Preview

Marketing Initiatives: Coca-Cola India

Good Essays
Open Document
Open Document
590 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Marketing Initiatives: Coca-Cola India
The post-liberalization period in India saw the re-entry of Coca-cola. But Pepsi had already gained an edge by creatively entering the market in the 1980’s in advance of liberalization by way of a joint venture. It allowed Pepsi to gain precious early experience with the Indian market and also served as an introduction of the Pepsi brand to the Indian consumer such that it was well-poised to reap the benefits when liberalization came. Though Coke benefited from Pepsi creating demand and developing the market, Pepsi’s head-start gave Coke a disadvantage in the mind of the consumer. Pepsi’s appeal focused on youth and when Coke entered India in 1993 and approached the market selling an American way of life, it failed to resonate as expected.

Marketing Strategy
Coca-Cola CEO Douglas Daft set the direction for the next generation of success for his global brand with a “Think local, act local” mantra. Recognizing that a single global strategy or single global campaign wouldn’t work, locally relevant executions became an increasingly important element of supporting Coke’s global brand strategy.

Brand Localization Strategy: The Two Indias

India A: “Life ho to aisi”
“India A,” the designation Coca-Cola gave to the market segment including metropolitan areas and large towns, represented 4% of the country’s population. This segment sought social bonding as a need and responded to aspirational messages, celebrating the benefits of their increasing social and economic freedoms. “Life ho to aisi,” (life as it should be) was the successful and relevant tagline found in Coca-Cola’s advertising to this audience.

India B: “Thanda Matlab Coca-Cola”
Coca-Cola India believed that the first brand to offer communication targeted to the smaller towns would own the rural market and went after that objective with a comprehensive strategy. “India B” included small towns and rural areas, comprising the other 96% of the nation’s population. This segment’s primary need was



References: www.coca-colaindia.com

You May Also Find These Documents Helpful

  • Powerful Essays

    Coca-Cola continues to be an industry leader in offering and reinventing some of its core drink products in new global markets. The company currently has captured over 50% of the soft drink market and seeks to obtain 55% or better in the next three years. With the introduction of its latest product, millions of new customers can be reached. The New Product Launch Marketing Team is prepared to introduce the “Snatch a Pack” in both the domestic and global markets; with a great push on its Coca-Cola International India’s market. An emphasis is placed on Coca-Cola International India because it is one of the most populous countries in the world and is receptive to international trade. The product is cost-effective, easy to use, and very flexible. Launching the product, “Snatch a Pack” will help the company expand its customer base while increasing revenues by an estimated $2.5 billion. An integrated communication marketing plan will be developed to ensure that market segmentations are identified and communication channels are established. Pricing strategies for the Snatch a Pack will be defined and distribution plans established. An integrated communications marketing plan will be designed, three year objectives defined, and a description of the milestones to be implemented presented for the new product lunch. In addition Coca-Cola New Product Launch Team will create a budget to Market the “Snatch a Pack” and establish an evaluation process to ensure that resources are employed in an efficient and effective manner…

    • 3117 Words
    • 13 Pages
    Powerful Essays
  • Better Essays

    America is bent in a health crisis and Coke stands to continue making billions from it. Knowing the image of Coke as fun and classic, being shown as a healthy product has not been one of Coca-Cola’s main focuses. The creative thinker of Cokes’ marketing team’s organizational strategy involves the process of promoting their version of health through their products Dasani, Glaceau Vitamin Water, Smart Water (Energy Brand) and Coke Zero. Doing this the company can stay true to their traditional consumers while still gaining potential new ones with an opposite way of thinking although both sides still showing loyalty to Coca-Cola. Coke has done target promoting in the urban…

    • 1306 Words
    • 6 Pages
    Better 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 Limited is one of the leading soft drinks companies which are operating around the world. The company was started in 1886 and is running successfully for 125 years. Bell (2003) claimed that people in nearly 200 countries drink more than one billion eight-ounce (237 ml) servings of Coca-Cola products every day. So, Coca Cola can be said as the favorite brand of the consumers. It has offered various types of products for the customers like Coca-Cola, Diet Coke, Coke Zero,Sprite, Fanta, Relentless etc. to satisfy its customer. Coca Cola Limited wants to be part of customer’s fun, entertainment, happiness and sharing. For that reason, the company mainly focuses on the happiness of the customers and they started some campaign related to happiness. Coca Cola limited uses integrated marketing communication for maintaining relationships with the customers. Within this report, researchers will find out the marketing communication strategies, objectives, theories, and others marketing communication factors related to Coca-Cola Company. Finally, the readers will get clear idea about the marketing communication strategies of this company.…

