GROUP MEMBERS

RAJKUMAR RAVINDER SINGH RAVI KUMAR RAJESH KUMAR GUPTA RAJKUMAR RASTOGI

TOPIC

MNCs in India, Why MNCs in India? What MNCs want?, What has India gained?, Problems bought by MNCs PEPSICO IN INDIA COCA COLA IN INDIA COPARISON B/W PEPSI & COKE

Multinational Companies (MNCs) or Transnational Corporations(TNCs)are the organizations or enterprises that manage production or offer services in more than one country .

India has been the home to a number of multinational companies. In fact, since the financial liberalization in the country in 1991, the number of multinational companies in India has increased noticeably.
Coca Cola Company, Dell, Ford Motors , Google,(USA) LG, Hyundai , Samsung (South Korea) Sony, Hitachi, (Japan) Virgin, British Petroleum ,Vodafone, HSBC, (UK) Nokia (Finland) Nestle (Switzerland)

There are a number of reasons why the multinational companies are coming down to India. India has got a huge market. It has also got one of the fastest growing economies in the world. Besides, the policy of the government towards FDI has also played a major role in attracting the multinational companies in India.

Huge market potential of the country FDI attractiveness Pool of Cheap & skilled labour Fastest growing economies

What multinational companies want?

Strong protection Favorable treatment Low taxes & regulations Right to establish, without burdensome red tape Right to move employees in and out, To move capital in and out Uniform standards across countries

What has India gained?

Work culture for employees.

Creation of job and career opportunities Technology

Culture and Ethos.

 Improve in balance of payments. Net increase in FDI.

Greater availability of products. R&D Outsourcing Pharmaceuticals, Engineering, IT, Telecom

PROBLEM BROUGHT BY MNCs

Host country is likely to lose its economic sovereignty. Host nation may lose some loss of control over its own economy. Very less new additional manufacturing units. Loss of culture .

Coca-Cola, the corporation nourishing the global community with the worlds largest selling soft drink concentrates since 1886, returned to India in 1993 after a 16 year hiatus, giving a new thumbs up to the Indian soft drink market. In the same year, the Company took over ownership of the nations top soft-drink brand and bottling network. Its no wonder our brands have assumed an iconic status in the minds of the worlds consumers.

A Healthy Growth to The Indian Economy

Ever since, Coca-Cola India has made significant investments to build and continually consolidate its business in the country, including new production facilities, waste water treatment plants, distribution systems, and marketing channels. Coca-Cola India is among the countrys top international investors, having invested more than US$ 1 billion in India in the first decade, and further pledged another US$100 million in 2003 for its operations.

A Pure Commitment to The Indian Economy

The Company has shaken up the Indian carbonated drinks market greatly, giving consumers the pleasure of world-class drinks to fill up their hydration, refreshment, and nutrition needs. It has also been instrumental in giving an exponential growth to the countrys job listings.

Creating Enormous Job Opportunities

With virtually all the goods and services required to produce and market Coca-Cola being made in India, the business system of the Company directly employs approximately 6,000 people, and indirectly creates employment for more than 125,000 people in related industries through its vast procurement, supply, and distribution system. The Indian operations comprises of 50 bottling operations, 25 owned by the Company, with another 25 being owned by franchisees. That apart, a network of 21 contract packers manufacture a range of products for the Company.

PepsiCo India
PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994.

PepsiCo Incorporated is a Fortune 500, American multinational corporation headquartered in Purchase, NY. Manufacturing and marketing a wide variety of carbonated and non-carbonated beverages, as well as salty, sweet and grain-based snacks, and other foods. Their main product, Pepsi Cola, sells over 100 billion cans a year. Besides the Pepsi-Cola brands, the company owns the brands Quaker Oats, Gatorade, Frito-Lay, SoBe, Naked, Tropicana, Copella, Mountain Dew, Mirinda and 7-Up (outside the USA).

