MBA

1. Coke & Pepsi Learn to
Compete in India
A Case Study
Vs

2. Outline
•Introduction
Political Scenario
India’s Market
•Marketing Mix
Product, Promotion, Place, Price
•Glocalization Strategy
•Lesson Learnt

3. Political Environment
•Economic Crisis – Oil Price Rise – Inflation
•Hostile to Foreign Investors for many years
•Formation of New Government
•Principle of “Indigenous Availability” widely adopted

4. Market Scenario
•Prohibition in use of foreign brand names
•Sales of soft drink not to exceed the 25 percent sales ceiling
•3 bottles – soft drink consumption per year

5. s
O
W
T
Strength
•Brand Awareness
•Early Entry
•Growing Economy
•Over 1 billion population
Opportunities
•Cultural Forces
•Political environment
•Activist Groups
Threats
Weakness
`
SWOT Analysis
•Poor preparation
•Underestimated challenges

6. Timing of Entries
Coke
Advantages
•Acquired Parle’s leading brands
Disadvantages
•Pepsi had “26 percent” market
shares already
Pepsi
Advantages
•Entered market without Coke’s
presence
Disadvantages
•Tough competition with local
brands
•Strict government regulations

8. Glocalization
Coke
•Joint Venture with Britannia
•Free Passes to Navaratri fiesta
•“Thanda Matlaab Coca Cola”
•RED Lounge
Pepsi
•Pepsi became “Lehar Pepsi”
•Navaratri Campaigning
•Bollywood & Cricket Ads
•Pepsi BLUE

9. Lessons Learnt
•Timing of Entry
•Pre-evaluation of Political & Market Scenario
•Consideration of Socio-Cultural Forces
•Think Local – Act Local