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Cola wars in india

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  • 1. The Cola Wars in India: The Competitive Strategy Presented by: Rahul Rathi

2. Indian Cola Market - Introduction Pepsi 1st entered India in 1956, was unsuccessfulin developing Indian market, left in 1961. Coca Cola entered India thereafter, was doing wellbut had to leave due to political opposition in 1977. Absence of both the big players - Parle Industriescaptured market share more than 60 per cent. 1986, return of Pepsi through a tie up, launchedproduct in 1991. Coke followed, re-entered in 1993, purchasedParles soft drinks brands. Made judgmental error ofcannibalizing popular Parles brands. 3. International corporate-level strategies by Colacompanies Pepsi followed multi- HIGH domestic strategy Trans- Decentralized system, hadGlobalnational homegrown Indianstrategystrategy managers, adapted toNeed for Global Indian needs and practicesIntegrationMulti- Coca Cola followed domesti Global strategy -c LOW Centralized organizational strategy system, driven by its HO.LOHIGHW Need for Local Responsiveness 4. Advertising wars between the Colagiants 5. Other differences in strategies adopted by Colagiants PepsiCoca Cola Bottler ModelOpted for companyOpted for franchiseowned bottlers bottler model(COBO)model Promotions Customization of Focused more onpromotion, standardizationadvertisements forIndian market Marketing Research Invested lessInvested more and development Fountains Set up Set up more Set up lessfountains than Coca fountains, worriedColaabout quality ofwater 6. PepsiCoca ColaLogisticsOperated smallerOperated largerManagement trucks which trucks which covered a shortercovering longer routeroutes Used half depth Used full depth crates, leading to crates leading toHuman Resource more Had more less lessHad breakagesManagement breakages salespersons, paid salespersons, paid better to executives less to executivesPublic Relations Managed better PRImage was mired by partnering with due to differentcontroversies organizations on related to usage different fronts.practices of water. 7. THANK YOU