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The competitive battle between Pepsi and Coca cola is shifting from urban areas => the vast rural regions of India.

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Rather than killing the Thums Up brand, Coca-Cola executives wisely have maintained that name => nationalistic popularity

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Coca-Cola now leads the industry in sales: It owns the #1 and #2 brands, Thums Up and Coke

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• The two companies have to face extreme competition
• The current market leader, with 40 percent market share, is the Bisleri brand by Parle.

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• Coca-Cola: Kinley Brand (28 percent market share)

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• The packaged water market is growing more rapidly than any other category of bottled beverages.
• Pepsi: Aquafina brand (Top 3 retail water in the country)

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• The Indian market for carbonated drinks is now not growing
• Trend of being health conscious and eating healthy will become popular.
• Pepsi and Coke must both respond to the demand for drinks that are non-carbonated

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The study reported that none of the pesticides were found to be present in processed water used for beverage production and that the plants met governmental regulatory standard.

However, the report voiced concerns about the company’s use of sparse water supplies.

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Coca-Cola entered talks with the Midwestern university and agreed to cooperate with an independent research assessment of its work in India; Coke financed the study.

As a result of the proposed research program, the university agreed to continue to allow Coke products to be sold on campus.

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The reopening of the plant led students of a major Midwestern university to call for a ban on the sale of all Coca-Cola products on campus.

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The village council did not renew permission. claiming the bottling operation had used the farmers’ drinking water and agriculture supplies.

Coke’s plant was closed until the corporation won a court ruling allowing them to reopen.

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The state government granted Coke permission to build its plant, the company was obliged to get the locally elected village council’s go-ahead to exploit groundwater and other resources.

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Coke and Pepsi initially hoped that the crisis would blow over and they adopted a policy of silence. The situation continued to spin out of control.

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"It's... Fineeee. Don't Worry!" - said Coca-Cola and Pepsi

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"It's... Fineeee. Don't Worry!" - said Coca-Cola and Pepsi

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They underestimated how quickly events would spiral into a nationwide scandal, misjudged the speed with which local politicians would seize on an Indian environmental group’s report to attack their global brands.

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Protesters in India reacted to reports that Coca-Cola and Pepsi contained pesticide residues. Some states announced partial bans on Coke and Pepsi products.

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[...] an environmental organization claimed that soft drinks produced in India by Coca-Cola and Pepsi contained significant levels of pesticide residue.

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Parle offered to sell Coca-Cola its bottling plants

Parle offered to sell its leading brands Thums Up

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Coca-Cola attempted to re-enter India

The government turned down this application.

Coca-Cola made its return to India by joining forces with Britannia Industries India Ltd, a local producer of snack foods.

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The fight for dominance intensified

Market shares in the cola segment were 60% for Parle, 26% for Pepsi Foods, and 10% for Pure Drinks.

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Foreign collaboration rules in force at the time prohibited the use of foreign brand names on products intended for sale inside India.

Marketing and distribution were focused in the north and west around the major cities

Pepsi Foods struggled to fight off local competition

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PepsiCo entered the Indian market

Sales of soft drink concentrate to local bottlers could not exceed 25% of total sales for the new venture, and Pepsi Foods Ltd.

The government also mandated that Pepsi Food’s products be promoted under the name “Lehar Pepsi”.

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Despite the world's largest population, India is not considered an important market by foreign carbonated water producers. Domestic demand is very low compared to other countries

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8. The Battleground Shifts In The New Decade

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8. The Battleground Shifts In The New Decade

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7. Contamination Allegations And Water Usage

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7. Contamination Allegations And Water Usage

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4. PepsiCo And Coca-Cola Enter The Indian Market

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4. PepsiCo And Coca-Cola Enter The Indian Market

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inflation had halved, exchange reserves rose sharply, exports grew, and foreign investors looked to India, the leading big rising market, with new eyes.

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Asian nations veteran a severe financial condition caused by the rise in foreign oil prices

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The industry faced an uproar due to carcinogens in beverages

Many companies went bankrupt and dropped out of the industry

The beverage is a thriving industry in India, Parle's Frooti product.

