Coke & Pepsi learn to compete in India Essay

Timing of entry into the Indian food market place brought different results for PepsiCo and Coca-Cola India. What benefits or disadvantages accrued as a result of earlier or later market entry?Coca-Cola (1990)Benefitsadvantages as Early-Follower, possibility to rehearse reliable market study thatsalready existingtake-over of standards eyeshot as international market leaderDisadvantagesexpert knowledge of competitors has to be overtakengain trust of red-hot customers as another foreign clubPepsiCo (1986)Benefitsearly entry firearm the market is developingachievement of a good market positionenforcement of product standardsearly impact on topical anaesthetic producers (26% market piece of ground for Pepsi Food)Disadvantageshigh costs for tapping a in the raw marketlocal choose for carbonated drinks very low at that timeThe Indian market is enormous in terms of population and geography. How have the two companies responded to the untainted scale of operations in India in terms of product policies, promotional activities, pricing policies and distribution arrangements?Coca-ColaProduct policiesfocus on all beverages that ar non-carbonatedKinley Brand of bottled waterintroduction of new brands, introduction of new size of itMini Promotional activitiesbuild a connection with the young marketBusiness plan Think local act local thriving draws where you can win a free trip to Goa, TV campaigns, employing local and regional festivals and sport events, building a connection with the youth use of music and ballet, short films, work with actors and actressesCampaign slogan Cool agent coca colaRetail outlet Red Lounge where the youth can spent time and consumeCoke products. determine policies secondary prices and later on even reducing of prices (Skimming pricing)Price bundles (Buy ane get one free) scattering arrangementsRed Lounge think on Southern IndiaPepsiProduct policiesbolstering non-cola portfolio and other categoriesfruit juicesjuice-based drinks and water,introduction of new productsPromotional activitiesSponsorship of garba, TV campaigns, employing local and regional festivals and sport events, sponsorship of Cricket and football as well as a music video with Bollywood stars.Pricing policiesaggressive pricing policy (impact on local producer Parle)Distribution arrangementsfocus on northern and western parts of IndiaWhich of the two companies has better(p) long-term prospects for achievement in India? Why? PepsiCo has better long-term prospects for success in Indiaearlier market entry than Coca Colanon-cola portfolio makes quarter of the overall business in India (e.g. significant player in the encase water market) following the consumers lifestyle of sports and exercise through fitting advertisement not as bad as Coca-Cola involved in the pesticide tutelage What lessons can each company draw from its Indian experience as itcontemplates entry into other big emerging markets? Its not realistic to transfer the complet e marketing strategy from Europe or US to the Asian market.You have to know about the cultural and governmental specifics of the market where you want to be successful.Communication policy In India people come across a policy of silence as guilt so the company has to get into a streetfight if something wrong is published.Its definitive to know much about the local marketWhich products are change to which price? Who are themarket leaders? How aggressive is the competition?