Question: Please help me with questions 1-9 at the bottom. CASE 1-3 Coke and Pepsi Learn to Compete in India THE BEVERAGE BATTLEFIELD they had to
Please help me with questions 1-9 at the bottom.





CASE 1-3 Coke and Pepsi Learn to Compete in India THE BEVERAGE BATTLEFIELD they had to in their own R2D in order to find a substitute ingredient. Mary tailed and quickly withdrew from the industry In 2001, the President and CEO Coca-Cola xerted that Coke Competing with the segment of carbonated soft drinks is has had a rather rough run in India, but now it seems to be getting another bevege segment composed of carbonated fruit its positioning right. Similarly, PepsiCo's Asia chief exerted that drinks. These are a growth industry because Indian consumers India is the beverage buitleriid for this decade and try and perceive fruit drinks to be matural, healthy, and testy. The lead Even though the government had opened its doors wide to ing brand has traditionally been Parles Prooli, a mangoed foreign companies, the experience of the world's two giant soll drink, which was also exported to franchises in the United States, drinks companies in India during the 1990s and the beginning Britain, Portugal, Spain, and Mauritius of the new millennium was not a happy one. Both companies experienced ange of unexpected problems and difficult situs OPENING INDIAN MARKET Lions that led them to Ecognize that competing in India requires special knowledge, skills, and local expertie. In my way In 1991, India experienced an economic crisis of exceptional Coke and Pepsi managers had to learn the hard way that what severity, triggered by the rise in imported oil prices following the works here does not always "work there. The environment in first Gull W (aller Inq's invasion of Kuwai) Foreign exchange India is challenging, but we're learning how to crack as a Enesfellsnesident Indians (NR) cut back on separation industry leader of their sarings, imports were lightly controlled across all sectors, and industrial production ell while ination was rising. A new THE INDIAN SOFT DRINKS INDUSTRY Remment look office in June 1991 and introduced measures lo stabilize the economy in the short term, then launched a fun- In India, over 45 percent of the soft drinks industry in 1993.co damental estructuring program to ensure medium-term growth sisted of small manufacturers. Their combined business was worth Results were dramatic. By 1994, infation was hatred, exchange $3.2 million dollars. Leading producers included Parle App enes were greatly increased exports were growing, and foreign reafter Parle). Pue Drinks, Modern Foods, and McDowells. investors were looking at India, a leading Big Emerging Market, They offered carbonated orange and lemos-lime berenage drinks with new eyes Coca Cola Corporation (hereafter "Coca-Cola) was only a distant The tumaround could not be overstated as one commenta- memory to most Indians at that time. The company had been pes for said. "India has been in sconomic depression for so long that ent in the Indian market from 1958 until its withdrawal in 1977 everything except the sale chummer, ws and the Taj Mahal lowing a dispute with the government over its trade secrets. After has faded from the memory of the world. The Indian gover- decades in the market, Coca-Cola chose to leme India rather than ment was viewed as friendly to foreign imestors. Outside cut its equity stake to 40 percent and hand over is secret fonnulla investment had been allowed only in high-tech sectors and was for the syrup almost entirely prohibited in consumer goods socioes. The "pein- Following Coca Cour's departure, Parte became the market ciple of indigenous availability" had specified that if an item water and established thriving export franchee business in could be obtained anywhere ele within the country, imports of Dubai, Kuwait, Saudi Arabia, and Oman in the Gulf, along with Similar items were forbidden. As a result, Indian consumers had SriLanka. It set up production in Nepal and Hangladesh and served little choice of products or brands and mounts of quality distant markets in Tanzania, Britain, the Netherlands, and the United States. Peale ested hearily in image arising at home, Following liberalization of the Indian economy and le dis- establishing the dominance of its rapship brand, Thums Lp. mantling of complicated trade rules and Egulations, foreign Thurns up is a brand associated with a job well done and isestment inceaed dramatically. Processed foods, software, personal success. These persuasive messages for its target mar engineering plastics, electronic equipment, power generation, and kel of young people aged 15 to 24 year. Parle has been creatin petroleum industries all benefited