Coke Vs Pepsi
1. The Indian market is enormous in terms of population and geography. How have the two companies responded to the sheer scale of operations in India in terms of product policies, promotional activities, pricing policies, and distribution arrangements?
For product policies, they have already entered products close to those already available in India such as carbonated waters and fruit drinks.
For promotional activities, Pepsi has a sponsorship at Navrati, a TV campaign using sports and celebrities while Coca-Cola has events and lifestyle focus such as vacations giveaways.
For pricing policies, Pepsi uses an aggressive pricing policy to get immediate market share from Indian competitors while Coca-Cola have huge reductions up to 15-25%.
For distribution arrangements, production plants and bottling centres are placed in large cities all around India.
2. 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?
Pepsi Advantages - They entered the market Before Coca-Cola and were able to gain a foothold in the market while it was still developing.
Pepsi Disadvantages -Were forced to change their name to Lehar Pepsi
Coca-Cola Advantages - Were able to buy 4 bottling plants from industry leader Parle Agro
Coca-Cola Disadvantages - Denied entry until 1993 because Pepsi was already there which makes it harder to establish market share with Pepsi there.
3. “Global localization” (glocalization) is a policy that both companies have implemented successfully. Give examples for each company from the case.
Pepsi - In 1990, Pepsi Foods Ltd. changed the name of their product to "Lehar Pepsi" to conform to foreign collaboration rules.
Coca-Cola - ran special promotions where people could win free vacations to Goa, a resort state in western India.
4. What lessons can each company draw from its Indian experience as it contemplates entry into other
For product policies, they have already entered products close to those already available in India such as carbonated waters and fruit drinks.
For promotional activities, Pepsi has a sponsorship at Navrati, a TV campaign using sports and celebrities while Coca-Cola has events and lifestyle focus such as vacations giveaways.
For pricing policies, Pepsi uses an aggressive pricing policy to get immediate market share from Indian competitors while Coca-Cola have huge reductions up to 15-25%.
For distribution arrangements, production plants and bottling centres are placed in large cities all around India.
2. 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?
Pepsi Advantages - They entered the market Before Coca-Cola and were able to gain a foothold in the market while it was still developing.
Pepsi Disadvantages -Were forced to change their name to Lehar Pepsi
Coca-Cola Advantages - Were able to buy 4 bottling plants from industry leader Parle Agro
Coca-Cola Disadvantages - Denied entry until 1993 because Pepsi was already there which makes it harder to establish market share with Pepsi there.
3. “Global localization” (glocalization) is a policy that both companies have implemented successfully. Give examples for each company from the case.
Pepsi - In 1990, Pepsi Foods Ltd. changed the name of their product to "Lehar Pepsi" to conform to foreign collaboration rules.
Coca-Cola - ran special promotions where people could win free vacations to Goa, a resort state in western India.
4. What lessons can each company draw from its Indian experience as it contemplates entry into other