Coke and Pepsi Learn To Compete in India 1. The political environment in India has proven to be critical to company performance for both PepsiCo and Coca-Cola India. What specific aspects of the political environment have played key role? Could these effects have been anticipated prior to market entry? If not‚ could developments in the political arena have been handled better by each company? Answer The political environment have played key role as follow: - Indian government viewed
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Case 1-3 Coke and Pepsi Learn to Compete in India 1. 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
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1. The political environment in India has proven to be critical to company performance for both PepsiCo and Coca-cola India. What specific aspects of the political environment played key roles? Could these effects have been anticipated prior to market entry? If not‚ could developments in the political arena have been handled better by each company? 2. Timing of entry into Indian market brought different results for PepsiCo and Coca-Cola India. What benefits or disadvantages as a result of earlier
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Coke and Pepsi Learn to Compete in India CASE STUDY 2 International Marketing 1. The political environment in India has proven to be critical to company performance for both PepsiCo and Coca- Cola India. What specific aspects of the political environment have played key roles? Could these effects have been anticipated prior to market entry? If not‚ could developments in the political arena have been handled better by each company? There are several specific aspects of the political environment
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COKE AND PEPSI LEARN TO COMPETE IN INDIA Brief Overview: * The case of Coke and Pepsi in India is a lesson that all marketers can observe‚ analyze and learn from‚ since it involves so many marketing aspects that are essential for all marketers to take into consideration * Pepsi entered into the Indian beverage market in July 1986 as a joint venture with two local partners‚ Voltas and Punjab Agro‚ forming “Pepsi Foods Ltd.” While Coca-Cola followed suit in 1990 with a joint venture
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Coke and Pepsi in the Twenty-First Century: Threat of Entry:low 1. Economies of scale - High production volume but merit not clear (1st paragraph on page 2) 2. Product differentiation - Brand identification (high advertising expense‚ Exhibit 2) 3. Capital requirements - CPs: little capital investment (1st paragraph on page 2) - Bottlers: capital intensive (2nd paragraph on page 3) 4. Cost disadvantages independent of size - No 5. Access to distribution channels - Food stores (35%): intense
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Case Study: Coke & Pepsi learn to compete in India Timing of entry into the Indian market brought different results for PepsiCo and Coca-Cola India. What benefits or disadvantages accrued as a result of earlier or later market entry? Coca-Cola (1990) Benefits: advantages as „Early-Follower“‚ possibility to use reliable market information that´s already existing take-over of standards position as international market leader Disadvantages: expert knowledge of competitors has to be overtaken
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Case Study: Coke and Pepsi in India: Coca-Cola controlled the Indian market until 1977‚ when the Janata Party beat the Congress Party of then Prime Minister Indira Gandhi. To punish Coca-Cola’s principal bottler‚ a Congress Party stalwart and longtime Gandhi supporter‚ the Janata government demanded that Coca-Cola transfer its syrup formula to an Indian subsidiary. Coca-Cola balked and withdrew from the country. India‚ now left without both Coca-Cola and Pepsi‚ became a protected market. In the
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Pepsi is a manufacturer or use manufacturers‚ market and sell a variety of salty‚ sweet and grain-based snacks‚ carbonated and non-carbonated beverages‚ and foods through their North American and international divisions. B) Coca-Cola has the dominant position in beverage sales. C) Coca-Cola 2006 $29‚963‚ 2007 $43‚269 The difference is $13‚306 for a 44.4% increase. Pepsi 2006 $29‚930‚ 2007‚ $34‚628 The difference is $4‚698 for a 15.6% increase. D) Pepsi had
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This chapter focuses on how global companies enter different markets across the world. We will take up how companies operate in global markets in the next chapter and global branding in Chapter 8 as these topics deserve a separate treatment. Key issues in global marketing: Typically‚ marketing includes the following activities: - ▪ Market research. ▪ Concept & idea generation. ▪ Product design. ▪ Prototype development & test marketing ▪ Selection of packaging material
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