ppt on busuness studies

1. INTRODUCTION
• Business is said to be a product of its environment which consists of all those
external things to which it is exposed and by which in many be influenced
directly/indirectly.
• Alll the elements of business environment i.e economic, political, social,, legal and
technological should be closely observed and scrutinized.
• In this presentation we will be analysing various element of business environment
of Indian soft drink industry.

2. PARTICIPANTS OF THE INDIAN SOFT
DRINK INDUSTRY

3. From 60s to 90s
• Coca-Cola was the first multinational corporation to enter the Indian
market in the year 1956
• No sooner did Coca-cola enter the Indian market than it became a hit in
the Indian market and was readily accepted
• According to the Indian foreign exchange act of 1974, foreign companies
selling consumer goods must invest 40% of their equity stake to Indian
associates
• In 1977 due to a change in Indian govt administration it decided to exit
the Indian market, they asked Coca-cola to handover their Indian
subsidiary
• After Coca-colas’ exit, various Indian companies entered the Indian soft
drink market

4. • A govt run company introduced ‘double seven’ but it didn’t
do well in the market
• Coca-colas’ former local bottler pure drinks , created
‘Campa Cola’ in the absence of foreign competition
• Parle , a food and beverage company introduced gold spot,
thums-up, citra, maaza & limca
• Even though many Indian soft drink brands were
developed, Campa Cola and thums up dominated the entire
soft drink industry until the early 1990s.
• As india got familiaresed with global brand and US market
seemed to reach its saturation point pepsi entered the
Indian market.
• Pepsi entered Indian market in 1989 through a joint venture
with two Indian companies with the brand name of lehar
pepsi.

5. 1991 ONWARDS
• With the new policy in 1991 foreign brands were
allowed to operate without any Indian partners in the
market.
• Coco re-entered the market in 1993, with its wholly-
owned subsidiary coca-cola India Pvt. Ltd.
• These companies grew rapidly in India with an
extensive distribution system comprising of customers,
distributors, and retailers. Aggressive selling strategies
were adopted by these brands.
• Various marketing strategies were adopted like jingles,
celebrities, endorsement, and tag lines to reach out to
customers.

6. EFFECTS OF VARIOUS
ELEMENTS OF THE
BUSINESS ENVIRONMENT

7. ECONOMIC ENVIRONMENT
• As a part of economic reforms, the government of
India introduced a new industrial policy of 1991.
• As per the new liberalization policy of the government
foreign brands were allowed to operate without any
Indian partners.
• With liberalization the india customer witnessed an
increasing exposure to new domestic and foreign
products through different media such as television
and internet.
• Coca – cola acquired the ownership of the nation’s
top soft drink brands including thumbs up(the most
trusted brand),limca.maaza,citra, and goldspot.

8. POLITICAL ENVIRONMENT
• In 1977, due to the change in the political situation
in the country, the newly established government
wanted coca-cola to hand over its Indian
subsidiaries.
• As coca-cola did not agree with the terms, it decided
to exit from the Indian market
• This shows that the political environment has an
immediate impact on business transactions.
• In the present scenario, we also observe that
government ideologies favor MNCs in India so they
can operate freely here.

9. SOCIAL ENVIRONMENT
• India’s one billion people, growing middle class and low per
capita consumption of soft drink made it a highly contested
market for soft drink companies.
• In 2001,coca-cola realized that in order to compete with
traditional refreshments competitive pricing was essential. In
response , coke launched a smaller bottle priced at 50% of the
traditional package
• The tagline like ‘life ho to aisi’ and ‘Thanda Matlab coca cola’
created a social bonding within the Indian rural and urban market
segment.
• As a healthier option for the consumers it came up with diet coke
and various gift packs during the festival time.

11. TECHNOLOGICAL ENVIRONMENT
• Television and internet companies’ advertising, marketing, and promo are the main
digital tools used for marketing by soft drink companies.
• Coca-Cola is using digital technology to create new consumer experiences via innovative
programs like sip & scan, which lets consumers unlock experiences and prizes by
scanning icons on Coke packages with their mobile phones.
• The innovative pet bottle packaging of the product which are less dependent on
petroleum and have lower carbon impact increased the sales further as it is easy to use
and environment friendly.

12. LEGAL ENVIRONMENT
• Legal environment constitutes the
law and legislation passed by the
government and has to act according
to various legislation.
• Coca-cola agreed to invest 40%
foreign equity but stated that it
would not allowed local participation
in administration and technical units.
It was against the foreign exchange
regulation act.
• The federal Nutrition Labeling and
Education Act (NLEA) of 1990 amends
the Food, Drug and Cosmetic Act
(FD&CA). It requires most food to
bear nutrition labels and prescribes
their form and content.

