entering the soft drinks industry in india

Essentially, the soft-drink industry is largest beverage industry. It gross millions a year, and has different distribution channels. For example, these soft-drinks are sold in supermarket, Vending Machines, Gas stations, etc. The cost is incomparable to the amount of consumer we currently have in America. If Americans consumer on average 50 gallons in a year. The cost of 2.00 is not missed by the average person. With that said, there is a least likely chance that a person would attempt to duplicate the process at home. The soda making process is too time consuming, and inconvenient when a person can simply can go to the store to purchase. Consumers can either be very loyal to the brand or fickle. Influx in prices can make consumers switch very quickly. However, there are typically incentives associated with loyalty. There are giveaways and contest that entices the customers to keep purchasing. For example, Snapple does this with a real fact on every lid. I personally know people that will buy the product just to read the facts.

Given your assessment of the competitive situation, what are the pros and cons of (a) continuing the present market targeting and positioning strategy and (b) adopting the recommendation made by Foote, Cone & Belding? (make a comparison table of pros and cons for each approach).

For instance, batteries are marketed much the same way, and without alterations to the product across the world. Now since we are selling coffee it might be tempting to think that since coffee is enjoyed around the globe that this would be a suitable method to use. This I believe is a mistake that Friend-Z coffee house should avoid. Not all cultures enjoy coffee the same way. For this reason, it is important to use a multi-domestic strategy. When working in a foreign country, it is best to cater to local tastes. For this reason, Friend-Z needs to change their coffee shop to use local flavors and beans so as to appeal to the local culture and integrate itself into the community. With this strategy, the foreign Friend-Z coffee shop, while still adhering to the original ideas of local flavors, fast service, and warm atmosphere, will accomplish this goal differently than the original coffeehouses. Given the advantages and disadvantages of going global, the advantages outweigh the disadvantages. The point must also be made that regardless if a company decides to compete globally or not, this does not mean that that company is not facing global competition all the same. As Richard P Biggs, founder and CEO of Atlantric LLC, says in his article 10 Reasons to go International “ If you are pondering whether to go global, recognize the fact that you are ‘global’, in that you very likely have global competitors. You are in a competitive global marketplace now.”

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

Soft drink industry is very profitable, more so for the concentrate producers than the bottler’s. This is surprising considering the fact that product sold is a commodity which can even be produced easily. There are several reasons for this, using the five forces analysis we can clearly demonstrate how each force contributes the profitability of the industry.

This is an international marketing strategy that largely focuses on the commercial efforts and advertising on the benefits of concentrating on local markets rather than using global or universal approach. This, therefore, means that the company will employ work towards understanding culture of different local markets in various countries and try to enter into the studied market using the demographics in that area. The greatest effort required in this strategy is using advertising as well presentation to try and appease local sensibilities in various countries rather than applying a mass market strategy. So that this strategy can be successful it is crucial to carry out extensive research in different countries that the company hopes to invest (Leontiades, 2010). By learning how the company can be able to create a good connection with the consumers in various countries using multi-domestic strategy can assist to build a lot of tactics which can be integrated into markets that have many similarities. Learning how to closely associate with customers will also assist customize marketing and advertising efforts to match with the present local culture. Although multi-domestic strategy may be somehow expensive to employ its end result are more profitable to the company. When the company’s products are able to

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 case explains the economics of the soft drink industry. There activities that add value to consumer at nearly every stage of the value chain of the soft drink industry. The war is primarily fought between Coca-Cola and PepsiCo as market leaders in this industry; who combined have roughly a ninety percent market share in their industry. The impact of globalization on competition has allowed both of these major players to find new markets to tap which has allowed each continued growth potential.

The term ‘Glocal’ means to market globally, yet tailor the ‘message’ to appeal to local tastes. Red Bull does not follow a Glocal Marketing

India is a major manufacturer as well as a major importer of soft drink beverages. The 50 Billion soft drink market is at an annual rate of 28-30% for

3. If Coca-Cola wants to obtain more of India’s soft drink market, what changes does it need to make?

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?

Considering that soft drinks are one of the most popular drinks to a lot of people all around the world, unfortunately, a lot of them love to drink it almost every day and may not live without it. Soda becomes addictive, preventing one from drinking what the body needs the most which is water. In the market, there is a infinite amount of choices with multiple varieties of flavors, different tastes, ranges from classic soda to diet soda. However, consumers do not recognize clearly the negative effect of soft drinks that have a high chance of eroding their health away. Some of these examples include dental erosion, energy intake, obesity and other health issues. Nowadays, people live a healthy life to avoid health problems, so taxes on soft

Softdrinks,Cool drinks and Packaged Drinking water has been always a good business to do in Indian retail market because of it’s huge oppurtunities. PepsiCo is a global beverage brand that entered India during 1989. Market share of these kind of beverage company plays a vital role in evaluating the company’s position in the global/national market. Market share depends upon both the company’s performance and the competitor’s performance.Here the performance signifies the sales of the company’s products. Main competitors of PepsiCo in Tamil Nadu market are Coca-Cola and Kalimark Beverages.

Roberto Goizueta switched from localization strategy to global standardization strategy because during his initial control over the Coca Cola Company in 1980’s, the Coca Cola brand has already been marketed to more than 76 countries in the world and the subsidiaries were managed individually by the local management to match with the local taste and preference. This practice has given bad impact on the company profit as there were a lot of duplication of functions, smaller scale of production runs and too much of the customization which limits the ability of the firm to capture the cost reduction.The benefit of Global Standardization is the company will enjoy increased profitability and profit growth by reaping the cost reduction through economies of scale(produce in large quantity), learning effect (the production efficiency is improving from time to time as the worker become expert after repetitive sequence) and location economies (product’s value creation is done at the optimal location/environments). So by having the Global Standard, the product is produced at the most economic price and will create better perceived value for money spent by the customer.