from the policy changes the past not to call Thums Upacol drink soit les solded direct comparison with Cole and repail, the world's brand leaders. PEPSICO AND COCA-COLA ENTER The soft drinks market in India is composed of six product THE INDIAN MARKET segments: cola "Cloudy lemon orange, soda" (cartonated water), mango, and the lemon "inceder of importance. Clowly Despite its huge population, India tud not been considered by for lemon and clear lemon together make up the lemon-lime segmeni. eiga beverage producers to be an important market. In addition Prior to the arrival of foreign producers in India, the fight for to the delenens imposed by the government through is de local dominance was between Parles Thums Lp and Pure Drinks trade policies, rules, and multis, cal demand for carbonated Campa Cola drinks in India was very low compared with countries at a simi- In 1988, the industry had experienced a dramatic shake out lol lar stage of economic development. In 1989, the nerage Indian lowing a goverment warning that HVO, an essential ingredient in was buying only three bottles a year, compared with per capita locally produced soft drinks, was carcinogenic. Produce either consumption rates of 11 bottles a year in Bangladesh and 13 in had to resort to using a costly imported substitute, estergum, or Pakistan, India's two neighbors. 219_05-09 21/10 20 Part 6 Supplementary Material PepsiCo PepsiCo entered the Indian market in 196 under the traditional Gujarati Eestival goes on for nine nights in the state of name "Pepsi Foods Lod. in a joint venture with two local parties. Gujrat, in the westem part of India. Mumbai also has a significant Voltes and Punjab Agro." As expected, very stringent conditions Gujarati population that is considered part of the target market for were imposed on the venture Sales of soft drink concentrate to this campaign local bottlers could not exceed 25 percent of total sales for the new As the Regional Marketing Manager for Coca-Cola India venitur, and Pepsi Foods Lad was required to process and as stated. As part of the think local and local business plan tritule local fruits and vegetables. The government also mandated we have tried to involve the masses in Gujarat with Thums Lp that Pepsi Food's products be promoted under the name "Tehar Toni Ranjhat with 20,000 feepuses issued, one per Thums Pepsi" ("ehar" meuning ware"). Foreign collaboration rules in Lip bottle. Toolin' means a thunderstoom and "Tamjhal' means force at the time prohibited the use of foreign brand name on let's dance," so together these words come the idea of a fast products intended for sale inside India Although the requirements dan." Thee a number of retail] Co-site activities to, such for Pepesi's entry were considered stringent, the CEO of Pepsi-Cola as the 'buy one get one fee sheme and lucky draws where one International said at that time, "We're willing to go sobie with can win a free trip to Go (Go is an independent Portuguese India because we want to make sure we get an early mury while speaking state on the west coast of India, tamod for its beaches and the market is developing lourdesorts.) In keeping with local tastes, Pepsi Foods Bancted.char 7UP For ils part, PepsiCo alto participates in anul Natari cel in the clear lemon category, along with Lehar Pepsi Marketing ebrations through masse possips of para competitions and distribution were focused in the north and west around the in selected emas in Gujarat ("Gator is the name of ra dance, major cities of Delhi and Mumbai (formally Bombay. An ages done by women during the Naturfestival.) The Becutive Vice sive pricing policy on the one-liter bottles had a siete impact on President for PepsiCo India commented "For the first time, Pepsi the local producer, Pure Drinks. The market leader, Parte, pre- has led up with the Gujarai TV channel, Zee Alpha, bo telecast empled any further pricing moves by Pepsi Foods by introducing a "Narani Ulan' on all nine nights. ["Ular' means estival.] Then new 250 ml bottle that sold for the same price as its 200-ml bottle there is the mega offer for the people of Ahmedabad, Haroda Pepsi Foods struggled to light of local competition from Surat, and Rajkot where every tim of a case of Pepsi 300 ml. Pure Drinks Champa Cola, Duke's lemonade, and various brands bottles will ich one kilo of Basmati rice fire. These four cities of Pale. The fight for dominance intensified in 1993 with Pepsi a located in the state of Gujarat. Basmati rice is considered a Food's launch of two new brands, Slice and Teem, along with the premium quality rice. After the initial purchase of a 300 ml bottle introduction of fountain sales. At this time, market shares in the consumers can get refills at meduced rates at selectiones cola segment were percent for Parle down from 10 percent). 