可口可樂與百事可樂在印度的商業(yè)競爭CokeandPeps

1、1Coke and Pepsi Learn to Compete in IndiaBy Diana Berger, Arthur Catlin, Ian Cavanaugh, Larry Cenotto, Dave Christiansen, and Matt Ross2Background of Beverage Industry in India Coca-Colas past in India Present from 1958 until 1977 Industry Shakeup in 1988 State of the Industry in 1993 45% of market

2、consisted of small manufacturers $3.2 million market share Low Demand for Carbonated Drinks Average of 3 servings a year/person in 1989 Average of 1404 servings a year/person in U.S. in 20033Political Environment in India4Political Environment in India Key Issues India seen as unfriendly to foreign

3、investors for many years The “Principle of Indigenous Availability” Policy banning imports being sold in India The Liberalization of Indias Government in 1991 “New Industrial Policy” Trade rules & regulations simplified Foreign investment increased Pepsi enters in 1986 Coca-Cola follows in 19935

4、Political Environment in India Indian Laws Unlawful to market under their Western name in India Pepsi became “Lehar Pepsi” Coca-Cola merged with Parle and became “Coca-Cola India” Different Laws for Pepsi and Coke Coca-Cola agreed to sell off 49% of its stock as a condition of entering and buying ou

5、t an Indian company Pepsi entered earlier, and was not subject to this6Political Environment in India Problems India forced Coke to sell 49% of its equity to Indian investors in 2002 Coke asked for a second extension that would delay it until 2007 India denied this Pepsi was held to this since they

6、entered India in a different year. Coke asked the Foreign Investment Promotion Board to block the votes of the Indian shareholders who would control 49% of Coke Change in oversight of the FIPB Past lobbying efforts made useless7Political Environment in India Could these problems have been forecasted

7、 prior to market entry? Probably not Inconsistent, and changing government How could these developments in the political arena have been handled differently? Coke could of agreed to start new bottling plants instead of buying out Parle, and thus wouldnt of had to agree to sell 49% of their equity8Ti

8、ming of Market Entry9Timing of Market Entry Pepsi (early entry-1986) Advantages Entered the market Before Coca-Cola and was able to gain a foothold in the market while it was still developing Gained 26% market share by 1993 Disadvantages Were forced to change their name to Lehar Pepsi Govt. limited

9、their soft drink sales to less than 25% of total sales Struggled to fight off local competition10Timing of Market EntryCoca-Cola (late entry-1993) Advantages Were able to buy 4 bottling plants from industry leader Parle Also bought Parles leading brands: Thums Up, Limca, Citra, Gold Spot and Mazaa S

10、et up 2 new ventures with Parle to bottle and market product Disadvantages Denied entry until 1993 because Pepsi was already there Harder to establish market share with Pepsi there Were not allowed to buy back 49% of equity11Responses to Indias Enormity Pepsi and Coca-Cola responded in many ways to

11、the enormity of India in terms of it population and geography12Responses to Indias Enormity Product Policies Catering to Indian tastes Entering with products close to those already available in India such as colas, fruit drinks, carbonated waters Waiting to introduce American type drinks Coca-Cola i

12、ntroducing Sprite recently Introducing new products Bottled water13Responses to Indias Enormity Promotional Activities Both advertise and use promotional material at Navrartri Pepsi gives away premium rice and candy with Pepsi Coca-Cola offers free passes, Coke giveaways as well as vacations Use of

13、different campaigns for different areas of India “India A” campaigns try to appeal to young urbanites “India B” campaigns try to appeal to rural areas14Responses to Indias Enormity Pricing Policies Pepsi started out with an aggressive pricing policy to try to get immediate market share from Indian c

14、ompetitors Coca-Cola cut its prices by 15-25% in 2003 Attempt to encourage consumption to try to compete with Pepsi and gain market share15Responses to Indias Enormity Distribution Arrangements Production plants and bottling centers placed in large cities all around India More added as demand grew a

15、nd as new products were added16Coke and Pepsis “Glocalization Strategies” What is “Glocalization”? Global + Localization = Glocalization By taking a product global, a firm will have more success if they adapt it specifically to the location and culture that they are trying to market it in. Both comp

16、anies have successfully implemented glocalization17Pepsis Glocalization Pepsi forms joint venture when first entering India with two local partners, Voltas and Punjab Agro, forming “Pepsi Foods Ltd”. In 1990, Pepsi Foods Ltd. changed the name of their product to “Lehar Pepsi” to conform with foreign

17、 collaboration rules. In keeping with local tastes, Pepsi launched its Lehar 7UP in the clear lemon category.18Pepsis Glocalization Advertising is done during the cultural festival of Navrartri, a traditional festival held in the town of Gujarat which lasts for nine days.Pepsis most effective glocal

18、ization strategy has been sponsoring world famous Indian athletes, such as cricket and soccer players.19Coca-Colas Glocalization First joined forces with the local snack food producer Britannia Industries India Ltd. in the early 90s. Formed a joint venture with the market leader Parle in 1993 For th

19、e festival of Navrartri, Coca-Cola issued free passes to the celebration in each of its “Thums Up” bottles Also ran special promotions where people could win free vacations to Goa, a resort state in western India20Coca-Colas Glocalization Coca-Cola also hired several famous “Bollywood” actors to end

20、orse their products. Who could forgetVivek OberoiAishwarya Rai21Coca-Cola Indias Mistakes Enters Market at the Wrong Time By entering at this time, Coca-Cola India agreed to abide by all the Foreign Investment Laws of that year. Coca-Cola India tries to expand investment Government allowed acquisiti

21、on only if Coca-Cola agreed to sell 49% of equity within 2 years Coca-Cola tried to get extensionstwice India granted the first extension, denied the second Coca-Cola India tried to deny the upcoming Indian shareholders voting rights Foreign Investment Promotion Board (FIPB) Denies This22Coca-Cola Indias Mistakes 1st Mistake Coca-Cola should have been more careful of when they entered the market and what they were promising when they entered. 2nd Mistake Coca-Cola should not have tried to weasel their way out of promises that they made. These mistakes hurt Coca-Colas image and reputation as