Coke & pepsi in india presentation
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Transcript of Coke & pepsi in india presentation
COKE & PEPSI IN INDIA
Y YOGESH
ARJUN
Case Synopsis Competitive
Landscape
Industry Background
Key issues Next Steps
RATUL SWOT PEST
SIDDHARTH
Porter’s five forces Recommendations Alternative
scenarios
PRIYANKA Facts & Analysis Potential risks Risk minimization
EpiloguePRIYANKA
AGENDA
INDUSTRY BACKGROUND
An American multinational beverage company headquartered in Atlanta,
Georgia.
Invented in 1886 by pharmacist John Stith Pemberton in Columbus,
Georgia.
The Coca Cola formula and brand was bought in 1889 by Asa Griggs
Candler
Offers more than 500 brands in over 200 countries and territories with
over 1.7 billion servings each day.
Brands under the Coca Cola Company : Fanta orange, Limca, Sprite,
Thums Up, Maaza, Minute Maid, Georgia Gold, Vitingo, Kinley etc.
INDUSTRY BACKGROUND
Creator Caleb Bradham, a pharmacist in New Bern, North Carolina.
Pepsi was originally named “Brad’s Drink”
Created in 1893 and was later renamed Pepsi Cola in 1898
In 1931 the Pepsi Cola Company went bankrupt
In 1939, it was purchased by Charles Guth, the president of Loft Inc.
Pepsi is a known brand available in over 160 countries.
Brands under PepsiCo : Miranda, Mountain dew, 7Up,
Tropicana, Gatorade, Lay’s, Aquafina, Doritos etc.
Company’s expansion strategies to enter into
India
Problems faced with advertising scenario
Cola war between Coke and Pepsi
KEY ISSUES
“A journey begins”
Tactics of entering in India
Challenges faced
Advertising – “Backbone of both companies”
CASE SYNOPSIS
Coca Cola Advertising Campaign
"Hill top" Commercial Always Coca Cola Coca Cola Enjoy Thanda matlab Coca Cola Open happiness
Pepsi Advertising Campaign
This is the right choice baby “ah-ha"
The choice of a new generation
Ask for more "Youngistaan's WOW
COMPETITIVE LANDSCAPE
Strength• Brand recognition• Strong
Advertisement policy.
• It has got high market share
• It has got a very wide distribution channel
• Customer Loyality
Weakness• Produces just
carbonated soft drinks
• It has got high debt level
• It has got undiversified produt portfolio
Opportunities• High consumption
of bottled water• High demand for
healthy food/beverege
• More growth through acquisitions
Threats• Changing customer
choices• Scarcity of water• Competition from
other brands• Health issues
SWOT ANALYSIS
PEST ANALYSIS
SWOT ANALYSIS
Strength• It has got very good
brand portfolio• It is world's second
best selling soft drink brand.
• Constant product innovation.
Weakness• Its mostly
concentrated in North America
• It has got lower operation margin in India.
• Only targets young generation
• It has weak distribution channel
Opportunities• The increasing
population• The diversification• The changing social
trend• Growth in the
healthier beverages
Threats• Water scarcity is a
major issue• Changing consumer
preferences• Tough competion from
Coke.
PEST ANALYSIS
Rivalry among existing firms
1. High competition among Coke and Pepsi
itself
2. Low exit barriers
Threat of new entrants
1. Strong existence of current market players
2. Tough competition from coke and Pepsi
3. High investment on advertising
Bargaining Power of Suppliers
1. Freedom to select the suppliers
2. Companies face low switching costs.
3. Very minimal price difference among suppliers
Threat of substitutes
1. Traditional drinks
2. Non-Carbonated Soft Drinks
3. Other soft drinks keep coming in the market at low prices.
Bargaining Power of Buyers
1. Direct buyers have very less power to set prices.
2. Indirect buyers are highly fragmented.
PORTER’S FIVE FORCES
Low
High
Low
Low
High
1. Indianization
RECOMMENDATIONS
2. More usage of electronic & print media
3. To increase infrastructure
4. Tie ups with restaurant chains
5. Advertise in more traditional
way.
6. Focus on older generation
RECOMMENDATIONS
7. Brand awareness:
Promotional offers on festivals
Sampling in traditional fairs
RECOMMENDATIONS
Promotional campaigns
Sponsorship for
games like
Cricket & Hockey
Focus on “Youth”
ALTERNATIVE SCENARIOS
1. To capture local demand – “Indianization” is important
2. Print and electronic media were the most popular mediums.
3. To generate more sales increasing infrastructure was necessary.
4. India has its own food habits so to connect colas with that and advertise
in traditional way – a great necessity.
FACTS AND ANALYSIS
5. Indian people love to dine on occasions in restaurants so to increase
sales, tie-ups are best way.
6. Older people who stick to their traditional drinks need more focus so to
get them also to consume colas.
7. Brand Awareness:
i. Promotions on festivals- High consumption of food and beverages
ii. Sampling in fairs- Most popular medium of entertainment in 90’s
FACTS AND ANALYSIS
1. Indianization
It may lose its own originality and content
Be with original content and use effective advertisement to go local
RECOMMENDATIONS
POTENTIAL RISKS
RISK MITIGATION
RISKS & MINIMIZATION
2. More usage of
electronic
and print media.
Left the illiterate people untouched and reach to only who have TV and Radios.
Use of billboards, flyers, picture advertising on banners.
RECOMMENDATIONS
POTENTIAL RISKS
RISK MITIGATION
RISKS & MINIMIZATION
3. To increase infrastructure
High cost of Capital
By introducing cost effective infrastructure
RECOMMENDATIONS
POTENTIAL RISKS
RISK MITIGATION
RISKS & MINIMIZATION
5. Advertise in more traditional way.
Misconception might happen that it could only be consumed with snacks.
Emphasize on other aspects as well like thirst
RECOMMENDATIONS
POTENTIAL RISKS
RISK MITIGATION
RISKS & MINIMIZATION
RECOMMENDATIONS
POTENTIAL RISKS
RISK MITIGATION
6. Focus on older people
RISKS & MINIMIZATION
Might lead to message that its only for older people
Effective advertising - which shows people from all age groups
7. Brand awareness:Promotional offers on festivals
Sampling in traditional fairs
People might wait for promotions always to purchase.High cost and be given more in quantity.
Don’t do frequent promotionsTrain employees for sampling
RECOMMENDATIONS
POTENTIAL RISKS
RISK MITIGATION
RISKS & MINIMIZATION
Thorough local market research should be
done
Move to health drinks sector as per Indian consumers taste.
NEXT STEPS
Use instead of pesticides such
as: DDT, Malathion, Chlorpyrifos
Tooth decay due to presence of harmful
Acid
High fructose corn syrup resulting
in obesity and diabetes
Reduction of ground water table
EPILOGUE