26 percent for Pepsi Foods, and 10 percent for Pure Drinks The TV Campaign Both Pepsi-Cola and Coca Cola engage in TV campagnemploying local and regionalestivals and Coca-Cola in May 190, Coca-Cola aiempied to res sports events. A summer campaign Baturing UP was launched by ter India by means of a proposed joint venture with a local bol Pepsi with the objecties of growing the category and building lling company owned by the giant Indian complemente, adre brandzwems. The date was chosen to coincide with the India The govement tuned down this application just a PepsiCo's Zimbabwe One Day cricket series. The new campaign slogan application was being speed. Undeterred, Coca Cola made it was "Keep It Cool temple the product attribute of fish return to India by joining forces with Britannia Industries India ment. The national campaign was to be einked with regionally Lod., a local producer of snack food. The new venture was called dupled TV campaigns, outdoor activities, and retail promotions "Brico Foods A 200-ml bottle was introduced during this campaign in ceder Among local producers, I was believed at that time that to incese fequency of purchase and volume of consumption Coca-Cola would not take market share away from local compa Prior to the introduction of the 200-ml bottle, most soft drinks nies because the leven market was itself growing consistently were sold in 250 ml, 300-ml, and 500 ml bottles. In addition to from year to year. Yet this belief did not stop individual local TUP, Pepsi Foods also introduced Mirinda Lemon, Apple, and producers from trying to align themselves with the market leader Oringe in 200 ml bottles. Thus in Joy 1993. Parle olerod to sell Coca-Cola is bouling In the past, celebrity actors Amitabh Bachchan and Govinda, plants in the four key cities of Delhi, Mumbai, Ahmedabad, and who are famous mat stars of the Indian movie industry, had Surat In addition, Paleoliteed to sell its leading brands Thums up. endorsed Mirinda Lemon. This world-famous industry is thered Limca. Citra Gold Spot, and Mam. It chose to retain ownership to Hollywood" (the Hollywood of India hased in Bombe). only of Frooli and a soda carbonated water) called Histeri. Pepsi's Sponsorship of Cricket and Football (Soccer) After India won a standing victory in the FAST FORWARD TO THE NEW India England Nawet One-Day cricket series finals, PepsiCo MILLENNIUM launched a new al campaign aturing the batting sensation, Mohammad Kal. PepsiCo's line-up of other cricket celebrities Seasonal Sales Promotions-2006 Navratri includes Saurav Ganguly, Rahul Dravid, Harihajan Singh. Zate Campaign In India the summer season for soft drink com Khan, V.V.S. Laxman, and Ajit Agrar. All of the planers were sumption lasts o 7 days from mid-April to June. During part of the Indian cam for the World Cup Cricket Series. During this time, over 50 percent of the year's carbonated been the two months of the Series, a new product, Pepsi Blue, was ma are consumed across the country. The second-highest season for keled nationwide. It was positioned as a limited edition," icy-blue Consumption is only 20 to 3 days during the cultural testival cola sold in 300-ml, returnable glass holes and 500-ml plastic of Navratri ("Nar" means nine and Tari" means might). This bottles, priced at rupees (Rs) and Rs 15, espectively. In addition, HD 1 0 10 21/10H 2.0 Cases 1 An Overview commemorative, notrstumabile 250-ml Pepsi botiles priced at Rs 12 were introduced One rupee was equal to US 2.54 cenis in 2008.) In addition to the sponsorship of cricket tenis, PepsiCo has also take advantage of World Cup soccer lever in India by leatus ing foothall hemes such as Haichung hatiin Pepsis celebrity and music related arertising communications. These adste tured football players pitled against sumo wrestles. To consolidate its investment in its promotional campaigns, PepsiCo sponsored a music video with celebrity endones includ. ing the Hollywood stars, as well as several nationally known crick cles. The new music video zied on SET Max, a satellite channel broadcast mainly in the northem and westem parts of India and popular among the 15-25 year age group Coca-Cola's Lifestyle Advertising while Pepsi's promotional efforts Bocused on cricket, car, and other the sc events, Coca-Cola's India strategy focused on relevant localidi oms in an effort to build a "connection with the youth market." The when youth target market, known as "India A" includes 18-24 year olds in mor metropolitana Several ad campaigns were used to appeal to this market ment One campaign was based on use orgaana" music and hallet. ("Gara" means to sing.) The first and