13. COMPETITIVE BRANDS IN THE
INDUSTRY

14. • PEPSI
Pepsi is a hundred-year-old brand loved by over 200 million people
worldwide. The largest single-selling soft drink brand in India is the
ubiquitous ‘socializer’ on every occasion. But what has made Pepsi the
single largest selling soft drink brand in India is a formula concocted a
century ago in a faraway continent.
• COCA-COLA
Owned and manufactured by the Coca-Cola Company, Coca-Cola was
invented by American pharmacist John Pemberton in the late 19th
century at a drugstore in Columbus, Georgia. It was initially introduced
in the market as a patent medicine. Coca-Cola is simply referred to as
“coke”, which became a registered trademark by the Coca-Cola
company in the United States in 1944.

15. • GOLD SPOT
This orange colored carbonated soft drink was introduced in the
early 1950s, and acquired by the Coca-Cola company in 1993. Its
tangy taste has been popular with Indian teenagers.
• LIMCA
This thirst-quenching beverage features a fresh and light lemon-
lime taste. The Limca brand was introduced in 1971 and acquired
by the Coca-Cola company in 1993.
• MAAZA
Maaza, launched in 1984 and acquired by the coca-cola
company in1993, is a non carbonated mango soft drink with a
rich, juice & natural mango taste.
Mango drinks currently account for 90% of the fruit juice market
in India. Maaza currently dominates the fruit drink category and
competes with Pepsi’s Slice brand of mango drink and Frooti,
manufactured by Parle Agro.

16. • THUMPS UP
In 1993, the Coca-cola company acquired this brand, which was originally
introduced in 1977. Its strong and fizzy taste makes it unique carbonated Indian
cola. As of February 2012, Thumps Up is the leader in the cola segment in India,
commanding approximately 42% market share and an overall 15% market share in
the Indian aerated waters market.
• APPY FIZZ
It is a product by Parle Agro, introduced in India in 2005. Appy Fizz consists of
carbonated apple juice, and is used as the basis for cocktails and is a popular drink.
After the success of Appy which was clean apple juice, Parle launched its sequel
product as Grappo Fizz, which is a carbonated grape juice.

17. • SPRITE
Manufactured and produced by the Coca-cola
Company, Sprite is a colorless lemon-lime flavored
soft drink. The Coca-Cola Company introduced the
soft drink to the market to compete against PepsiCo’s
7 Up. Sprite’s packaging is a green transparent bottle
with a green and blue label.
• FANTA
Fanta is a global brand of fruit-flavored carbonated
soft drink created by the Coca-cola Company. In
India, Fanta entered the market as a substitute for the
then-popular Indian soft drink Gold Spot. When
Coca-Cola re-entered the Indian market in 1993, it
bought Gold Spot from Parle and withdrew it from
the market in order to make space for Fanta.

18. • Center purpose of business goes beyond earning profit. It is an
important institution in society and has to take into account the
environmental concern also.
• The center for science and environment an activist group in India,
focused on environmental sustainability issues, issued a press release
on August 5th, 2003, stating 12 major cold drinks brands sold in and
around Delhi contain a deadly cocktail of pesticides residues.
• In response to this Coca-cola & Pepsi launched independent
campaigns to pressure the public, taking out full-page newspaper
advertisements and directing consumers to their corporate websites
to review test results and safety protocol in greater detail. They
addressed press conferences wherein they assured their quality
standards and attacked the credibility of CSE and their lab results.
• In Pluchimada, Kerala, Coca-cola was allegedly responsible for
creating problems by communities by deteriorating quality and
quantity of groundwater due to its over-exploitation by the company.
ENVIRONMENTAL IMPACT

19. CONTROVERSY RELATED TO THE SOFT DRINK INDUSTRY
• Coca-cola and Pepsi co sold soft drinks containing pesticides
harmful to human health and misled India’s 1 billion people
over claims that their product was safe for human
consumption, Indian MPS concluded yesterday.
• Their report recommended stringent new regulations for
fizzy drinks which would “seek complete freedom from
pesticides residues in aerated beverages”. An estimated seven
bottles of cold drinks are sold to every Indian each year in a
market worth $900 million.
• Coca-cola also fares protests about water extraction and
pollution at its plant at mehendiganj, near Varanasi in Uttar
Pradesh.
• A third protest has begun at sivganga in Tamil Nadu, which is
already facing a water shortage.

20. CONCLUSION
• It is concluded that the business environment influences the
working of a business enterprise in important ways.it is dynamic
in nature and uncertain as no one can predict what will happen in
the future.
• A positive change in the business environment leads to growth of
the business while a negative change leads to decline in business.
A business should identify the sign of threats to protect itself from
negative change while it should identify the early opportunities to
get the maximum benefit out of it.

21. REFERENCES
• www.pepsocoIndia.co.in
• www.coca-colaIndia.com
• www.capicola.com
• www.theguardian.com
• www.Indiaessays.com
• www.Indiaenvironmentalportal.org.in