Prestige Institute of Management and Research, Indore

(An Autonomous Institution Established in 1994, Accredited with Grade A++ NAAC (UGC) ISO 9001: 2008 Certified
Institute, AICTE / UGC Approved Programs affiliated to DAVV, Indore)

(Session 2020 – 2022)

Case Study on
“Coke and Pepsi learn to Compete in India”
Presented To:- Presented By:-
Dr. Murlidhar Panga Kartik Kesharwani
Pranshu Sharma
Aalok Ghosh
 INDIA : THE BEVERAGE BATTLEFIELD
• In India over 45% of the soft drink industry consisted of small manufacturer's in the year of 1993

• The combined business was worth $3.2 million dollars

• Parle Agro, Pure Drinks, Modern Foods, McDowell's

• Coca Cola had been present in the Indian market since 1958

• Coca Cola decides to withdraw from India in the year of 1977, following a dispute over its trade secret

• Parle, the market leader, establishing export franchise businesses setting up production plants and
serving new markets
• Parle- heavy investment on image advertising

• Parle avoided direct comparison with Coke and Pepsi

• Competition from the non-carbonated drinks

 INDIAN MARKET : OPENING DOORS

• Economic crisis in the year of 1991

• Falling foreign exchange reserves, tightly controlled imports, reducing

industrial production

• “Principle of indigenous availability”

• Liberalization of the Indian economy and removing complicated trade rules

and regulations

• Increased foreign investment

PEPSICO AND COCA- COLA ENTER THE INDIAN
MARKET

• PepsiCo entered • Joint venture • Stringent

• Lehar 7up and
the Indian market with two local conditions were
Lehar Pepsi.
in 1986. partners. imposed.

• Coca-Cola • Joining forces • Later, local

• Competition entered the Indian with Britannia producers joined
from Parle. market segment in Industries India forces with Coca-
1993. Ltd. Cola.
MARKETING CAMPAIGN
Seasonal sales promotion during festivals – Navaratri Campaign

Coca-Cola: Thumbs Up Toofani Ramjhat, buy one get one free, free trip to Goa
PepsiCo: Sponsorship of “garbha” competition, Tied up with Gujarati TV channel, Mega
offer with 300 ml Pepsi bottle
TV Campaign : PepsiCo
Summer campaign featuring 7UP with slogan “Keep it cool”. 200 ml bottle was introduced in
this campaign.
Ad campaign using Bollywood stars, cricket and football players.
New product PEPSI BLUE was launched during the ad campaign and was positioned as a
limited edition
NEW PRODUCT CATEGORY
• The brand also
focused on fruit
• Demand for
juices, juice based
carbonated drinks
• Coca Cola drinks as the
not growing, only 1
(Kinley) and consumers started to
percent growth
PepsiCo (Aquafina) be conscious about
between 1999 to
launched their own their health and
2006. But the
brands of bottled wellness. Also the
demand for bottled
water. brand wanted to
water was
make sure they were
increasing rapidly.
not dependent on a
single product.
 CONTAINMENT ALLEGATION:THE BATTLE
GROUND SHIFT

• Coca-Cola now leads • A competitive battle in

• Content of pesticides
• In a production of 3lac the industry in sales, it shifting from urban
residue was claimed to
Ltr of soda drink a day owns 1 and 2 brands, areas to vast rural
be found in 2003,
uses 1.5, million Ltr of Thumps Up and Coke, regions in India, its
leading to close of plant,
water, enough to meet the firm turned a profit nonalcoholic beverage
until corporation won a
the requirement of in India in 2010 for the industry experience a
court ruling allowing
20,000 people first time after its reentry growth of 10 percent per
them to reopen.
in 1993. year for the past decade.