Preview

Coca-Cola in India

Satisfactory Essays
Open Document
Open Document
420 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Coca-Cola in India
Coca-Cola in India

1. What aspects of U.S. and Indian culture may have been a cause of Coke's difficulties in India?

There are four areas that of culture differences may cause the Coke’s difficulties in India. First of all, is the spoken and written language. During the contact with the India government, there might comes out some misunderstood with language express. Secondly is the service and empowerment. Asian culture is more conservative and the U.S. pays more attention on empowerment issues. Thirdly, is the laws, laws in the U.S. is much more wholesome than India. Fourthly, is the flavor preference difference between the two countries, that is why coke is not as popular in India as the America.

2. How might Coca-Cola have responded differently when this situation first occurred, especially in terms of reacting to negative perceptions among Indians of Coke and other MNCs?

Firstly, it should apologize for the destroying of water resources in India, and then do some compensate for the villagers of Plachimada, like money or spring water, or other marketing strategies in that area. Find ways to solve the problem because it still needs to plant there. Give guarantees via publics to ensure not destroy environment anymore. It is very important to MNCs to built good reputation and consumer loyalty in international market.

3. If Coca-Cola wants to obtain more of India’s soft drink market, what changes does it need to make?

Firstly, it should change its style of advertisement to fit the flavor of Indian people and Indian culture. The package of the can add some Indian cultural factors to show Coca-Cola company pays more attention on Indian market. Take more corporate social responsibilities as PepsiCo did. Some of Pepsi’s corporate social responsibility efforts have involved digging village wells, initiated efforts to reduce water waste at its Indian facilities because India is a country which lack of water resource.

4. How might

You May Also Find These Documents Helpful

  • Satisfactory Essays

    What issues are likely to arise in a developing country when a global giant like Coca-Cola begins operations there? What kinds of advantages does such an expansion bring to the globalizing organization? Support your thoughts with research. Respond to at least two of your fellow students…

    • 610 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    The Coca-Cola Company is the industry leader in selling soft drinks. Its brand is easily recognized and well established. A well designed integrated communication marketing plan is critical to the success of the launch of Coca-Cola…

    • 3117 Words
    • 13 Pages
    Powerful Essays
  • Powerful Essays

    Coke and Pepsi Issues

    • 5071 Words
    • 21 Pages

    Buchholtz/Carroll. (2007 January 31st). Business and Society 7th Edition. Case 23 Coke and Pepsi in India: Issues, Ethics, and Crisis Management Pg.855 – 860. Publish by Nelson Education Ltd.…

    • 5071 Words
    • 21 Pages
    Powerful Essays
  • Satisfactory Essays

    Coke & Pepsi in india

    • 700 Words
    • 3 Pages

    Q 4) why does it seem that Coke has become a larger and more frequent target than Pepsi in India? Did having and Indian born CEO help Pepsi’s case?…

    • 700 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Coca Cola Case Study

    • 1918 Words
    • 8 Pages

    Firstly, Gupta must understand that Coca Cola has faced several crisis in the past. On February 2003, CSE (Center for Science and Environment), an activist group in India has already brought the issue about Coca-Cola’s Kinley Bottled water which was declared containing pesticides residues, six months before they brought up the same issue about Coca Cola. Since Coca Cola India remained silent about the first issue, the buzz was created and spread, made it even harder to maintain the situation. While in 1997, Coca Cola also had a problem in India. They had to leave India, instead of revealed their formula to government, when Janata Party led India and oblige Coca Cola, and other foreign companies, to dilute their equity stake until 40%, as written under Foreign Exchange Regulation Act (FERA). Any other crisis were happened too on other countries such as in Belgium and Atlanta.…

    • 1918 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Sanjiv Gupta, President and CEO of Coca Cola in India, is facing a crisis concerning pesticide levels in coke in the country of India. The Center for Science and Environment (CSE), an activist group in India focused on environmental sustainability issues issued a press release stating: "12 major cold drink brands sold in and around Delhi contain a deadly cocktail of pesticide residues" (Argenti, p. 284). Recommendations for Coke’s communications strategies include accepting and adhering to higher standards of social responsibility in India and forming an alliance with the government to set these higher safer standards.…

    • 857 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Coca-Cola is the leading brand of the world in soft drink category. It was founded by a pharmacist in Georgia known by the name of John Pemberton. He used to sell a potion for physical as well as mental disorders. However, the potion soon turned into world’s largest selling brand after carbonated water in addition to fountain water with other constituents were added to the brand. Furthermore, soon after the addition of carbonated water, Coca-Cola brand was given the honor of 1887 and in just year of two years, the brand began to spread its sales all over the world. However, the brand got under the wave of ten billion cases in the past decades, which made its growth come to sudden plunge and with lesser improvement in the sales. During the era of 2000, the brand had per annual sale growth of 0.2 %, which is a deep loss for the company as back in 1980s, its sales growth, had been 5-7%. Furthermore, as it began its sales in India, the Coca-Cola began to see its rise again since the brand became a favorite of the one billion population of the country, which comprised of every rural or urban part of the community.…

