Coke and Pepsi entered the Indian market in the late 1950s and 1980s respectively. They faced political challenges initially but were able to establish themselves through joint ventures with local companies. Both companies localized their products and promotions to target different consumer segments in India. While Coke focused more on urban youth, Pepsi promoted widely in rural areas. Both invested heavily in celebrity endorsements and sponsorships. In the long run, Pepsi's better adapted marketing strategies positioned it for greater success in India over Coke.

1. COKE AND PESSI
LEARN TO COMPETE
IN INDIA
International Marketing Cources
MS:

2. TEAM MEMBERS
1.
2.
3.
4.
5.
Võ Vương Huy
Nguyễn Việt Hạnh Duyên
Phạm Thành Nam
Đinh Nguyễn Quỳnh Trang
Nguyễn Đức Hoài Duy

3. OUTLINE
1. Introduction
• Political Environment & India’s Market
2. Promotion Mix
• Product
• Promotion
• Place
• Price
3.Glocalization Strategy .
4.Lessons

4. INTRODUCTION
INDIA’S MARKET

5. Political Environment
• In 1991, an economic crisis: oil prices rise → inflation → A
new government.
• “The principle of indigenous availability” => India seen as
unfriendly to foreign investorfor many years.
• The Liberalization of India’s government in 1991 + the
dismantling of strict trade rules and regulations → foreign
inTvestment increased
Introduced the new plan to help economy
• In 1988, BVO

6. INDIA MARKET
• Coke entered the Indian market from 1958 to 1977; give up 40 %
equity stake + hand over its secret syrup formula or leave India →
leave
• Six favorite drinks: cola, cloudy lemon, orange, soda, mango and clear
lemon
• Indian consumers prefer to fruit drinks (natural, healthy, tasty) →
carbonated soft drinks > < noncarbonated fruit drinks → Parle’s Frooti
• Average Indian buys 3 bottles of soda a year
• PepsiCo entered the Indian market in 1986 as Pepsi Foods Ltd. In a
joint venture with two local partner
•
Coca-Cola tried to reenter India by merging with a local company
Godrej → rejected → made its return by merging with Britannia
Industries India Ltd.
•
In July 1993, Parle sold bottling plants + leading brands to CocaCola

7. 2
MARKETING MIX
Product -Promotion- Price-Place

8.  Pepsi
Product
• A big competitor of colacola
• Concentrate much on
Juices/juice drinks and
water
• Developing 7 food brands
and 10 Beverages brands
 CoCa-Cola
Coca-Cola is the company which
has introduced 6 types of soft
drinks in the
Indian market:
-Soft drinks
-Sports drinks
-Energy drinks
- Water
-Juices/juice drinks
-Energy drinks
-Tea and coffee
 Coca cola’s product is highly
diversified in the India market
with more than 70 brand names
in Indian market

9. • Pepsi and Coke command over 95% of
the soft-drink market in India.
• In 1995, Coke had 52 % of the Indian softdrink market share and Pepsi had around 42%
market share.

10. Compititors
Local producers like Rc Cola, Alfa, Campa Cola,
Red Bull

11. Price
 Coca-Cola
• Coca cola India
(CCI) thought about
the affordability of
the market when CCI
targeted the rural
market of India.
• CCI reduced price of
soft drink by 15% 25% nationwide in
order to encourage
consumption
 Pepsi
• Direct Price Discrimination
• Indirect Price
Discrimination
• Pepsi again decides it price on
the basis of competition.
• very flexible
• this risk taking attitude has
also earned

12. Promotion
• Attracted young generation.
• Choose the image of football player and
cricketers.
• Different size of bottles offered at lower prices
• Has become the largest seller of soft drinks in
India and is slowly forming a monopoly in
drinks market.

13. PROMOTION
•
•
•
•
Advertising:
Sale Promotion:
Personal Selling:
Public Relation:

14. Advertising
• Coke’s advertising and promotion strategy
pulled the marketing plan together using local
language and idiomatic expressions.
• Coke invited brand ambassadors to promote
their product. Customers who are familiar
with the celebrities can quickly identify them
with the product.

15. INDIA A
• The urban youth target market, includes 18–
24 year olds in major metropolitan
areas. Coca-Cola’s India strategy focused on
relevant local idioms in an effort to build a
“connection with the youth market.
“Bombay Dreams”
“Chennai Dreams”
60-second films featured actor Vivek Oberoi
with Aishwarya Rai

16. INDIA B
Coca-Cola India worked hard to build a brand
preference among young people in rural target
markets.
• “Thanda Matlab Coca-Cola” - The campaign
equates Coke with "thanda”, the Hindi word for
• "cold," a commonly used term for a generic soft
drink. This campaign successfully propelled
• Coke into the number three position in rural
markets.

17. Sale Promotion









Buy-one-get-one- free
Customer Relationship Management
New Media
Merchandising
Free gifts
Discounted prices
Joint promotion
Free example
Vouchers and coupons

18. Coca-cola: Doing sponsorship with some
university and college’s study and other
curriculum activities.
Pepsi: Supporting for Cricket and football

19. Public Relation
•
•
•
•
Advertising in many channels in india
Using celebrities to advertise the product
Many distribution channels
Subsidies for many charity and social events in
india
• Pepsi: game shows, football events, HIV
campaign
• Coke: Education
Built a strong image and good relationship with
customer.

20. Place
Coca-Cola products are available in:
1. Retail Stores including Convenient stores
(Super markets etc…)
2. Vending machine/Self Service Slot machines
(college, universities and other miscellaneous
business)
3. Ho-Re-Ca (means Hotels, Restaurants, Cafes
including Fast food outlets, cuisine
Restaurants etc.)

21. Place
• Locations where the product is consumed onsite can be split into small venues and large
venues
• ventured into ownership of fast food chains
with its purchase of Taco Bell, Pizza Hut and
KFC.

22. Coke & Pessi ‘s
Glocalization Strategies

23. Coke & Pessi ‘s Glocalization Strategies
Pessi
• Pessi entered the Indian market in a joiny
venture with 2 local partners , ( Vltas and
Punjab Argro ) under the name “ Pessi Food
Ltd “
• In keeping with local tastes , Pessi launched
Lehar 7UP in the clear lemon category
• Promoting the advertiment through the
festival of Navrartri .
• Pessi has been sponsoring famous Indian
athletes for the World Cup Cricket series ,
and socer Tourament .

24. CoCa-Cola
• Formed a joint venture with the
market leader Parle in 1993
• Try to involve the masses
through 20,000 free passes of
“Thums Up” bottles .
• Run special promotion to where
one can win a free trip to Goa ,
a tourist and resort state in
western .
• Coke also hired some famous
“Bollywood” actor to endorse
their product

25. PROBLEMS
• Coke & Pessi’s Products
Contained significant levels
of pesticide residue ….
?

26. Coke or Pessi in the long term
prospects for success ??
Pessi:
+Better marketing and advertising strategies
+More widely accepted
+More market share
Coke :
+Government conflicted
+Trailing pessi in market share
 Pessi will be better in the long term prospects for success

27. LESSONS
• How transfer learning from one market to
another, particularly Big Emerging Markets
• Relationship building at all levels especially the
government
• How to devise strategies to target the future for
global companies worldwide : the billions of the
people of the bottom-of-the-pyramid (BOP)
should be an opportunity and an important
lesson.
• Politically unstable countries → Having a good
exit strategy. Ex: Coca-Cola’s exit in 1977 from
India