This document provides an overview of Coca-Cola and PepsiCo's entry into the Indian market in the 1990s. It discusses their industry backgrounds, key issues in entering India, advertising campaigns, SWOT and PEST analyses, Porter's five forces analysis, recommendations to increase sales, potential risks and their mitigation. The recommendations include increasing infrastructure, tying up with restaurants, focusing on both youth and older generations through promotional activities and traditional advertising. Thorough local market research and moving into the health drinks sector are proposed as next steps. Risks around issues like loss of originality and high costs are also addressed.

2. Y YOGESH
ARJUN
 Case Synopsis
 Competitive
Landscape
 Industry Background
 Key issues
 Next Steps
RATUL
 SWOT
 PEST
SIDDHARTH
 Porter’s five forces
 Recommendations
 Alternative scenarios
PRIYANKA Facts & Analysis
 Potential risks
 Risk minimization
 Epilogue
PRIYANKA
AGENDA

3.  An American multinational beverage company headquartered in Atlanta,
Georgia.
 Invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia.
 The Coca Cola formula and brand was bought in 1889 by Asa Griggs Candler
 Offers more than 500 brands in over 200 countries and territories with over
1.7 billion servings each day.
 Brands under the Coca Cola Company : Fanta orange, Limca, Sprite, Thums
Up, Maaza, Minute Maid, Georgia Gold, Vitingo, Kinley etc.

5. INDUSTRY BACKGROUND
 Creator Caleb Bradham, a pharmacist in New Bern, North Carolina.
 Pepsi was originally named “Brad’s Drink”
 Created in 1893 and was later renamed Pepsi Cola in 1898
 In 1931 the Pepsi Cola Company went bankrupt
 In 1939, it was purchased by Charles Guth, the president of Loft Inc.
 Pepsi is a known brand available in over 160 countries.
 Brands under PepsiCo : Miranda, Mountain dew, 7Up,
Tropicana, Gatorade, Lay’s, Aquafina, Doritos etc.

7. Company’s expansion strategies to enter into India
Problems faced with advertising scenario
Cola war between Coke and Pepsi
KEY ISSUES

9. “A journey begins”
 Tactics of entering in India
 Challenges faced
 Advertising – “Backbone of both companies”
CASE SYNOPSIS
Coca Cola Advertising Campaign
 "Hill top" Commercial
 Always Coca Cola
 Coca Cola Enjoy
 Thanda matlab Coca Cola
 Open happiness
Pepsi Advertising Campaign
 This is the right choice baby
“ah-ha"
 The choice of a new generation
 Ask for more
 "Youngistaan's WOW

15. Strength
•Brand recognition
•Strong Advertisement
policy.
•It has got high market
share
•It has got a very wide
distribution channel
•Customer Loyality
Weakness
•Produces just
carbonated soft
drinks
•It has got high debt
level
•It has got
undiversified produt
portfolio
Opportunities
•High consumption of
bottled water
•High demand for
healthy
food/beverege
•More growth through
acquisitions
Threats
•Changing customer
choices
•Scarcity of water
•Competition from
other brands
•Health issues
SWOT ANALYSIS

16. PEST ANALYSIS

17. SWOT ANALYSIS
Strength
• It has got very good
brand portfolio
• It is world's second best
selling soft drink brand.
• Constant product
innovation.
Weakness
• Its mostly concentrated
in North America
• It has got lower
operation margin in
India.
• Only targets young
generation
• It has weak distribution
channel
Opportunities
• The increasing
population
• The diversification
• The changing social
trend
• Growth in the healthier
beverages
Threats
• Water scarcity is a major
issue
• Changing consumer
preferences
• Tough competion from
Coke.

18. PEST ANALYSIS

19. Rivalry among
existing firms
1. High competition
among Coke and Pepsi
itself
2. Low exit barriers
Threat of new entrants
1. Strong existence of current
market players
2. Tough competition from coke
and Pepsi
3. High investment on advertising
Bargaining Power of
Suppliers
1. Freedom to select the suppliers
2. Companies face low switching
costs.
3. Very minimal price difference
among suppliers
Threat of substitutes
1. Traditional drinks
2. Non-Carbonated Soft Drinks
3. Other soft drinks keep coming
in the market at low prices.
Bargaining Power of
Buyers
1. Direct buyers have very less
power to set prices.
2. Indirect buyers are highly
fragmented.
PORTER’S FIVE FORCES
Low
High
Low
Low
High

20. 1. Indianization
RECOMMENDATIONS
2. More usage of
electronic &
print media
3. To increase
infrastructure

21. 4. Tie ups with restaurant chains
5. Advertise in more traditional
way.
6. Focus on older generation
RECOMMENDATIONS

22. 7. Brand awareness:
Promotional offers on festivals
Sampling in traditional fairs
RECOMMENDATIONS

23. Promotional campaigns
Sponsorship for
games like
Cricket & Hockey
Focus on “Youth”
ALTERNATIVE SCENARIOS

24. 1. To capture local demand – “Indianization” is important
2. Print and electronic media were the most popular mediums.
3. To generate more sales increasing infrastructure was necessary.
4. India has its own food habits so to connect colas with that and advertise
in traditional way – a great necessity.
FACTS AND ANALYSIS

25. 5. Indian people love to dine on occasions in restaurants so to increase
sales, tie-ups are best way.
6. Older people who stick to their traditional drinks need more focus so to
get them also to consume colas.
7. Brand Awareness:
i. Promotions on festivals- High consumption of food and beverages
ii. Sampling in fairs- Most popular medium of entertainment in 90’s
FACTS AND ANALYSIS

26. 1. Indianization
It may lose its own originality and content
Be with original content and use effective advertisement to
go local
RECOMMENDATIONS
POTENTIAL RISKS
RISK MITIGATION
RISKS & MINIMIZATION

27. 2. More usage of
electronic
and print media.
Left the illiterate people untouched and reach to only who have
TV and Radios.
Use of billboards, flyers, picture advertising on banners.
RECOMMENDATIONS
POTENTIAL RISKS
RISK MITIGATION
RISKS & MINIMIZATION

28. 3. To increase infrastructure
High cost of Capital
By introducing cost effective infrastructure
RECOMMENDATIONS
POTENTIAL RISKS
RISK MITIGATION
RISKS & MINIMIZATION

29. 5. Advertise in more traditional way.
Misconception might happen that it could only be consumed
with snacks.
Emphasize on other aspects as well like thirst
RECOMMENDATIONS
POTENTIAL RISKS
RISK MITIGATION
RISKS & MINIMIZATION

30. RECOMMENDATIONS
POTENTIAL RISKS
RISK MITIGATION
6. Focus on older people
RISKS & MINIMIZATION
Might lead to message that its only for older people
Effective advertising - which shows people from all age
groups

31. 7. Brand awareness:
Promotional offers on festivals
Sampling in traditional fairs
People might wait for promotions always to purchase.
High cost and be given more in quantity.
Don’t do frequent promotions
Train employees for sampling
RECOMMENDATIONS
POTENTIAL RISKS
RISK MITIGATION
RISKS & MINIMIZATION

32.  Thorough local market research should be
done
Move to health drinks sector as per Indian consumers taste.
NEXT STEPS

34. Use instead of pesticides such
as: DDT, Malathion, Chlorpyrifos
Tooth decay due to presence of harmful
Acid
High fructose corn syrup resulting
in obesity and diabetes
Reduction of ground water table
EPILOGUE