execution, called "Bombay Deans,"featured A. R. Ralman, a tamous music director. This approach was very successful among the target audience of young people, increas ing sales by about 50 percent. It also won an Em Award from the Mumbai Adhertising Chuh. A second execution of Coke's south em strategy was "Chemai Dreams" (Chennai was formerly called Madras), a 80-second Lature film targeting consumers in Tamil Nadu, a region of southem India. The film featured Vijay, a youth icon who is amous as an actor in that region of South India. Another of the 60-second films talued actor Vhek Oberoi with Aishwarya Rai. Both are famous as Bollywood movie stars. Aishwarya won the Miss World crown in 1994 and became an instant hit in Indian movies aller deciding on an acting career. This ad showedober trying to hook up with Rai by deliberately leaving his mobile phone in the buxi that she hails, and then calling her. The ad menaxe aimed to emplene confidence and optimism as well as a theme of the day. This campaign ved print, outdoor, point-of-sale, restaurant and grocery chaines, and local pro motional events to lie into the 60-second film. "While awareness of soft drinks is high, there is a need to build a deeper brand connect in urban centers, according to the Director of Marketing for Coca Cola India "Viek Obers who's an up and coming today and has a wholesome, energetic image will help build a stronger bond with the youth, and make them that it is a brand that plays in their lite, just as much as Levi's ar Ray Han." In addition to promotions focused on urhan youth, Coca-Cola India worked to build a brand preference among young people in rural target markets. The campaign slogan aimed at this market was "thanda matlab Coca-Cola" or "tool means Coca-Cola" in Hindin. Coca-Cola India calls ils rural youth target marked "India B." The prime objective in this market is to grow the generic soft drinks category and to develop brand presence for Coke. The "handara (old) campaign successfully propelled Coke into the number the position in rural markets. Continuing to court the youth market, Cole has opened its list retail outlet, Red Lounge.The Red Lounge is touted as a cae-shop destination where the youth can spend time and consume Cole products. The list Red Lounge pilot outlets in Pune, and based on the educk, moe Outlets will be rolled out in other cities. The lounge sportsted color, keeping with the theme of the Coke logo. It hasan LCD television, video games and Intem surfing facili- ties. The lounge olies the entire range of Coke products. The com- pany is also using Internet bekend is each into the public domain through the website www.happiness.cocco.com. The company has created a special online Sprite-itude one that provides con- sumers opportunities for online gaming and expressing their cre ativity, keeping with the one atitude of the drink Coca-Cola's specific marketing objectes are to grow the per capita consumption of soft drinks in the rural markets, capture a larger share in the uten market from competition, and increase the frequency of consumption. An affordability plank, along with introduction of a new 5 rupee bolile, was designed to help achieve all of the goals The "Affordability Plank" The purpose of the "allord ability plank was to enhance affordability of Coca-Cola's prod uts, bringing them within xm's each of consumers, and thereby promoting regular consumption. Ghen the way low per capita consumption of soft drinks in India, it was expected that price eductions would expand both the consumer base and the market for soft drinks Coca Colandia dramatically reduced prices of its soft drinks by 15 percent to 25 percent nationwide to encourage consumption. This move followed an earlier regional action in North India that reduced prices by 10-15 percent for its carbon ated brands Cake, Thums Lp, Limca, Sprite, and Fanta. In other Egions such as Rajasthm, western and eastem Uttar Pradesh, and Tamil Nadu, prices were slashed to Rs 5 for 200-ml glass bottles and Rs 8 for 300-ml bottles down from the existing Rs 7 and Rs 10 price points, respectively, Another initiative by Coca-Cola was the introduction of a new be, the "Mini,"expected to increase local volume of sales and account the major chunk of Coca-Cola's carenador drinks. The price redaction and new production launched together in a new television ad campaign for Rania and Coke in Tamil. A 30-second Fanta pot featured the brand ambassador, atres Simran, well-known for her dance sequences in Hindi movies. The ad showed Simran stuck in a traffic jam. Thirsty, she losses a 5-rupee coin to a roadside stall and signals to the vendor that she wants a Fanta Mini by pointing to her cung des Fanta is an orang ate