对可口可乐和百事可乐在印度的一些看法(英文)

对可口可乐和百事可乐在印度的一些看法(英文) The thoughts of Coke and Pepsi Learn to Compete in India In the soft drink industry, Pepcico and Coca-Cola have always been leading the trend of the industry, and in the process of competing with each other to achieve their growing. Below is some analysis that Pepcico and Coca-Cola entry into India . The political environment that affected both Pepsi and Coca-cola entry into India market:(1)India is seen as an unfriendly country to foreign investors.(2)There is unfavorable policy banning imports,seldom can something imported be sold.(3)In 1991, India experienced an economic crisis of exceptional severity,foreign exchange reserves fell as nonresident Indians (NRIs) cut back on repatriation of their savings, and imports were tightly controlled across all sectors.(4)A new government took office in June 1991 and introduced measures to stabilize the economy in the short term.(5) Following liberalization of the Indian economy and the dismantling of complicated trade rules and regulations, foreign investment increased dramatically. Both companies adopted entry strategy for India market: PepsiCo entered the Indian market in 1986 under the name “Pepsi Foods Ltd. in a joint venture with two local partners, Voltas and Punjab Agro.” Coca-Cola made its return to India by joining forces with Britannia Industries India Ltd., a local producer of snack foods. The new venture was called “Britco Foods.” The advantages of Pepsi (early entry):(1)As the earlier arrival, it gained a foothold in the market while it was still developing.(2)It gained 26% market share by 1993.Disadvantages:(1) It was forced to change its name to Lehar Pepsi.(2) The government limited its soft drink sales to less than 25% of total sales. The advantages of Coca-Cola (later entry):(1) Set up 2 new ventures with Parle to bottle and market product.(2) It was able to buy 4 bottling plants from industry leader Parle.(3) Bought Parle’s leading brands.They are Thums up, Gold Sport and so on.Disadvantages:(1)Denied entry until 1993 because Pepsi was already there.(2)Harder to gain market share.(3)It was not allowed to buy back 49% of equity. Two companies have responded to the sheer scale of operation in India in terms of product policies, promotional activities, pricing policies and distribution arrangements.Product policies:(1)Catering to Indian tastes.Entering with products close to those already available in India such as colas, fruit drinks, carbonated waters.(2)Waiting to transplant new American type drinks.(3)Getting in such new products as bottled water. Promotional activities:(1)Both advertise and use promotional material at Navrartri.Pepsi gives away premium rice and candy with Pepsi.Coca-Cola offers free passes, Coke gives away as well as vacations.(2)Use of different campaigns for different areas of India.“India A” campaigns try to appeal to young urbanites.“India B” campaigns try to appeal to rural areas.Pricing Policies:(1)Pepsi began with aggressive pricing policy to get immediate market share from local competitors.(2)Coca-Cola cut its prices by 15-25% in 2003.Attempt to encourage consumption to try to compete with Pepsi and gain market share. Distribution arrangements:(1)Production plants and bottling centers placed in large cities all around India.(2)More added as demand grew and as new products were added. Finally,I will give examples that each company successfully implemented the strategy of “global localization”.Pepsi’s global localization:(1) PepsiCo entered the Indian market in 1986 under the name“Pepsi Foods Ltd. in a joint venture with two local partners, Voltas and Punjab Agro.” As expected, very stringent conditions were imposed on the venture. Sales of soft drink concentrate to local bottlers could not exceed 25 percent of total sales for the new venture, and Pepsi Foods Ltd. was required to process and distribute local fruits and vegetables. The government also mandated that Pepsi Food’s products be promoted under the name “Lehar Pepsi” (“lehar” meaning “wave”). Foreign collaboration rules in force at the time prohibited the use of foreign brand names on products intended for sale inside India. Although the requirements for Pepsi’s entry were considered stringent, the CEO of Pepsi-Cola International said at that time, “We’re willing to go so far with India because we want to make sure we get an early entry while the market is developing.” (2)In keeping with local tastes, Pepsi Foods launched Lehar 7UP in the clear lemon category, along with Lehar Pepsi. Marketing and distribution were focused in the north and west around the major cities of Delhi and Mumbai (formally Bombay). An aggressive pricing policy on the one-liter bottles had a severe impact on the local producer, Pure Drinks. The market leader, Parle, preempted any further pricing moves by Pepsi Foods by introducing a new 250-ml bottle that sold for the same price as its 200-ml bottle. (3)Pepsi Foods struggled to fight off local competition from Pure Drinks’ Campa Cola, Duke’s lemonade, and various brands of Parle. The fight for dominance intensified in 1993 with Pepsi Food’s launch of two new brands, Slice and Teem, along with the introduction of fountain sales. At this time, market shares in the cola segment were 60 percent for Parle (down from 70 percent), 26 percent for Pepsi Foods, and 10 percent for Pure Drinks. Coca-Cola’s global localization:(1) In May 1990, Coca-Cola attempted to reenter India by means of a proposed joint venture with a local bottling company owned by the giant Indian conglomerate, Godrej. The government turned down this application just as PepsiCo’s application was being approved. Undeterred, Coca-Cola made its return to India by joining forces with Britannia Industries India Ltd., a local producer of snack foods. The new venture was called “Britco Foods.”(2) In July 1993, Parle offered to sell Coca-Cola its bottling plants in the four key cities of Delhi, Mumbai, Ahmedabad, and Surat. In addition, Parle offered to sell its leading brands Thums Up, Limca, Citra, Gold Spot, and Mazaa. It chose to retain ownership only of Frooti and a soda (carbonated water) called Bisleri.