    • 1062 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    Coke and Pepsi in India

    • 1554 Words
    • 7 Pages

    While Pepsico and Coca-Cola are both multinational corporations (MNCs) with extensive experience in international operations, their business dealings in India are not their most long held nor the least problematic. Pepsico has the most longevity in Indian operations having started there in 1988. This allowed Pepsico to establish a stronghold in the Indian market prior to Coca-Cola’s entry in 1993. Both of these MNCs experienced difficulty in establishing their companies, and while they have made some great headway they have also experienced some extreme business angst along the way.…

    • 1554 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    This is an interesting topic because it tells us how the Coca-Cola Company maintained a strong brand identity in the global markets over the years and how it built that brand image in the first place. It also tells us about how Coca-Cola could persuade various people with different cultural backgrounds and ideologies to buy the same product.…

    • 5704 Words
    • 16 Pages
    Powerful Essays
  • Satisfactory Essays

    Coca Cola

    • 467 Words
    • 2 Pages

    3. How would you characterize the strategy pursued by Coca-Cola under Isdell’s leadership? What is the trying to do? How is this different from the strategies of both Goizueta and Daft? What are the benefits? What are the potential costs and risk?…

    • 467 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Coke vs Pepsi in India

    • 6695 Words
    • 27 Pages

    The experience ofthe world 's two giant soft drinks companies in India during the 1990s and the beginning of the new millennium was not a happy one, even though the government had opened its doors wide to foreign companies. Both companies experienced a range ofunexpected problems and difficult situations that led them to recognize that competing in India requires special knowledge, skills, and local expertise. In many ways, Coke and Pepsi managers had to learn the hard way that "what works here" does not always "work there." In spring 2003, Alex von Behr, the president of Coca-Cola India, admitted ruefully, "The environment in India is challenging, but we 're learning how to crack it."…

    • 6695 Words
    • 27 Pages
    Powerful Essays
  • Powerful Essays

    Coca-Cola India Case

    • 9362 Words
    • 38 Pages

    On August 20, 2003 Sanjiv Gupta, President and CEO of Coca-Cola India, sat in his office contemplating the events of the last two weeks and debating his next move. Sales had dropped by 30-40%1 in only two weeks on the heels of a 75% five-year growth trajectory and 25-30%2 year-to-date growth. Many leading clubs, retailers, restaurants, and college campuses across the country had stopped selling Coca-Cola3 and only six weeks into his new role as CEO, Gupta was embroiled in a crisis that threatened the momentum gained from a highly successful two-year marketing campaign that had given Coca-Cola market leadership over Pepsi. On August 5th, The Center for Science and Environment (CSE), an activist group in India focused on environmental sustainability issues (specifically the effects of industrialization and economic growth) issued a press release stating: "12 major cold drink brands sold in and around Delhi contain a deadly cocktail of pesticide residues" (See Exhibit 1). According to tests conducted by the Pollution Monitoring Laboratory (PML) of the CSE from April to August, three samples of twelve PepsiCo and Coca-Cola brands from across the city were found to contain pesticide residues surpassing global standards by 30-36 times including lindane, DDT, malathion and chlorpyrifos (See Exhibit 2). These four pesticides were known to cause cancer, damage to the nervous and reproductive systems, birth defects, and severe disruption of the immune system.4 In reaction to this report, the Indian government banned Coke and Pepsi products in Parliament and state governments launched independent investigations, sending soft drink samples to labs for testing. The Coca-Cola Bottling Company (Coke) stock dipped by five dollars on the New York Stock Exchange from $55 to $50 in the six sessions following the August 5 disclosure, as did shares of Coca-Cola Enterprises (CCA).5 Pepsi and Coca-Cola called the CSE allegations “baseless” and questioned the method of…

    • 9362 Words
    • 38 Pages
    Powerful Essays
  • Better Essays

    Coca Cola Case Study

    • 1333 Words
    • 5 Pages

    1.What are the pricing strategies adopted by Coca Cola brand in the three key markets of India, China and USA? (15 points)…

    • 1333 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Analysis on Cocacola Market

    • 8049 Words
    • 33 Pages

    As a brand Coca-Cola has the “top of the mind” awareness in the mind of the consumers, but it is on the way of losing it’s brand image in Bangladesh. For the last couple of years, there was not a single advertisement aired in TV or printed in media by Coca-Cola. As a result they are loosing their position and new comers are capturing the market. It is not even cola market now; it has converted to lemon drinks market. RC lemon, Lemu, Mountain Dew became very famous brands within few months of launching. Businessmen see good opportunities in soft drinks market.…

    • 8049 Words
    • 33 Pages
    Powerful Essays
  • Good Essays

    Cocacola

    • 844 Words
    • 4 Pages

    The Cola wars went on full-fledged till 2003, when a pesticide controversy forced Coke and Pepsi to fight on the same side in so called “India's New Cola Wars”.…

    • 844 Words
    • 4 Pages
    Good Essays