Coke and Pepsi Learn to Compete in India

Despite this India is still a complicated place for foreign investors. A weak parliamentary government has very little purview over the provincial and local ministers who were elected entirely separate from federal elections. The fragmented nature of the country’s political system has and will continue to prevent major

Attracting foreign capital (Indian government encouraged foreign investment) for new ventures. Foreign investors feel more comfortable working with a reputable party. Appendix 7 provides evidence of this (e.g. ventures with IBM, AT&T, Bell Canada).

It wants it’s employees to not only work but to have fun along the way and make it a great place to work where employees are inspired and motivated to bring the best out of them. Coca-Cola also values the health and well being of it’s employees and provides a wide range of employee development programmes for them to excel in their career. The company believes in transparency and free flow of ideas for which many forums like Breakfast meetings with CEO and President, Konversation every quarter and Bi-annual employee town hall meetings have been introduced.

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.

Coca Cola and Pepsi are the brands with the highest brand equities. Both, Coca Cola and Pepsi have gone through the highs and lows of their business to reach that position. Coca Cola’s marketing has been changing over time with more and more products being added every day, while Pepsi has implemented several smart marketing strategies to improve its turnover and profits. So, let’s see what were the marketing strategies implemented by Coca Cola and Pepsi.

big market share, such as Pepsi Cola, Mt.Dew, and so on. I like to drink Coke

Coca Cola is bestselling soft drink in the world. It has introduces various product like sports drink, water, juices, sparkling beverages and energy drinks. It has gone through several innovations from products to packaging. In May 1886 Coca Cola was invented by Dr. John Pemberton, a pharmacist from Atlanta, Georgia, registered trademark in US as Coke since 1944. Company sells its product at gas station, supermarket, vending machines and at most fast food restaurants like Mc Donald and Subway. Its widely availability has made its customer’s first choice leading to brand loyalty.

Protectionism, especially in scenarios with continued high unemployment and economic malaise; India exploits scrutiny of India’s own restrictions on inward foreign investment. The rules are particularly tough on foreign investment in banks.

3.How did the company react to the changes in the business environment after the liberalization of the Indian economy in the early 1990s? Critically comment on the allegations that Pepsi deliberately did not adhere to most of

1. What aspects of U.S. culture and of Indian culture may have been causes of Coke’s difficulties in India?

This is to certify that the dissertation titled “ International conflicts of Indian companies: Case study of Maruti Suzuki and Mahindra and Mahindra” carried out by Ms. Jyoti mahajan ,D/o S.Vinod kumar has been accomplished under my guidance & supervision as a duly registered M-com (hons) student of Guru Nanak Dev university, Amritsar. This dissertation is being submitted by her in the partial fulfillment of the requirement for the award of master of commerce from GNDU.

In 1991 the administration of India permitted outside makes to enter in the India soft drink industry. Therefore Pepsi went into the business in 1992. After a long stretch coke re-entered the India market on 22nd July 1998. Its achieve presentation was quest for planned accomplice to build up a joint endeavor in India. The point of interest Pepsi having over its archival

Coca cola should enhance the relationship with the government. Strong government relations are important in India and give them an opportunity to communicate all the benefits and investments they provide to the economy.

1.) Why do companies like Pepsi need to globalize? What are the various ways in which foreign companies can enter a foreign market? What hurdles and problems did Pepsi Face when it tried to enter India during the 1980s?

Long before now has branding been considered as one of the peripheral aspects of business. Manufacturers, investors and other key players focused on the product without paying much attention to the consumer. But as the business landscape got tougher, marketing became not just an integral part of business but one of the fundamental principles of success.