one of the most recognized names in the snack and beverage industry, with brands like Frito-lay, Gatorade, Tropicana, and Quaker, however, it is best known for its flagship soft drink brand - Pepsi and its rivalry with Coca-Cola. To begin, PepsiCo first caught my Interest in the way it manages its business and markets its products. PepsiCo being a relatively young company compared to its rival Coke, has proven to be a formidable opponent going “head to head” with one of the biggest companies in the world (Coca-Cola). Now, when I notice PepsiCo’s growth, the first thing that came to my mind was that it is thanks to its great marketing campaigns, that Pepsi has grown to become the globally recognized brand that it is today. I also admire PepsiCo because I think the there is a high level of entrepreneurship in the way they acquired smaller brands like Gatorade thereby eliminating their competition before they become competition.
The case study "Cola Wars Continue: Coke and Pepsi in the Twenty-First Century" focuses on describing Coke and Pepsi within the CSD industry by providing detailed statements about the companies’ accounts and strategies to increase their market share. Furthermore, the case also focuses on the Coke vs. Pepsi products which target similar groups of customers, and how these companies have had and still have great reputation and continue to take risks due to their high capital. This analysis of the Cola Wars Continue case study will focus mainly on the profitability of the industry by carefully considering and analyzing the below questions. Why is the soft drink industry so profitable? Compare the economics of the concentrate business to the bottling business: Why is the profitability so different?
Coke Facts The Coca Cola Company Coca Cola India: Key Facts - Coca Cola Business, website: http://www.cokefacts.com/facts/facts_in_keyfacts.shtml