drink.) She gets herFanta and sets of a chainea- tion on the crowded street, witheveryone from school children ba traditional "animimicking her action. ("Nani" is the Hindi word for grandmother.) The director of marketing commented that the company wanted to make consumers "it up and take notice." A NEW PRODUCT CATEGORY Athough castonated drinks a the mainstry of both Cole's and Pepsisproduct line, the Indian market or ctmated drinksis own growing. Ilgewat compounded ammual growth rate of only 1 percent teveen 1979 and 2006, from $131 billion to $1.32 billion. However, the overall market bir berages, which includes soft drinks.juices, and other drinks, grow percent from $3.5 billion to $3.34 billion. To encourage growth in demand for bottled beverages in the Indian market, everal products, including Cole and Pepsi, hane launched their own brand in a new category, boliled water. This marketwas valed at 1,000 Crores! CECODO Rape and USSI-24. 1. CELSDEXO 10-11 20H 2 Part 6 Supplementary Material Pepsi and Coke weesponding to the declining popularity of The companies femel committees in India and the United soft drinks or carbonated drinks and the increased focus on all Suits working in tandem on tegal and public relations sues. They henges that are now-carbonated. The ultimate goal is leader worked around the clock fashioning rebuttak They commissioned ship in the packaged watermarket, which is growing more rapidly their own laboratories to conduct tests and wailed until the esults than any other category or bottled beverages. Pepsi is a signi came through before commenting in detail. Their approaches back cant player in the packaged water market with its Aquafina brand. fied. Their eluctance to gre details famed consumer suspicion. which has a significant share of the bottled water market and is They became bogged down in the technicalities of the changes among the top the retail water brands in the country. instead of focusing on winning back the support of their customers. PepsiCo consistently has been working toward reducing is At the start, both companies were prepared when one state dependence on Pepsi Cola by bolstering its non-cola portllio after another announced partial hans on Coke and Pepsi products, and other categories. This effort is aimed at making the company the drinks were prevented from being sold in government offices, more beadhased in category growth so that no single productor hospitals, and schools, Politicians exploited the populist potential Category becomes the key determinant of the company's market In hindsight, the Coke communications director and she could growth. The non-cola sement is said to have gown to contribute we how the emmentalroup had paded Coca-Cola w one-fourth of PepsiCo's overall business in India during the past of altracting attention to the broader problem of pesticide contami three to four years. Previously, the multinational derived a major mation in Indian food products. "Fringe politicians will continue to chunk of its growth from Pepsi-Cola te publicly hostile to big Western companies, regardless of how Among other categories on which the company is focusing a eager they are for their imestment," she said fruit juices,juice-based drinks, and water. The estimated fruit juice Failing to anticipate the political potency of the incident.Coke and market in India is approximately 350 Cres and growing month Pepsi initially hoped that the crisis would blow over and they adopted to month. One of the key factors that has triggered this tend is the a policy of Silence. Flere people needence as it was an emergence of the mass luxury segment and increasing consumer Indian public relations expert "You have to roll up your sleeves and Consciousness about health and wellnes. "Our hugely successful get into a street fight. Coke and Pepsi didn't understand that international brand Garte has gained momentum in the Coca-Cola centually decided to go on the attack, though indi try with consumers embracing a lifestyle that includes sports and Ety giving detailed briefings by crecutives, who questioned the exercise. The emergence of high-quality gymnasiums, fitness and scientific credentials of their products' acers. They directed aerobic centes mirror the fitness trend, a spokesperson, Eporters to Internet blogs full of entries that were unicely pro- Coca-Cola introduced its Kinky brand of bottled water and in Coke, and they handed out the cell phone number for the diec- two years achieved a 2 perent market share. It initially produced for of an organization called the Center for Sanity and Halance in boiled water in 15 plants and later expanded to another is plants Public Lib. Emphasizing that he was not being paid by the indus- The Kinley