可口可樂與百事可樂在印度的商業(yè)競爭CokeandPepsppt課件

1、Coke and Pepsi Learn to Compete in IndiaBy Diana Berger, Arthur Catlin, Ian Cavanaugh, Larry Cenotto, Dave Christiansen, and Matt RossBackground of Beverage Industry in IndiaCoca-Colas past in IndiaPresent from 1958 until 1977Industry Shakeup in 1988State of the Industry in 199345% of market consist

2、ed of small manufacturers$3.2 million market shareLow Demand for Carbonated DrinksAverage of 3 servings a year/person in 1989Average of 1404 servings a year/person in U.S. in 2003Political Environment in IndiaPolitical Environment in IndiaKey IssuesIndia seen as unfriendly to foreign investors for m

3、any yearsThe “Principle of Indigenous AvailabilityPolicy banning imports being sold in IndiaThe Liberalization of Indias Government in 1991“New Industrial PolicyTrade rules & regulations simplifiedForeign investment increasedPepsi enters in 1986Coca-Cola follows in 1993Political Environment in India

4、Indian LawsUnlawful to market under their Western name in IndiaPepsi became “Lehar PepsiCoca-Cola merged with Parle and became “Coca-Cola IndiaDifferent Laws for Pepsi and CokeCoca-Cola agreed to sell off 49% of its stock as a condition of entering and buying out an Indian companyPepsi entered earli

5、er, and was not subject to thisPolitical Environment in IndiaProblemsIndia forced Coke to sell 49% of its equity to Indian investors in 2002Coke asked for a second extension that would delay it until 2007 India denied thisPepsi was held to this since they entered India in a different year.Coke asked

6、 the Foreign Investment Promotion Board to block the votes of the Indian shareholders who would control 49% of Coke Change in oversight of the FIPBPast lobbying efforts made uselessPolitical Environment in IndiaCould these problems have been forecasted prior to market entry?Probably notInconsistent,

7、 and changing governmentHow 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 equityTiming of Market EntryTiming of Market Entry Pepsi (ea

8、rly entry-1986)Advantages Entered the market Before Coca-Cola and was able to gain a foothold in the market while it was still developingGained 26% market share by 1993DisadvantagesWere forced to change their name to Lehar PepsiGovt. limited their soft drink sales to less than 25% of total salesStru

9、ggled to fight off local competitionTiming of Market EntryCoca-Cola (late entry-1993)AdvantagesWere able to buy 4 bottling plants from industry leader ParleAlso bought Parles leading brands: Thums Up, Limca, Citra, Gold Spot and MazaaSet up 2 new ventures with Parle to bottle and market productDisad

10、vantagesDenied entry until 1993 because Pepsi was already thereHarder to establish market share with Pepsi thereWere not allowed to buy back 49% of equityResponses to Indias EnormityPepsi and Coca-Cola responded in many ways to the enormity of India in terms of it population and geographyResponses t

11、o Indias EnormityProduct PoliciesCatering to Indian tastesEntering with products close to those already available in India such as colas, fruit drinks, carbonated watersWaiting to introduce American type drinksCoca-Cola introducing Sprite recentlyIntroducing new productsBottled waterResponses to Ind

12、ias EnormityPromotional ActivitiesBoth advertise and use promotional material at NavrartriPepsi gives away premium rice and candy with PepsiCoca-Cola offers free passes, Coke giveaways as well as vacationsUse of different campaigns for different areas of India“India A campaigns try to appeal to youn

13、g urbanites“India B campaigns try to appeal to rural areasResponses to Indias EnormityPricing PoliciesPepsi started out with an aggressive pricing policy to try to get immediate market share from Indian competitorsCoca-Cola cut its prices by 15-25% in 2003 Attempt to encourage consumption to try to

14、compete with Pepsi and gain market shareResponses to Indias EnormityDistribution ArrangementsProduction plants and bottling centers placed in large cities all around IndiaMore added as demand grew and as new products were addedCoke and Pepsis “Glocalization StrategiesWhat is “Glocalization?Global +

15、Localization = GlocalizationBy 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 companies have successfully implemented glocalizationPepsis GlocalizationPepsi forms joint venture when first ente

16、ring 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 collaboration rules. In keeping with local tastes, Pepsi launched its Lehar 7UP in the clear lemon category.Pepsis

17、GlocalizationAdvertising 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 glocalization strategy has been sponsoring world famous Indian athletes, such as cricket and soccer players.Coca-Colas Glocal

18、izationFirst 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 1993For the festival of Navrartri, Coca-Cola issued free passes to the celebration in each of its “Thums Up bottlesAlso ran special p

19、romotions where people could win free vacations to Goa, a resort state in western IndiaCoca-Colas GlocalizationCoca-Cola also hired several famous “Bollywood actors to endorse their products.Who could forgetVivek OberoiAishwarya RaiCoca-Cola Indias MistakesEnters Market at the Wrong TimeBy entering

20、at this time, Coca-Cola India agreed to abide by all the Foreign Investment Laws of that year.Coca-Cola India tries to expand investmentGovernment allowed acquisition only if Coca-Cola agreed to sell 49% of equity within 2 yearsCoca-Cola tried to get extensionstwiceIndia granted the first extension,

21、 denied the secondCoca-Cola India tried to deny the upcoming Indian shareholders voting rightsForeign Investment Promotion Board (FIPB) Denies ThisCoca-Cola Indias Mistakes1st MistakeCoca-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 reputa