View
208
Download
1
Embed Size (px)
DESCRIPTION
Citation preview
Loading
andlearn to
Compete inGroup
3
Case Summary
Lessons
The Indian soft drinks industry
1993: over 45% soft drink
Market leaders: Parle Agro, Pure Drinks, Modern Food1998: carcinogenic chemical in soft drinks Warning large Producers WithdrawalNon-carbonated vs Carbonated6 product segments : Cola, Cloudy lemon, Orange, Soda, Mango and Clear lemon.
India: Unfriendly to Foreign Investors
Principle of Indigenous AvailabilityNew Industrial Policy: eliminate Barriers
Coca Cola Pepsi
Sell 49% equity as a condition of entering and buying Parle‘ (an Indian company)
The enter of Coca Cola & Pepsi
received alien status upon entry
1993
Became “Coca Cola India”
1986Sales could not exceed 25%Pepsi Foods Ltd: process and distribute local fruits and vegetablesBecame “Lehar Pepsi”
Fast Forward to the New Millennium
Seasonal Sales Promotions-2006 Navratri CampaignTV CampaignPepsi Sponsorship of Cricket and FootballCoca-Cola‘s Lifestyle AdvertisingThe Affordability Plank
A New Product Category
+Timely responded to the decline in carbonated drinks consumption and increase in non-carbonated ones.
+Diversify to gain more market share
-Not core products consume more time and money in RnD, not have enough experience to compete with market leaders (Parle)
-“Self-cannibalize”
Comments on the decision
PepsiCo’s Aquafina Products
- At first: only 750ml bottle
- Later: added 500ml and 1l bottle the young, on-
the-go customers,
Price-
750ml=10Rs (while leader Bisleri:1l=10
Rs) “affordable
price” +guaranteed quality + an international tamper-proof
seal
Place- Popular
places: retail stores, metros,
supermarkets targeted customers
Promotion- “purity,
safety and health”
positioning- Through print, TV,
outdoor ads- Strong
promotion at schools/colleg
es
Coca-Cola’s KinleyProducts
- Various pack sizes: 500ml
to 25l- 200ml cups
Target restaurants, weddings, parties and
similar social occasions
Price- The same as
leader’s in 2003
- In 2009, Coke kept same price for 500ml
bottles,when PepsiCo and Bisleri hiked
price.
Place- First in southern
metros, then nationwide
Promotion- “Trust in
every drop”><unreli
ability of ordinary tap
drinking water- Connecting
with customers by
urging them to rediscover
trust in each other.
Who won???
Bisleri36%
Kinley25%
Aquafina15%
Others24%
Market share of bottled water brands
An environmental organization accused their products of containing carcinogenic pesticideIn US, an activist group in California launched a campaign against Coca-Cola IndiaStudents of a major mid-Western universities called for a ban on the sale of Coca-Cola products
Heavily Affected by Pressure Groups
Gain back positive image and consumers’ trust
How can they confront the issues of water use?
- Help people realize that whether they manufacture or not, water is still a problem
- Work with the communities to reduce the water use (as promised)
-Be clear to the public about the results
-Provide scientific evidence that their products are safe
How can defuse boycotts or demonstrations against the product
Careful Research
Adaption to the new market Be prepared for unexpected event + Appropriate behavior
Never underestimate the political potency of a scandal
Satisfy safety or environmental regulations
Choose the right time to enter Build good relationship with the government
Focus more on marketing and
advertising strategies Keep up with the emerging trends in the market
PepsiCo and Cola – which could have more prospects to succeed in
this market?
LoadingT
han
kYou