    • 5346 Words
    • 22 Pages
    Powerful Essays
  • Good Essays

    Coca Cola should choose to emerge and set itself apart from its biggest competitor, Pepsi, by accepting a more socially responsible. In order to accomplish this, Coke can align itself with the CSE goals for an environmentally safe and industrialized India. Coke should recognize the enormous reputational benefits that could come from such a partnership in correcting the pollution problem in India. Taking on social responsibilities has a number of positive outcomes for corporate leaders. Once the world community learns of Coke’s environmentally responsible goal in India, the company will project a positive interest in India and to the rest of the world (Argenti, p.65 ). The people of India have shown that they want a company that is concerned about their health, welfare, and environment as “sales down over 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” (Argenti, p.285 ) A positive reputation can help companies weather crises more effective (Argenti, p. 91)…

    • 857 Words
    • 4 Pages
    Good 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
  • Good Essays

    Route to Market

    • 2246 Words
    • 9 Pages

    Now, the beverages of the $31 billion multinational are back on the shopping lists of Indian consumers, and Coca-Cola India is reaping the rewards. At the end of last year, its sales volume grew more than 30% and it turned a profit for the first time since it returned to the country in 1993 after a 16-year hiatus, according to Atul Singh, who was appointed the firm's Delhi-based president and CEO of Coca-Cola India and southwest Asia in 2005. Much of last year's growth for Coca-Cola -- and its rival PepsiCo -- came from urban and semi-urban markets, but experts note that Coca-Cola's rural push helped it consolidate its overall market leadership.…

    • 2246 Words
    • 9 Pages
    Good Essays
  • Good Essays

    This case delves into whether or not Pepsi and Coke are equal targets in India. It questions whether the companies are doing their ethical duties, as well as whether they are managing crises and stakeholders well.…

    • 950 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Opportunities- Pepsi-Cola International changed their brand name in India, as directed by the Indian government, to Lehar Pepsi because they wanted to make sure they got an early entry while the market was developing. Pepsi formed a joint venture with two local partners. Pepsi’s advertising was held during the cultural festival of Navrartri. Pepsi also had the sponsorship of famous Indian cricket and soccer players known globally. On the other hand, Coca-Cola formed a joint-venture with the local leader. Coca-Cola hired several famous Bollywood actors to endorse their products and used a strategy of “building a connect using the relevant local idioms.”…

    • 395 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Pepsi enters in the Indian market before Coca- Cola Company and also gained the 26% of the market by the year 1993.…

    • 1074 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    While PepsiCo entered India in 1988, Coca-Cola only managed to properly re-enter the Indian market in 1993, a whole 5 years after its rival. Both companies’ ventures faced some strict conditions from the government. However,…

    • 1805 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    The soft drink market is a duopoly worldwide and India is no exception. 95% of sales are shared between 2 companies- PepsiCo and Coca-Cola. Soft-drink is a product with very little differentiation and high degree of impulse purchases. Given these two facts, Place and Promotion assume paramount importance in the marketing of soft-drinks.…

    • 1567 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Pepsi Strategy to India

    • 1917 Words
    • 8 Pages

    The case discusses the major strategies adopted by Pepsi Co (Soft drinks & snack food major) to enter the Indian market in the late 1980s. Initially the company found it very hard to sell itself to the Indian government as the Indian economy was highly regulated. So to lure Indian government Pepsi Co made promises of working towards enrichment of the rural economy Punjab by getting involved in the agricultural activities. Pepsi Co also made several promises to make its proposal look very attractive to the Indian government.…

    • 1917 Words
    • 8 Pages
    Good Essays
  • Powerful Essays

    Issues Related to Indian Beverage Market-----------------------------16 15. SWOT Analysis Of Indian Beverage Industry---------------------------18 16. The Leading Beverage Companies And Their Competitive Brands----19 • Coca Cola Company-----------------------------------------------20 • PepsiCO India------------------------------------------------------23 • UB Group-----------------------------------------------------------28 • Dabur India Limited-----------------------------------------------30 • Red Bull------------------------------------------------------------32 • Café Coffee Day---------------------------------------------------34 • Nestle India--------------------------------------------------------35 • Tata Global Beverages Ltd----------------------------------------37 17. Major Markets…

    • 15082 Words
    • 61 Pages
    Powerful Essays