case study on coca coal and htc

1. Case studies

3.  Coca-Cola, deemed the “#1 Brand in the World,”
has been a successor in the soft drink industry for
over 100 years. Along with their success they
have incurred crises along the way. One in
particular is the Coca-Cola India Case Study. On
August 5, 2003, Coca-Cola India was attacked by
The Center for Science and Environment (CSE),
for unsafe products, said to contain pesticide
residues which surpassed global standards.

4.  Coca-Cola India’s products were attacked in a
press release stating: “Twelve major cold drink
brands sold in and around Delhi contain a
deadly cocktail of pesticide residues.” The tests
done on three samples of 12 PepsiCo and
Coca-Cola brands were said to contain 30-36
times the global standards of pesticide residue.
The pesticides found were known to cause
disease such as cancer, birth defects, and
severe disruption of the immune system, among
other health conditions.

5.  Because of the attacks by the CSE and NGOs
(Non-Governmental Organizations) on Coca-
Cola,the brand faced many challenges. First,
being the world’s most valuable brand whose
value is greatly influenced by the image of the
company and its products, their primary problem
was trying to rebuilding their image to the Indian
public and regaining Indian consumers’ trust.

6.  This was a hard task because4NGOs have high
instinctive credibility and reliance by the people,
making it difficult for companies to compete with
such trustworthiness given to NGOs. Another
problem posed is the socially responsible
reputation of Coca-Cola as a corporate company
in the U.S. The United States is a flourishing,
developed country; yet, India is a developing
nation with a different set of standards. Should
Coca-Cola with hold their social responsibilities
internationally? Is the company economically
upheld to do so?

7. Alternatives Advantages Disadvantag
es
#Alt 1
Collaboration with
the
CSE
Reducing
Offensiveness
Recovery Paradox
Consumers like
NGOs
- Image
strengthened
- Reputation
improved
- Through the
Recovery Paradox
higher
trust for the brand
will be built
CSE might not be
willing to
collaborate
- Can be understood
as an apology for
actually doing
wrong
- Second round of
pesticide tests are
positive
- Recovery paradox
might backfire

8. # Alt 2:
Status Quo
Denial through
Argument
from ignorance
Ease of
implementation
- Incident quickly
forgotten
- Coca-Cola
powerful
Media attention
- Brand tarnished
- NGO powerful
# Alt 3:
PR Campaign
Ingratiation
through
Argument from
example
Worked well in
Belgium
- Loyal consumers
- Chance to show
Coca-Cola’s
corporate
social responsibility
(CSR)
Worked well in
Belgium
- Loyal consumers
- Chance to show
Coca-Cola’s
corporate
social responsibility
(CSR)

9.  After analyzing the options outlined in the table above,
it is recommended that collaboration with the CSE,
combined with a PR campaign (a modified version of
the one used in Belgium), is the most beneficial
strategic alternative for Coca-Cola.
 The implementation plan would be to collaborate with
the CSE and launch a PR campaign, Coca-Cola must
first gain the trust and the commitment of the.

10.  CSE, convincing them that Coca-Cola has the
consumer’s best interest in mind. As for the PR
campaign, Coca-Cola can utilize the successful
aspects of the Belgium campaign and
incorporate them in the India campaign.
 The next thing Coca-Cola needs to do is to
implement a customer retention program Coca-
Cola needs to rebuild their reputation and these
will show citizens Coca-Cola is still a very
reputable company that has nothing to hide.

12. High cost of R&D.
High pricing.
Lateentrant asan own brand.
Lesser known brand name.

13.  HTC focused on thehigh end
“consumer” market.
 Averageproduct lifecyclewerekept
around 3 quarters.
 Warranty risk.
 Lack of App store.

14.  R&D cost should bereduced to at least 3% of the
revenue.
 It should had introduced it’sown brand earlier whileit
entered in ODM businessin early 2000.
 HTC wasfocusing on the“consumer” market, instead
it should havesegmented it’smarket appropriately
according to it’sproduct.

15.  Averageproduct lifecycleshould beincreased to at
least fivequarter’sand reducewarranty risk.
 HTC should develop it’sown AppsStore.

16.  Innovation through collaboration.
•Introduced “touch technology” first in theworld.
•HTC chosetheright strategy that transferring itself from
asuccessful ODM to asuccessful mobilecompany with
brand.
•1st
introduced to producepocket PC with full color
display.

17. THANK YOU