1.

Indias political environment

Principle of "indigenous availability
i.
ii.
iii.
iv.
v.

Difficult exchange arrangements, tenets and directions

Prohibited use of outside brand name in India
Sales of soda pops focus to neighborhood bottlers couldn't surpass
25% offers of the wander
Required to prepare and convey nearby foods grown from the ground
Market was little in size

Could these impacts have been foreseen preceding business sector passage?
Most likely not on account of speculation standards in India were vague and
modifying amid the 1990s and execution of government principles was conflicting
Could improvements in the political field have been taken care of better by every
organization?
With a specific end goal to stay away from a few confinements of Indian
government Coca-Cola could run new packaging plants as opposed to purchasing
out Parle, and along these lines wouldn't need to offer 49% of its value.
2.

Early and late entry

Pepsi (1986 early entry)
Advantages
i.
Entered before Coca-Cola, got 26% share of the overall industry by
2003
ii.

Easier to separate from nearby items

Disadvantages
i.

Stricter directions changed their name to Lehar Pepsi

ii.

Limitation of soda pop deals to 25% of aggregate deals by Gov.

iii.

Tough rivalry with neighborhood brands

iv.

No encounter, no past cases of (un)success

Early and late entry

Coca-Cola (1993 late entry)

Advantages
i.

Bought 4 bottling plants from industry pioneer Parle

ii.
Acquired Parle's driving brands: Thumbs Up, Limca, Citra, and so
forth
iii.

2 new pursuits with Parle to bottle and market production

3.

Disadvantages
i.

Harder to establish market share with Pepsi presence

ii.

No allowance for equity buy back

Promotional activities
Pepsi
Price aggressive
Place around Delhi and Mumbai
Promotion sponsorship at Navratri, TV campaign using sports and
celebrities, sales promotion
Product different bottle size (200ml), fountain sales, 3 tastes of Mirinda,
Pepsi Blue, sparkling water
Promotional activities
Coca-Cola
Price affordable, huge reductions up to 15-25% in 2003
Place different target regions - India A and B
Promotion events, lifestyle focus, sales promotion
Product acquired 5 brands from Parle, water, mini-sized bottles

4.

Glocalisation of Pepsi

Pepsi forms joint venture with two local partners

Pepsi Foods Ltd. became Lehar Pepsi

Lehar 7UP was launched in order to correspond local tastes

Companys advertising was held during the cultural festival of Navratri

Sponsorship of world famous Indian athletes, such as cricket and soccer

players
Glocalisation of Coca-Cola

Formed a joint venture with the local leader

Coca-Cola issued free passes to the celebration in each of its Thums Up

bottles for the cultural festival of Navratri

Company held on-site activities where people could win a free trip to Goa

Strategy of building a connect using the relevant local idioms

Company hired several famous Bollywood actors to endorse their products

5. "The Coca Cola Company utilized 290 billion liters of water in 2006, sufficiently
alone to meet the whole world's drinking water requirements for 10 days" (Amit
Srivastava, July 30, 2007). This crisp water was for the most part used to clean their
gear in the generation procedure, transforming 66% of this water into waste water.
One must note this is done in a nation where water deficiency is a small issue. In
this way, both multi-national must 'take the bull by the horn' and change the way
they do certain systems without stowing away however being genuine. More
effective methods for cleaning must be found to squander less water and be more
dependable towards the Indian country. Coca-Cola has recently reported an
organization of US $20 billion more than three years amongst them and the world
untamed life subsidize on water preservation. This will help in revamping the trust
with the Indian populace in order to prevail in the Indian market. A component of
corporate social duty is critical for organizations to work better inside outside
market.
Terrible attention can harm an organization's notoriety certainly. This was plainly
experienced by both PepsiCo and Coca Cola India. Albeit admonitory sheets were
made and virtue tests were led with a specific end goal to dodge encourage
blacklists or shows against their items, this was insufficient. Better utilization of
Public Relations would have been an initial step. Having led immaculateness tests,
the following stride would be that of conveying the outcomes in a powerful way.
Denying the allegations and after that showing these tests could have been felt as a
provoke. The utilization of official statements and open days at the production lines
demonstrating the procedure for instance would have made both the administration
and the overall population more member. Also, attempting to manage the
legislature by underlining on corporate social duty could have picked up
government's trust and in this way procure a more secure position in return.
Offering a rate of their benefits to help in building schools or doctor's facilities in
India could have been a thought.
Extremist gatherings, similar to the one in California, are capable. They can be
awesome partners additionally most exceedingly awful adversaries for an
organization. Their impact on the general Coke customer is extraordinary as they
achieve the purchaser specifically through different exercises; and thusly these
shoppers constrain makers/providers and so forth to make a move. Truth be told,
the crusades in California prompted a few packaging plants shutting down and in
addition the stopping of agreements with Coca Cola.
Coke ought to address the gathering specifically maintaining a strategic distance
from allegations of attempting to shroud its exercises and activities. Along these
lines it would shield itself and would likewise have the capacity to recover its
believability and keep assembling its picture by being proactive. Another motivation
behind why it ought to do as such is to pick up trust of clients since it claims it has
nothing to cover up by being honest and giving a reply as opposed to sitting tight
for the gossipy tidbits, allegations and embarrassment to die down.
6. Long-term prospects

Pepsi
i.

More market share (23.5% vs. 16.5%)

ii.

Sold in wider region

iii.

More successful advertising

Coca-Cola

i.

Trailing Pepsi with smaller market share

ii.

Difficulties in relationships with government

Pepsi will be better in the long term prospects for success

7.

Lessons from Indian experience

i.

Better evaluation of political risks and relationships with government are

needed

ii.

Better timing of entry. Companies need more accurate prediction of

consumption rates

iii.

Beneficial to keep up with emerging trends on the market

iv.

Key factors of success:

a. Availability (meeting local demand by increasing production locally);
b. Acceptability (building brand equity);
c. Affordability (pricing higher than local brands, but adapting to local
conditions).

v.

The heart of any campaign is not just the product but

also the position it holds in people's minds.

8. As there was a developing pattern of a move towards healthier lifestyle in India,

adding new items to the product offering was a profound move by both the
organizations Coca Cola and Pepsi. Henceforth both Coca Cola and Pepsi entered
the bottled water genre as opposed to keeping on concentrating on their main items
- Carbonated drinks and cola based beverages specifically. Pepsi and Coke reacted
to the declining fame of soda pops. Alternate classifications they focused on were
organic product juices, juice based beverages and water. Coca Cola presented
Kinley brand of bottled water and accomplished 28% percent rise in only 2 years.

9. As the market is saturated with caffeinated drinks with Red Bull and Sobe in India,
and since there is extreme rivalry at the retail locations, focusing on new

distribution channels at first like bars, pubs and gym centers appears like an
awesome move for brand penetration. Once the viability of the brand is tried at
these option dissemination focuses, Coca-Cola can bit by bit rise above into the
retail locations since the Coke Burn would as of now have its presence in the market
and the majority of the general population who go to these centers will know about
the item. Coca Cola can then alter their estimatings abd pricings to make a great
consumer base for Coke Burn. Since the caffeinated beverages was assessed to
develop to $370 billion in 2013 and it keeps on developing, adding more up to date
items to the product offering like Coke Burn would be truly helpful for the
organization.