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After Coca-Cola's departure,  became a market leader and established franchise businesses and production

Develops the brand with the message of “job well done” and personal success towards the age group of 15-24.

After Coca-Cola's departure, cloudy lemon and precise lemons leaders in beverages.

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Carbonated orange and lemon-lime beverage drinks .

Many successes in the Indian market from 1958 to 1977.

In 1977, Exits the Indian market

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The beverage industry flourished in India  with a market value of $3.2 million.

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Coca Cola and Pepsi facing many difficulties in their operations.

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Good branding build policy

Competitive activities in Asian countries.

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PRICE STRATEGY decrease price of soft drinks 15-25 % 

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PRICE STRATEGY decrease price of soft drinks 15-25 % 

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North India decrease 10–15 % price of Coke, Thums Up, Limca, Sprite, and Fanta.
Other regions Rs 5 for 200-ml glass bottles Rs 8 for 300-ml bottles

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Enhance affordability of Coca Cola’s products

Promote regular consumption

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Increase per-capita consumption of soft drinks in rural market

Capture a larger share in urban market from competition

Increase  frequency of consumption

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opened first retail outlet Red Lounge:
- one-stop destination where the youth spend time + consume Coke products
- www.myenjoyzone.com

“Sprite-itude” zone for online gaming and expressing creativity the no-nonsense attitude of the drink
“thanda” (“cold”) campaign: Coke #3 position in rural markets.

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Bombay Dreams: increase 50% sales
Chennai Dreams: targeting consumers in southern India
- Emphasize confidence, optimism,  as well as a theme of “seize the day”
- Used print, out door, point-of-sale restaurant - grocery chains, local promotional events

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STRATEGY "Connection with the youth market"

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STRATEGY "Connection with the youth market"

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Different from Pepsi that concentrate in cricket, soccer, athletic events

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Bollywood stars and several nationally known cricketers. It aired on SET Max, popular among 15-25 year age group.

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Pepsi’s celebrities (Indian football heroes) and music-related advertising communications.

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A new product was launched and positioned as a “limited edition", icy-blue cola (price: Rs 8, Rs 12, Rs 15)

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After India won in the cricket series finals, PepsiCo launched a new ad campaign featuring a batting sensation. PepsiCo’s line-up are other cricket Indian team celebrities.

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Pepsi Change The Game Cricket World Cup Ad Campaign -  Dilshan Pallu Scoop TVC

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7UP summer campaign with the objectives of growing the category and building brand awareness.

The campaign slogan was “Keep It Cool” to emphasize the product attribute of refreshment.

Regionally adapted TV campaigns, outdoor activities, and retail promotions.

200-ml bottle was introduced to increase frequency of purchase and volume of consumption.

Introduce Mirinda Lemon, which had been endorsed by famous male stars of the Indian movie industry (Bollywood).

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Both Pepsi-Cola and Coca-Cola employ local and regional festivals and sports events.

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Sponsorships of “garba” competitions

Every refill of a case of Pepsi 300-ml. bottles will fetch one kilo of Basmati rice free.

After the initial purchase of a 300-ml bottle, consumers can get refills at reduced rates at select stores.

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“Thums Up Toofani Ramjhat” campaign with free passes issued (Thums Up bottle).

(Retail) on-site activities: ‘buy one - get one free’ scheme, lucky draws...

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Highest seasons for soft drink consumption:
(1) summer season
(2) 20-25 days during the Navaratri festival.

Both Coca-Cola and PepsiCo participated in Navaratri celebrations.

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Pepsi’s Sponsorship Of Cricket And Football

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Pepsi’s Sponsorship Of Cricket And Football

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Seasonal Sales Promotions - 2006 Navaratri Campaign

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Seasonal Sales Promotions - 2006 Navaratri Campaign

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COKE AND PEPSI LEARN TO COMPETE IN INDIA

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COKE AND PEPSI LEARN TO COMPETE IN INDIA