Indra.k. Nooyi Chairman and CEO PepsiCo Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006. During her time, healthier snacks have been marketed and the company is striving for a netzero impact on the environment.
This focus on healthier foods and lifestyles is part of Nooyi's "Performance With Purpose" philosophy.

Founded

New Bern N.C, U.S. (1890)

Founders

Caleb Bradham, Donald M. Kendall and Herman W. Lay

Headquarters Area served

Purchase, New York, U.S. Worldwide

Key people

Indra Nooyi (Chairperson and CEO)[1]

Pepsi Diet Pepsi Mountain Dew AMP Energy Aquafina Sierra Mist SoBe Starbucks Frappuccino Lipton Iced Tea 7up Mirinda Izze Tropicana Products Copella Naked Juice Gatorade Propel Fitness Water Quaker Oats Company Lay's Doritos Cheetos Kurkure Fritos Rold Gold Ruffles Tostitos Slice

Beverages
PEPSICO INDIAS EXPANSIVE PORTFOLIO INCLUDES ICONIC REFRESHMENT BEVERAGES PEPSI, 7 UP, NIMBOOZ, MIRINDA AND MOUNTAIN DEW, IN ADDITION TO LOW CALORIE OPTIONS SUCH AS DIET PEPSI, HYDRATING AND NUTRITIONAL BEVERAGES SUCH AS AQUAFINA DRINKING WATER, ISOTONIC SPORTS DRINKS - GATORADE, TROPICANA100% FRUIT JUICES, AND JUICE BASED DRINKS TROPICANA NECTARS, TROPICANA TWISTER AND SLICE. LOCAL BRANDS LEHAR EVERVESS SODA, DUKES LEMONADE AND MANGOLA ADD TO THE DIVERSE RANGE OF BRANDS.

Food
PepsiCos food division, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG. It manufactures Lays Potato Chips, Cheetos extruded snacks, Uncle Chips and traditional snacks under the Kurkure and Lehar brands. The companys high fiber breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers.

Frito Lays core products, Lays, Kurkure, Uncle Chips and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets.

Revenue Operating income Net income Total assets Total equity Employees

US$43.2 Billion (FY 2009) US$8.04 Billion (FY 2009) US$5.95 Billion (FY 2009) US$39.8 Billion (FY 2009) US$16.8 Billion (FY 2009) 185,000 (2008) PepsiCo Americas (PepsiCo Ameri Food, PepsiCo Americas Beverages), PepsiCo International PepsiCo.com

Divisions

Website

Establishment

Investment

Employment
PepsiCo India provides direct and indirect employment to 150,000 people including suppliers and distributors.

PepsiCo established it's PepsiCo India and its business operations in India in partners have invested more 1989 and has grown to than USD1 billion since the become one of the countrys company was established in leading food and beverage the country. companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India.

Coca-Cola and Pepsi are the two most popular and widely recognized beverage brands in the world. Within their lineup of beverages, Pepsi-Cola and Coca-Cola Classic are the predominant carbonated cola beverages.

BASIS OF COMPARISON
Contents: Taste Sweetness Carbonation Brand war Marketing approach Advertisements Local competitors Employees plant & machinery conclusion

Brand War
Both drinks are no longer seen as a beverage but mainly as a brand. Both companies commit heavily to sponsoring outdoor music festivals and even charitable projects in third world countries,

Marketing Approach
Both Coca-Cola and Pepsi try to market as part of a life-style. Coca-Cola uses phrases such as "Coke side of life" in their website, while Pepsi uses phrases such as "Hot stuff" in their website, to promote the idea that Pepsi is "in sync" with the cool side of life. Pepsi tries to reach out to the younger generation by appealing to pop culture. If you visit their website you will be greeted with flashy pages containing pop music, cars, and fashion. Coca-Cola's website also has links for music and sports, two arenas in which soda-pop is often consumed; however, Coca-Cola's is less flashy and uses a classical appeal, most likely because of Coca-Cola's long history as the standard for cola beverages

Advertisements
Coca-Cola has Amir khan featured in their commercials, while Pepsi has Ranvir kapoor .