1. “India is not an easy market to understand and operate in.” Why is the Indian market untenable for Multinational Companies, yet at the same time attractive to global businesses? Discuss.
It is true that India is not an easy market to understand and operate in. MNCs have realized this the hard way as their expectations have remained unfulfilled, and many have either suffered reverses or have had to wrap up their operations. Unable to figure out the reason for their failure, they have chosen to blame the market as erratic and fickle in its behavior.
But this is not true as there is more to India than meets the eye. This country came under the global spotlight only in 1991 when it embraced economic reforms and allowed FDI. Before that
…show more content…
Therefore, Coca-Cola and Pepsi ran up loses and were unable to understand why the Indians have not taken to cola like fish to water as seems to be the case with Americans. They are, however, unable to understand that cola will never replace water which has a pride of place over all other beverages and is viewed as an elixir of life in India, not to mention the fact that the Indians are aware that cola is just carbonated water which rots ones teeth and that there is a move to ban it in the US schools–-information that the Indians have acquired from the satellite TV boom.
Similarly, when Nestle introduced iced tea in India, they were confident of their strategy which rested on the research data which pointed out that this was a country of the highest number of tea drinkers in the world and would embrace iced tea in the natural course of things.
What their strategy missed out on and what their research did not inform them was the fact that Indians like their tea hot––even on a hot summer day! They would reach out for a cold drink if they wanted something cold but it was simply alien to their conditioning and upbringing to be able to relate with the concept of having tea any other way than hot.
Hence, the global strategies don’t suit India as the nature of emerging market economies is fundamentally different from
2. By performing some research over the internet, I found out some figures that could justify the attractive of the Indian market. For instance, globally more than one billion people lack access to safe drinking water and approximately 2.4 Billion people
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
Firstly, the author introduces the history of the Coca-Cola; and how the brand is successfully developing into the most popular brand and ruling the soft drink world by outstanding products, good leadership, correct strategic decisions, completely distribution system, significant culture accomplishment, impressive marketing campaigns and publicities. But, they also had several problems in the 70s, which result in losing the market position at retail. At the same time, Pepsi, as the main competitor of Coca-Cola, started to make inroads by successfully launching the “Pepsi Generation” and “Pepsi Challenge”. Those kinds of efforts led to a rapid increase in Pepsi market share and strongly hit the brand image of Coca-Cola. Because of the severe situation, the leaders of Coca-Cola decided to change the formula of old Coke with marketing research supporting. So, the New Coke with a smoother and sweeter taste had been launched in April 1985. But out of expected, after launching the new taste soon, many customers boycotted the New Coke, and the market share of the company still decline. The company had to re-launch classic
India is one country which is developing rapidly at the moment along with China (Lal and Clement, 2005). The political, economic, social, cultural, technological and legal climate in India is extremely suitable for international entrepreneurs since business prospects in a country are heavily dependent on the above mentioned parameters. Since India is the second most heavily populated country in the world, British telecommunication company, Vodafone has enormous business opportunities in India. Mobile phone usage in India is increasing rapidly in recent times (Press Information Bureau: Government of India, 2010). A substantial portion of Indian
Selling Coke was structurally identical to religion: in a rootless population of immigrants, the Coca-Cola brand--any brand--offered the comfort of familiarity, and People love the brand, the advertises and their main goal is to bring people together(Bayley, 2015). Coca Cola have put their products in many places, India and Pakistan is one of those places. Coke strategy is done very efficiently and very smart, their market Coca cola by sending a messages to other countries, share a coke and start a healthy relationship,. Customers who want or need the benefits of the product or service will make the purchase, so coke call to the cognitive part of all of its customers. As stated Ogden, J. R., & Ogden, D. T. (2014), “ An example of a company that uses segmentation analysis isCoca Cola, there is a different segment of people for each product, People who buy Diet Coke are different from the segment that prefers Classic Coke, which is different from those that prefer Caffeine,”( section 2.5). Their main advertising is the Coke Machine. You can see that each location has people waiting to get their drink and have the opportunity to use the interactive Coke machine. This type of advertisement is not only getting new markets to buy their product but using the product to overcome adversity bringing different cultures together (Bayley,
7. What lessons can each company draw from its India experience as it contemplates entry into other big emerging markets?
