1. COKE AND PESSI
LEARN TO COMPETE
IN INDIA
International Marketing Cources
MS:

2. TEAM MEMBERS
1.
2.
3.
4.
5.
Võ Vương Huy
Nguyễn Việt Hạnh Duyên
Phạm Thành Nam
Đinh Nguyễn Quỳnh Trang
Nguyễn Đức Hoài Duy

3. OUTLINE
1. Introduction
• Political Environment & India’s Market
2. Promotion Mix
• Product
• Promotion
• Place
• Price
3.Glocalization Strategy .
4.Lessons

4. INTRODUCTION
INDIA’S MARKET

5. Political Environment
• In 1991, an economic crisis: oil prices rise → inflation → A
new government.
• “The principle of indigenous availability” => India seen as
unfriendly to foreign investorfor many years.
• The Liberalization of India’s government in 1991 + the
dismantling of strict trade rules and regulations → foreign
inTvestment increased
Introduced the new plan to help economy
• In 1988, BVO

6. INDIA MARKET
• Coke entered the Indian market from 1958 to 1977; give up 40 %
equity stake + hand over its secret syrup formula or leave India →
leave
• Six favorite drinks: cola, cloudy lemon, orange, soda, mango and clear
lemon
• Indian consumers prefer to fruit drinks (natural, healthy, tasty) →
carbonated soft drinks > < noncarbonated fruit drinks → Parle’s Frooti
• Average Indian buys 3 bottles of soda a year
• PepsiCo entered the Indian market in 1986 as Pepsi Foods Ltd. In a
joint venture with two local partner
•
Coca-Cola tried to reenter India by merging with a local company
Godrej → rejected → made its return by merging with Britannia
Industries India Ltd.
•
In July 1993, Parle sold bottling plants + leading brands to CocaCola

7. 2
MARKETING MIX
Product -Promotion- Price-Place

8.  Pepsi
Product
• A big competitor of colacola
• Concentrate much on
Juices/juice drinks and
water
• Developing 7 food brands
and 10 Beverages brands
 CoCa-Cola
Coca-Cola is the company which
has introduced 6 types of soft
drinks in the
Indian market:
-Soft drinks
-Sports drinks
-Energy drinks
- Water
-Juices/juice drinks
-Energy drinks
-Tea and coffee
 Coca cola’s product is highly
diversified in the India market
with more than 70 brand names
in Indian market

9. • Pepsi and Coke command over 95% of
the soft-drink market in India.
• In 1995, Coke had 52 % of the Indian softdrink market share and Pepsi had around 42%
market share.

10. Compititors
Local producers like Rc Cola, Alfa, Campa Cola,
Red Bull

11. Price
 Coca-Cola
• Coca cola India
(CCI) thought about
the affordability of
the market when CCI
targeted the rural
market of India.
• CCI reduced price of
soft drink by 15% 25% nationwide in
order to encourage
consumption
 Pepsi
• Direct Price Discrimination
• Indirect Price
Discrimination
• Pepsi again decides it price on
the basis of competition.
• very flexible
• this risk taking attitude has
also earned

12. Promotion
• Attracted young generation.
• Choose the image of football player and
cricketers.
• Different size of bottles offered at lower prices
• Has become the largest seller of soft drinks in
India and is slowly forming a monopoly in
drinks market.

13. PROMOTION
•
•
•
•
Advertising:
Sale Promotion:
Personal Selling:
Public Relation:

14. Advertising
• Coke’s advertising and promotion strategy
pulled the marketing plan together using local
language and idiomatic expressions.
• Coke invited brand ambassadors to promote
their product. Customers who are familiar
with the celebrities can quickly identify them
with the product.

15. INDIA A
• The urban youth target market, includes 18–
24 year olds in major metropolitan
areas. Coca-Cola’s India strategy focused on
relevant local idioms in an effort to build a
“connection with the youth market.
“Bombay Dreams”
“Chennai Dreams”
60-second films featured actor Vivek Oberoi
with Aishwarya Rai

16. INDIA B
Coca-Cola India worked hard to build a brand
preference among young people in rural target
markets.
• “Thanda Matlab Coca-Cola” - The campaign
equates Coke with "thanda”, the Hindi word for
• "cold," a commonly used term for a generic soft
drink. This campaign successfully propelled
• Coke into the number three position in rural
markets.

17. Sale Promotion



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


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
Buy-one-get-one- free
Customer Relationship Management
New Media
Merchandising
Free gifts
Discounted prices
Joint promotion
Free example
Vouchers and coupons

18. Coca-cola: Doing sponsorship with some
university and college’s study and other
curriculum activities.
Pepsi: Supporting for Cricket and football

19. Public Relation
•
•
•
•
Advertising in many channels in india
Using celebrities to advertise the product
Many distribution channels
Subsidies for many charity and social events in
india
• Pepsi: game shows, football events, HIV
campaign
• Coke: Education
Built a strong image and good relationship with
customer.

20. Place
Coca-Cola products are available in:
1. Retail Stores including Convenient stores
(Super markets etc…)
2. Vending machine/Self Service Slot machines
(college, universities and other miscellaneous
business)
3. Ho-Re-Ca (means Hotels, Restaurants, Cafes
including Fast food outlets, cuisine
Restaurants etc.)

21. Place
• Locations where the product is consumed onsite can be split into small venues and large
venues
• ventured into ownership of fast food chains
with its purchase of Taco Bell, Pizza Hut and
KFC.

22. Coke & Pessi ‘s
Glocalization Strategies

23. Coke & Pessi ‘s Glocalization Strategies
Pessi
• Pessi entered the Indian market in a joiny
venture with 2 local partners , ( Vltas and
Punjab Argro ) under the name “ Pessi Food
Ltd “
• In keeping with local tastes , Pessi launched
Lehar 7UP in the clear lemon category
• Promoting the advertiment through the
festival of Navrartri .
• Pessi has been sponsoring famous Indian
athletes for the World Cup Cricket series ,
and socer Tourament .

24. CoCa-Cola
• Formed a joint venture with the
market leader Parle in 1993
• Try to involve the masses
through 20,000 free passes of
“Thums Up” bottles .
• Run special promotion to where
one can win a free trip to Goa ,
a tourist and resort state in
western .
• Coke also hired some famous
“Bollywood” actor to endorse
their product

25. PROBLEMS
• Coke & Pessi’s Products
Contained significant levels
of pesticide residue ….
?

26. Coke or Pessi in the long term
prospects for success ??
Pessi:
+Better marketing and advertising strategies
+More widely accepted
+More market share
Coke :
+Government conflicted
+Trailing pessi in market share
 Pessi will be better in the long term prospects for success

27. LESSONS
• How transfer learning from one market to
another, particularly Big Emerging Markets
• Relationship building at all levels especially the
government
• How to devise strategies to target the future for
global companies worldwide : the billions of the
people of the bottom-of-the-pyramid (BOP)
should be an opportunity and an important
lesson.
• Politically unstable countries → Having a good
exit strategy. Ex: Coca-Cola’s exit in 1977 from
India