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Coca-Cola and Pepsico. Case Study

In: Business and Management

Submitted By vabrielagallejo
Words 531
Pages 3
Gabriela Vallejo Int. Marketing
Coca-Cola and PepsiCo. Case Study Hw#4

1. Q1. The key specific aspects of the political environment in India that have proven to play a critical role in the performance of both PepsiCo and Coca-Cola are ones that have portrayed India to be seen as unfriendly to foreign investors during years where imports were being banned from being sold in India. Coca-Cola chose to leave India in 1977 after a dispute with the government over its trade secrets and Coca-Colas refusal to cut its equity state to 40 percent. In 1991, a new government took office and introduced measure to stabilize the economy, which was appealing to foreign investors.

2. Q3. In terms of production policies, the two companies entered the market with products close to those already in the Indian market such as colas, fruit drinks, carbonated waters. They also entered the market introducing some new products such as sprite and their own brands of bottled water. Both companies have used promotional strategies to help their brand grow in India. PepsiCo gives away premium rice and candy with purchases of their product while Coca-Cola offers free passes, and special prizes like a vacation. PepsiCo and Coca-Cola have production plants and bottling centers in large cities around India for their wide range of distribution all over. Coca-Cola bought out Parle in 1993, and obtained its bottling plants in four key cities around India.

3. Q5. The Company accepted that pesticides were present in the groundwater in India and found their way into food products in general “compared pesticide levels in soft drink are negligible”. After all the bad press Coke got in India over the...

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