As we all go about our day, we rush to place to place. Around us there are things for sale, people everywhere trying to make money. As we are rushing around, we all tend to get thirsty as we have a thousand things going on. In America we have dozens of choices when it comes to soft drinks, although the two most widely known are Coca-Cola and Pepsi. Many are often stuck between choosing Coke or Pepsi; even though they are slightly different in appearance, taste, and price it makes a world of difference to the customer.
1. To what extent is a global approach to international marketing appropriate to firms in the Asia-Pacific?
The case discusses the strategies adopted by the soft drinks and snack foods major PepsiCo to enter India in the late 1980s. To enter the highly regulated Indian economy, the company had to struggle hard to 'sell' itself to the Indian government. PepsiCo promised to work towards uplifting the rural economy of the terrorism affected north Indian state of Punjab by getting involved in agricultural activities. In addition, it made a host of other promises that made its proposal very attractive to the regulatory authorities. The case also discusses the criticisms leveled against the company, in particular, criticism of its failure to honor
The Beverage Industry in India constitutes around 230 million USD among the 65 billion USD food processing industry. The major sectors in beverage industry in India are tea and coffee which are not only sold heavily in the domestic market but are also exported to a range of leading overseas markets. Half of tea and coffee products are available in unpacked or loose form. Among the hot beverages manufactured in India, tea is the most dominant beverages that is ruling both the domestic and international market today. The supply of tea and coffee is insurmountable in the Indian beverage industry.
One big change that needs to be made is pesticide free water in the Coca-Cola products. Indians have a lot of trouble with making sure their food and water is contaminated, and things like this aren’t going to help Coca-Cola’s business because they aren’t going to want to risk their health. Indian’s need to feel safe and trustful of Coca-Cola that their products are safe for themselves. Coca-Cola made also need to use less Indian water in their products if that problem cannot be fixed. Whatever it takes for Indian’s to understand that Coke’s products are pesticide free is what Coca-Cola needs to do. The future of Coke in India is in the hands of
Soft drinks contain about 85%-99% water (The Coca-Cola Company, 2011). However, with a part of its source surrendered to India to comply with the Indus Water treaty, this has added on
Who would have known that Coca-Cola debut to the world was all because of a pharmacist? And just a touch of carbonation has truly made it a refreshing and an enjoyable carbonated soft drink. It is within “arms reach of desire” as former CEO Robert Woodruff notes. The Coca-Cola Company ultimately cares about its customers and prides itself into providing good citizenship. One of Coca-Cola’s largest international investors was India, from 1993 up until 2003, Coca-Cola invested more than US$1 billion into the country. In August of 2003, CEO of Coca-Cola India, Sanjiv Gupta came to a standstill where he had to further anticipate his next move for the company. The company faced a crisis where the Center for Science and Environment (CSE) issued a press release affirming that three samples of the 12 cold drink brands sold in and around Delhi containing pesticide residues were of Coca-Cola and PepsiCo brands.
Coca-Cola has been around for generations with the same iconic taste, logo and symbolism. Its brand has represented family and the memories of good times, celebrations and comfort of being with those we love. Unfortunately, the company has not made good marketing decisions in the recent past and has lost relevancy. The purpose of this essay is to assess the conditions that created Coca-Colas marketing problems, evaluate the future of healthy beverages and non-carb drink brand extensions, and provide recommendations to the management.
2.) Critically analyze the strategy adopted by Pepsi to sell itself to the Indian government. Do you think the biggest factor responsible for the acceptance of its proposal by the regulatory authorities was its projection of its operations as the solution to many of Punjab’s problems? Why/Why not?