Coke And Pepsi Learn To Compete In India Analysis Essay Example
Coke And Pepsi Learn To Compete In India Analysis Essay Example

Coke And Pepsi Learn To Compete In India Analysis Essay Example

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  • Pages: 3 (716 words)
  • Published: October 26, 2017
  • Type: Essay
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As far as I am concerned, there are three specific aspects of the political environment have played key roles:

1) As mentioned in the case, Indian government viewed as unfriendly to foreign investors. Outside investment had been allowed only in high-tech sectors and was almost entirely prohibited in consumer goods sectors.

2) Based on Indian laws, outside investment cannot use their original brand name. For Coca-Cola, they attempted to enter into Indian market by Joining with Pearl and became "Coca-Cola India".

For Pepsi, its products were promoted under the name of "Lear Pepsi".

3) Later, the liberalizing of the Indian economy and the dismantling of complicated trade rules and regulations, foreign investment increased dramatically. I don't think these effects have been anticipated prior to market entry. Because the Indian political environment was unstable, different g

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overnment issued different policies. And I think developments in the political arena have been handled better by each company. Coke could agree to start new bottling plants instead of eying out Pearl, and thus wouldn't agree to sell 49% of their equity. Advantages of earlier market entry:

1) As entering the market earlier, Pepsi can gain the market share earlier than other competitors.

Disadvantages of earlier market entry:

4) There were several stringent conditions imposed on Pepsin's venture. Sales of soft drink concentrate to local bottlers could not exceed 25% of total sales for the new venture.

Pepsin's promotional efforts focused on cricket, soccer, and other Indian athletic events. For Coca-Cola, it first Joined forces with the local snack food producer Britannic Industries India Ltd. Later, it formed a Joint venture with Pearl when it reentered the market. Additionally, Coca-Cola'

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India strategy focused on relevant local idioms in an effort to build a "connection with the youth market".

5. As far as I am concerned, Pepsi and Coke can improve their manufacturing technology which can save water. Moreover, they can add several cycling Tactless In tenet maturating process letter. Coke can Turner attest boycotts or demonstrations against their products by hire some experts and celebrities to do the advertising for their products. It can ask the experts to deliver the information to the public that their products are healthy and safe. I think Coke should address the group directly rather than Just let the furor subside.

6. In my opinion, Pepsi will have better long-term prospects for success in India. First of all, Pepsi entered the India market earlier, so it own more market share than Coke. Secondly, I think Pepsin's marketing strategies are better than Coke's.

Last but not least, Coke has some conflicts with Indian government while Pepsi not.

7. First of all, cater to local tastes is important when you enter into a foreign market. Secondly, comply with local government's rules and policies are also significant. And try to build a good relationship with local government. Thirdly, advertising is a very useful weapon for a firm to gain market shares. Last but not least, it is beneficial to pay attention on the market trends.

8. I think enter the bottled water market instead of intuition to focus on their core products is a wise decision.

The water market is very large so it is possible for these two famous beverage companies earn a certain amount of market shares. Moreover, people are concern

more on their health nowadays. People drinks more water now. As a result, enter into the bottled water market may increase their sales and then increase their profits.

9. As far as I am concerned, this is not a good strategy for Coke. First of all, the competition in the energy drinks is very fierce. Coke may spend a lot of time and money in order to grab mom market share from the current market leaders.

Although we have learned that a high economy of scope is good for a company, launch too many different products may not a good idea. It may cost Coke additional spend to handle problems with the new product. Secondly, Coke chose to distribute its new product through pubs, bars and gyms rather than large retail outlets may not a good marketing strategy. I think Indian people were not go to pubs, bars and gyms as often as American people. Therefore, Coke sell its product through these channels may not increase its sales and market share.

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