brand of bottled water elk in warious pack se 300ml try, Kishore Asthana, from that center, said, "One can drink aan 1 liter, 13 litr. 2 liter, 5 liter, 20 liter, and 25 liter. The smallest pack Cake every day for two years before taking in as much pesticide was priedaRs6 for 300 ml, while the 2 liter bottle was Rs 17. as you get from two cups of tea." The current market leader, with 40 percent market share, is the The situation continued to spin out of control Newspapers Bisleri brand by Partie. Other competing brands in this segment printed images of cans of the drinks with headlines like "laki include Bailey by Parlie Hebo by Hello Mineral Waters Pillid. cocktail. News channels becadas images of protesters pouring Pue Lie by Nes, and a new brand launched by Indian Railways Coke down the throats of donkeys. A vice president for Coca-Cola called Rail Neer. India said his heart sank" when the first lead the accusations because he knew that comes would be easily confused. "But CONTAMINATION ALLEGATIONS AND een terminology like P.P.H.-parts perionis difficult to WATER USAGE comprehend he said. "This makes our job vay challenging." PepsiCo bem a public relations of one placing lampe Justas things began to look up for the American companies, nami adherisements in daily newspapers saying. Tepsi is one of the rumental organization claimed that soft drinks produced in India sulest heverages you can drink today." by Coca-Cola and Pepsi contained significant levels of pesticide The company owledged that pesticides weepesent in the reside.Coke and Pepsi denied the changes and and that tense poundwater in India and found their way into food products in use of pesticides in agriculture had resulted in a minute degree of general. But, it said, "compared with the permitted es in tea and pesticide ined in their drinks. The esult of tests conducted other food products, pesticides in soft drinks are eligible. by the Ministry of Health and Pamily Welfare showed that soft drinks Aller all the bad press Coke gat in India over the pesticide produed by the two companies were to drink under local health content in its sont drinks, an activist group in California launched standard 2. campaign directed a US college campues, accusing Coca-Cola Protesters in India acted to reports that Coca-Cola and Pepsi of India of using precious groundwater, lacing its drinks with contained pesticide residues. Some states announced partial are pesticides, and supplying farmers with sic wave used for on Cole and Pepsi products. When those Epoets appeared on the fertilizing their crops. According to one report, a plant that pro- front pages of newspapers in India, Coke and Pepsi executive wee dars 300.000 liters of soda drink a day uses 1.5 million liters of confident that they could handle the situation. But they stumbled. water enough to meet the requirements of 20 poo people, They underestimated how quickly events would spiral into a The isso evolved around a bottling plant in Plachimada, nationwide scandal, misjudged the speed with which local polis India. Although the state government granted Coke permission to cins would see on an Indian environmental group's report to build its plant in 1998, the company was obliged to get the locally attack their lotul brands, and did not respond swiftly to quellte clected village council's go-alead to exploit groundwater and other kities of their customers. esources. The village council did not permission in 2002, 31_08-09.12 21/10 20 Cases 1 An Overview claiming the bottling operation had depleted the farmers' drinking 3. The Indian market is encemous in terms of population and water and imigation supplies. Cole's plant was closed until the geography. How hare the two companies responded to the corporation won a court ruling allowing them to open sheer scale of operations in India in terms of product poli- The opening of the plant in 2006 led students of a major ces, promotional activities, pricing policies, and detribution Midwestern university to call for a han on the sale of all Coca arrangements Colla products on campus. According to come source, more than 20 4. 