Coca-Cola left India in 1977 when the government insisted they partner with a local business, but returned in 1993 when India opened to foreign investment. Coca-Cola's re-entry strategy involved acquiring the Parle Group's brands like Thums Up to gain market share. They launched with colorful processions in cities and invested in communities through programs to help women entrepreneurs. This commitment to India helped Coca-Cola acquire two-thirds of the soft drink market share.

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Coca-Cola Returns to India
Angela Erickson
MKG 410: International and Multi-Cultural Marketing
Colorado State University – Global Campus
Professor Michael Aubry
June 27, 2015

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Coca-Cola Returns to India
Coca-Cola has been a global brand for decades. Its place in the marketplace has been
absolutely secure. So, when in 1977 a newly elected Indian government insisted that Coca-Cola
pair with a local business, if they wanted to continue doing business in India, Coca-Cola politely
refused and turned its back on a country of more than 800 million consumers. This was an
unpredicted and shocking move for Coca-Cola. Then, in the early 1990s, India began to open its
doors to foreign investment again. Coca-Cola saw an opportunity and re-entered the country as
their original brand and with the newly acquired Parle Group, which owned 60% of India’s soft
drink market (Moye, 2013).
Preliminary Analysis and Screening
The challenge for Coca-Cola re-entering the market was two-fold. They not only had to
acquire permission to restart their business in India, they had to find a way to jump into the game
ahead of their competitors, namely Pepsi and the Parle brands. Part of their re-entry strategy
involved sending a Coca-Cola executive to India in the summer of 1992 to develop that strategy.
Coca-Cola had already been a successful brand in India and consumers were eager to see it
return. However, with a 16 year absence, Coca-Cola had missed out on a generation of
consumers. Some of the youth may have had a taste of Coca-Cola in another country or some
that was smuggled in, but there was very little to build on, except for what Coca-Cola deemed
“virtual consumption (Moye, 2013).”
Defining Market Segments and Adapting the Marketing Mix
Among the marketing segments were the older generation who had already had Coca-
Cola in the past, younger generations who had very little experience with Coca-Cola and a sub-

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set of consumers that were loyal to the Parle brand, Thums Up. The consumers of Thums Up
were loyal consumers, clinging to this Indian cola brand, partially out of nationalistic loyalty.
Executives decided not to fight against the Thums Up brand, but to acquire it and market
alongside it. Other brands that were acquired with Parle included: Limca, Citra, Cold Spot and
Maaza. Along with acquiring these brands, Coca-Cola also got their distribution system and
franchise business. Branding and packaging stayed, for the most part, the same. However,
Coca-Cola decided to bring Coke back in 300 ML Georgia Green Glass bottles. The selling
price was 5 Rupees. Their competitors were selling 250 ML bottles for 5.5 Rupees. Though the
quantity was slightly overwhelming for the consumer, the larger size presented a greater value to
the consumer (Moye, 2013).
Developing the Marketing Plan
It was decided early on that the best re-introduction to India, for Coca-Cola, would be a
Juloos. This traditional Indian procession was held on October 24, 1993 in Agra, home of the
Taj Mahal. A colorful parade of delivery trucks and uniformed delivery men paraded down the
streets, offering samples to all of the spectators. Coca-Cola did experience a challenge in its
marketing strategy, however. Since they were determined to upgrade all of the bottling facilities
they acquired, they were not prepared to launch the Coca-Cola brand across the whole country.
Instead they went city by city, covering 17 cities in 17 months. Each time they entered a city,
they came with a processional Juloos. There was a good deal of outdoor advertising on
Billboards and also television commercials. Also, Coca-Cola provided branded coolers to
retailers of their product. For those retailers that were without power, Coca-Cola sent them solar
powered coolers. These coolers did double duty as a docking station and a place to recharge
lanterns.

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Implementation and Control
Said T. Krishnakumar, CEO of Hindustan Coca-Cola Beverages Pvt. Ltd, “We want to
demonstrate our intent to build a business which adds value to the communities we serve. We
also want to reiterate that we cause no adverse impact on the environment—we do not eat into
the natural resources, water or energy. And that we help grow the local community. It’s that
simple.” This sentiment was absolutely essential in a country that had become very nationalistic
and unwelcoming to large international businesses. One of the ways to secure a favorable
impression was to invest in community building projects. One of these projects was the 5 by 20
program, which had the goal of training 5 million women to be entrepreneurs by 2020. India
was a pilot country for that program. That program was recognized with the 2013 Catalyst
Award and Coca-Cola has also been recognized with a perfect score on the Human Rights
Campaign Corporate Equality Index for the 8th consecutive year (Coca-Cola, 2014). They also
made an effort to upgrade bottling facilities with better process machinery and with better control
standards. This attention to improvement and contribution has helped Coca-Cola acquire two-
thirds of the soda market share in India.
Conclusion
From being absent for 16 years to taking over 2/3rds of the market share in soft drink
beverages, Coca-Cola has launched a widely successful re-entry strategy into India. Their
research into the local market and their commitment to excellence have helped push the success
of their strategy. As they nurture local brands and continue to sell their classic brand, it is likely
that they will continue to see success in the future.

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References
Coca-Cola, 2014. 2013/2014 Sustainability Report. Retrieved from:
http://www.coca-cola.com/
Krishnakumar, T., 2014. Why Coke’s Business Growth and Sustainability Strategies in India are
Linked. Retrieved from:
http://www.coca-colacompany.com/stories/5by20/bringing-transformation...
Moye, Jay, 2013. 20 Years Later: A Look Back at Coke’s Dramatic 1993 Return to India.
Retrieved from:
http://www.coca-colacompany.com/stories/20-years-later-a-look-back-at-cokes-dramatic...