2. Co-cola made an application to re-enter the Indian market through production
within an export processing zone
It would allow 25 percent to sold in Indian market rather then in export
markets
This proposal threatened the Pepsi because the name coco cola is still
remembered in India
In early 1990’s PepsiCo venture start production of snack foods
FACTS
3. PepsiCo announced that soft drink production would start soon by summer
Prime minister Singh announced that government would re-examine the
PepsiCo agreement
PepsiCo first Kentucky fried chicken in Bangalore has given protection by
police because of the threats
CONT…
4. KFC’s second restaurant in New Delhi was closed shortly because of two flies
were found in kitchen
Coke application was denied , coco cola officials to say that “ India doesn’t
follow its own rules”
Cans of coke were smuggled it from Nepal
CONT….
5. New prime minister v.p.singh took charge in minority government
As a finance minister in mid 1980’s he had promoted liberalizing FDI
After taking power he made conflicting statements about it
Because of India's strict regulations on FDI the U.S government, without
public reference to PepsiCo, threatened to impose trade sanctions on India
ANALYSIS
6. In 1991 P.V.Narisimha Roa was elected as a prime minister of inida and he
made broad changes in economy and included a more welcome attitude for
FDI
A foreign investment promotion board was established and ownership
requirements changed to allow 51 percent foreign ownership companies
CONT…
7. The new policies gave confidence to foreign investors
Coco cola reentered the market in 1993 through joint venture with Parle
exports
Three years later India authorities approved for $700 million expansion by
coco cola
Pepsi bottles were smashed
CONT…
8. In India L.P.G happened in 1991 because of P.V.Narisimha Rao
In India as every one knows corruption is more , mostly in government
sectors
No stability of government before 1991 due to death of MR. Rajiv Gandhi
Every sector is in government control
No proper vision in politicians
WHAT BEHAVIORAL FACTORS MIGHT EFFECT INVOLVING MANAGERS
AND GOVERNMENT OFFICIALS FROM INDIA AND U.S
9. U.S is far a head to us
Good vision
Less corruption
FDI allowed
Stability in government
CONT..
10. Awareness is less in people before 1990’s
Lack of technology development
GDP is low
No foreign investment due to rules and regulations of government before
1990’s
Minority , change of governments
DESCRIBE THE SOCIAL ECONOMICAL AND POLITICAL FACTORS IN
DEVELOPMENT OF BEVERAGES MARKET IN INDIA
