Coke and Pepsi: from Global to Indian Advertising Essay Example

sector dates back to 1886 with John Pemberton, an American pharmacist who created Coca-Cola syrup. He sold it over pharmacy counters as a remedy for mental and physical disorders. This began in 1894.

In 1895, Coca-Cola broadened its market footprint in the United States by issuing its first bottling franchise. This move triggered a massive growth of Coca-Cola as independent bottlers combined sugars and carbonated waters with syrups and bases supplied by Coca-Cola, thus ensuring the drink was produced to exact standards. These franchised bottlers then undertook distribution within designated regions, setting up a model that soon became the norm for all companies. Besides creating the beverage, these franchises also provided services like quality assurance, marketing & advertising, research & development, and finance.

The bottlers made the essential financial investment in land, infrastructure, machinery, tools, vehicles, and containers. The product was offered to consumers through two methods - packaged or via fountain service. Fountain service implies delivering the beverage in cups at foodservice venues like dining establishments for immediate on-site consumption. These sales were termed "on-tradc" sales whereas those intended for off-site consumption were named "offtradc" sales. Worldwide, it was these off-trade sales that predominantly stimulated the soft drink industry's growth.

During the 1980s, a burgeoning interest in health and fitness prompted soft drink manufacturers to create low-calorie alternatives like Diet Coke and Diet Pepsi. This trend continued into the next decade with the advent of "new age beverages" such as flavored sparkling waters, organic sodas, blended fruit juices, infused teas, and packaged coffee drinks. As a result, the scope of the soft drink industry expanded from being exclusively cola-based to include

a wide variety of carbonated and non-carbonated beverages.

In 1993, Coca-Cola re-entered the Indian market by acquiring Parle, which gave them control over its popular brands, bottling structure and consumer base. This acquisition paved the way for Coca-Cola to bring well-known international beverages such as Coca-Cola itself, Diet Coke, Sprite and Fanta to India. However, this reintroduction presented certain challenges like dealing with Parle's outdated bottling facilities. Furthermore, their focus on promoting "Coke" led to a dramatic drop in Thums Up's market share from 60% in 1993 to just 15% by 1998. In response to this decline, Coca-Cola ramped up advertising and distribution initiatives for Thums Up. They improved operations at the start of the new century by shutting down antiquated plants and reducing costs through local sourcing of raw materials; they also updated their bottling technology and expanded their distribution network. Their strategic efforts resulted in business recovery around mid-2000s. By 2009, commanding a CSD market share of 59%, Coca-Cola India had become a leading player (for comparative company-wise Indian market shares refer Exhibit 6).

In the mid-1970s, Coca-Cola's advertising campaign named “Look up America” attained global recognition. This era was characterized by political instability in the United States due to the Watergate scandal. Concurrently, racial issues escalated in America which led to job losses among African Americans. In 1979, a new advertisement was launched by Coca-Cola featuring a young boy and esteemed footballer “Mean Joe Green”. Known for his combative game strategy, Green was an intimidating yet successful defender. In this commercial, the boy approached Green as he exited the stadium offering assistance. Despite Green's initial dismissal of the offer, the

persistent boy convinced him to accept his offered Coke. Eventually, Green consumed it and tossed his jersey at the surprised youngster who didn't expect anything in return from him with a heartwarming smile on his face. The ad ended on "Have a Coke and a smile", thus marking another victory for Coca-Cola.

In response to Pepsi's appeal towards youthful consumers leading to lost market share, Coca-Cola introduced their "Always Coca-Cola" campaign in 1993 . Unlike previous campaigns , "Always Coca-Cola" consisted of various commercials targeting diverse demographics specifically focusing on younger audiences (18 -29 years) through engaging advertisements.

Coke wanted to make sure that their new campaign did not upset their core and aging customers who have been loyal to Coke for a long time. They created individual commercials that emphasized traditional values, like the advertisement featuring an anniversary couple reminiscing. To achieve a fresh and trendy approach, Coke enlisted the help of Creative Artists Agency (CAA), a Hollywood agency that had never previously been involved in advertising campaigns. CAA collaborated with talented Hollywood directors to create advertisements that resembled short films rather than typical ads.

One of the popular symbols of Coke advertising was the commercial "Northern lights", which showcased a magical place where polar bears enjoyed watching movies and drinking Coca-Cola. Coke strategically aired these commercials on programs and channels that appealed to the target audience. For example, during Star Trek episodes, a commercial telling the story of a spaceship was broadcasted, and on MTV, an ad based on a music video was shown. These international commercials often had a visual focus, allowing Coke to use them unchanged in multiple countries.