'Global localization localization) is a policy that both Campus burned Coca Cola products, and hundreds of people in companies have implemented successfullyGhe examples the United States called on Coca Cola to come il bollling plants for each company from the case. because the plants drain water from communities throughout India. They contended that such inte sponsible practices rob te 5. How can Pepsi and Coke confront the issues of water se pour of their fundamental right to drinking water, are of in the manufacture of their products? How can they defue Inic waste, Carious harm to the environment, and threaten further boycotts or demonstrations against their products? people's health How efecte are activist groups like the one that launched In an attempt to stem the controwy, Coca Cola entered talks the campaign in California? Should Cole address the group with the Midwestem university and red in cooperate with an directly or just the futur subside? independent research assessment of its work in India; the mi 6. Which of the two companies do you think has better long- versity selected the institute to conduct the reach, and Cole term prepects for succes in India? financed the study. As a result of the proposed research program, 7. What sons can each company draw from its Indian expe- the university agreed to continue to allow Coke products to be sold rience as it contemplates entry into other Big Emerging on campus Markets? In 2008 the study eported that some of the pesticides were found to be pezent in procesed water used for beverage proda 3. Comment on the decision of both Pepsi and Coke to enter the tion and that the plans melgremmental equatory andards boiled water market instead of continuing to focus on their However, the report voiced concems about the company's of ce products carbonated beverages and colsheed drinks in particule Spurse water supplies. Coca-Cola was asked by the Delhi-based environmental research group to consider shutting down one of 9. Most recently Coca-Cola has decided to enter the growing its bouling plants in India. coke's Esponse was that the easies Indian market for en drinks, forecasted to grow to $770 thing would be to shut down, but the solution is not to run var billion in 2013 from less than half that in 2003. The competi- we shut down the area is still going to have a water problem. We tion in this market is fierce withestablished firms including want to work with farming communities and industries to reduce Red Bull and sobe. With its new brand Hum, Coke initially the amount of water used targeted alterative distribution channels such as pubs, bars. The controversies highlight the challenges that multinational and gyms rather than large ebail outlets such as supermar- companies can face in their overseas operations. Despite the huge ket. Comment on this strategy popularity of the drinks, the two companies wollen held up as symbols of Western cultural imperialism. Thieved by Lye S.Amin, Photo Mengandi THE BATTLEGROUND SHIFTS Baralan ng low of the Rakemy Meeting Scenes IN THE NEW DECADE den Waliotayo'lsa, SL venity, and VkA, Sieg Meganie Coca-Cola now leads the industry in sales. It was the #1 and 12 sily, Miley.DeLyn Ad Viene pepend the republic ha for conciency. bare endlicher brand, Thums Up and Coke, espelhely. The firm also turned a che richading dress TEGEVE profit in India in 2010 for the rest time since is reentry in 1993. and with Rather than killing the Thums Up brand, Coca-Cola executives Source: Lyn 5. Amit Deepse, Mariestry in the Newyd Wiely hare maintained tlul name, with its nationalindic popularity de Meltempereers Companies in the Sat Drink The nealcoholic beverage industry has also experience a gruwih Designated Sula IV, pranding of the main de Amy Meeting Scie, Roger Canllables, FL-AMES, surge in the past decade, at some percent per year. And now 1998). pp. 27-50:et oled Clean Coke and repait the competitie huttle is shifting from urban areas to the vad rural World Spice 29.03; "Tadi Csep Coke. Itpad Totents regions of India Alt Cam. A, Dember 14, 204: "Totulerara May 2013 maalleman Crows in many Choc Cake Bing QUESTIONS Pest Reminder befes Co-Cola Lana pilal Circend Wa" AT, 14, TOS "Why Eye Locab Het Coke, The 16, 20; Teplined To Roca a 1. The political sirutment in India has proven to be critical Cols Segenteille Tiller, SekrZz, za to company performance for both PepsiCo and Coca-Cola Clasis of Drinks, Arah in Crack Meet The New Tagall, India What specific pects of the political caricament hare and Try it isda ThaiDrinks Thu played key roles? Could these elects have been anticipated The August 2008 at The Florin Water prior to marketentry? If not, could developments in the 11, 2; Meting Cara Panying Is Retail Lang Pol line, April, DT: Op wins Coin Say Cakes." The The political analwe been handled beter by cach company? In October 1207, Tepal:Repairing Pad Repada nadie. Howe 2 Timing of entry into the Indian market brought diren Sada Cladought Charleddin Cory Panamed results for Pepeo and Coca-Cola India Whathenes Water" Waste 11, 207, 48; Co-Cola Aled to Sant or disadvantages and as a result of earlier or later Sine Watan NewsJay 15,Col A Second Skater Drink Master, my dailWimningi marketentry del Wahlstedt. May 4, 2000. 10-06.13 21/10 20
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