Coke & Pepsi Learn to Compete in India

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Coke and Pepsi Learn to Compete in India
CASE STUDY 2
International Marketing

1. The political environment in India has proven to be critical to company performance for both PepsiCo and Coca- Cola India. What specific aspects of the political environment have played key roles? Could these effects have been anticipated prior to market entry? If not, could developments in the political arena have been handled better by each company?

There are several specific aspects of the political environment, such as the principle of “indigenous availability”. Which was very difficult to trade and also establish the rules and the regulation. Secondly, it was forbidden the use of foreign brands in India.
But, since 1991, the liberalization of India’s
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Should Coke address the group directly or just led the furor subside?

The most harmed enterprise was Coke Company, but why?
Because it enter in the market at the wrong time, obliging it to a hard competition with Pepsi. Another reason is that it has to sell almost the 50% of their equity to expand itself and other bureaucratically aspects like deny of the upcoming Indian shareholders voting rights.

6. Which of the two companies do you think has better long- terms prospects for success in India?

In the long term prospects, Pepsi will fare better because of its better marketing and advertising strategies, more widely accepted and more market share.

7. What lessons can each company draw from its India experience as it contemplates entry into other big emerging markets?

PEPSI
Beneficial of pay attention to market trends and to keep with local tastes. Celebrities appeal makes for exceptional advertising. And finally it pays to keep up with merging trends in the market.
COCA- COLA COMPANY
It pay specific attention to deals made with the government, establishing a good relation. And also he investment in quality products.

8. Comments on the decisions of both Pepsi & Coke to enter the bottle water market instead of continuing to focus on the core products- carbonated beverages and cola- based drink in particular.

They decided because it was a rising market and also the high demand it was. So that market was

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