Coca-Cola vs. Pepsi in India: The Battle of the Bottle ContinuesPrepared By: Chetan Panara Kapil Rajput Pranay Chauhan Kaushal Dhakan Jay Ajudia Kulvinder singh Dhalliwal
Industry Background• 1956 Pepsi Co. Introduced in India• 1961 Pepsi withdrawn from India• 1977 Coca-cola withdrawn from India because of some political and other reason• Parle have more than 60 % of market share• Parle’s product: Thums-up, Gold-spot, Limca, Citra, Maaza and frooti• Duke’s and Spencer was small competitor of Parle
Cont….• Pepsi come again in 1986• Pepsi launched its product in 1991• Coca-cola returned to India in 1993• Ramesh chauhan sold Parle’s soft drink to coca-cola• After acquiring Parle’s soft drink coca-cola seat on the 60 % market share in India
Indian Soft Drink Industry• Production:4000 Million Bottle• Value:32 Rs. Billion• Per Capita consumption:5 Bottle per annum• Market Growth:12• 40 % of sales happening in the four summer months April to July• There are 100 bottling company in India• Coca-cola have 53 franchises and few company owned bottlers• Pepsi had about 15 owned and 11 franchises
Industry Analysis: Five force Model• Suppliers: Bottlers:- Bargaining power was less as order was placed in advance Sugar:- Complex law structure in India. Quality was not consistent(Suppliers bargaining power was high) CO2:- Supply was good bargaining power was less Water:- Local supplier were used Bargaining power was less Buyers: Institutional buyer:-Has high bargaining power Retail outlet;- Have less bargaining power
Cont..• Entry Barrier Lack of availability of base facilities• Substitutes Onjus juice Real from Dabur Limca Jumpin Packed water• Competitor Duopoly
Coca cola Strength: Fairly powerful in each segment Innovative product One of the top five brands around the globe Large scale of operations Strong brand names Good reputation among customer Weakness: Unable to control external environment Promoting their own brand vigorously Non-cola brand generally weak
Pepsi Co• Strength: – From very beginning Pepsi chose to adapt to Indian needs and preferences – Control over bottling operations – Good network of well trained sales person – Favorable access of distribution channel• Weakness: – Pepsi positioned its cola drink clearly as the youth and fun drink but its other brand was less – Manufacturing and labor problems
Strategic Question facing coca-cola India• Logistic system
Recommendations• Acquire more local brands• Try to give more importance to Thumps up rather than its own brand• Become more aggressive like Pepsi• They needed to do more and better training for their salespersons
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