...Coca-Cola in India Coca-Cola is a brand name known throughout the entire world. It covers 60 percent of the $1.6 billion soft drink market. In 2006–2007, Coca-Cola faced some difficult challenges in the region of Kerala, India. The company was accused of using water that contained pesticides in its bottling plants in Kerala. An environmental group, the Center for Science and Environment (CSE), found 57 bottles of Coke and Pepsi products from 12 Indian states that contained unsafe levels of pesticides. The Kerala minister of health, Karnataka R. Ashok, imposed a ban on the manufacture and sale of Coca-Cola products in the region. Coca-Cola then arranged to have its drinks tested in a British lab, and the report found that the amount of pesticides found in Pepsi and Coca-Cola drinks was harmless to the body. Coca-Cola then ran numerous ads to regain consumers’ confidence in its products and brand. However, these efforts did not satisfy the environmental groups or the minister of health. India’s Changing Marketplace During the 1960s and 1970s, India’s economy faced many challenges, growing only an average of 3–3.5 percent per year. Numerous obstacles hindered foreign companies from investing in India, and many restrictions on eco-nomic activity caused huge difficulties for Indian firms and a lack of interest among foreign investors. For many years the government had problems with implementing reform and overcoming bureaucratic and political divi-sions. Business...
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...Coca-Cola in India 1. What aspects of U.S. culture and of Indian culture may have been causes of Coke’s difficulties in India? Something that could have been a problem right from the start is communication. Countries have different ways of communication, and something could be translated completely opposite of what was meant. Communication problems could have been a cause of the problems in India. Also, the different styles of communication could have been an issue because the United States and India do not use the same styles. Another big problem is that something could be accepted in India and be completely wrong in the United States. What some people don’t understand is that every culture has their own way of doing things, and their own “rights and wrongs”. This is where businesses need to decide whether they are going to keep their rules and regulations and bring them into the foreign country (ethnocentric). Or, they need to consider the fact that every culture is different and they need their own practices (polycentric). Whichever way the business decides could bring up problems because if they do us the polycentric approach, then consumers living in the home country are going to see their practices as wrong, when indeed the company is allowing their cultural ways to occur. 2. How might Coca-Cola have responded differently when this situation first occurred, especially in terms of responding to negative perceptions among Indians of Coke and other MNCs? Coca-Cola...
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...What aspects of U.S. culture and of Indian culture may have been causes of Coke´s difficulties in India? The iconic white lettering against the bright red background – a strong brand image that is undoubtedly known throughout the entire world. Holding a market share of 60% in the soft drink market Coca-Cola is a global key player in the beverage industry supported with operations in over 200 countries. Coca-Cola´s brand strength is reinforced by its worldwide distribution and availability. Therefore Coca-Cola chose to penetrate the Indian market as India is one of the most promising countries for overseas business operations according to several rankings and reports. Disastrously, the multinational concern had to face issues regarding its quality, resource and market exploitation. The environmental group CSE accused the company of not being able to adhere to the needs of corporate social responsibility as their products had an unsafe level of pesticides which affect the health of Indian population. Moreover, they were denounced to create severe water shortages for the community by extracting large quantities of water for their factories. Due to its waste extracts, Coca-Cola was criticized for polluting the nearby fresh water and ground water and soil. But it weren´t just these claims that exacerbated the company´s situation in India. In my opinion, it was a lack of understanding of the cultural diversity and not being able to adapt to these differences effectively. It is...
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...Jeremy King CC: Christopher Cowan DATE: 08/07/03 SUBJECT: Coca-Cola India On August 5th, 2003 the Center for Science and Environment (CSE) issued a press release titled “Hard Truths about Soft Drinks”. Tests conducted by CSE at the Pollution Monitoring Laboratory (PML) found concerning amounts of pesticide residue in all twelve major brands of cold beverages sold in and around Delhi. Behind Tokyo, Delhi is the second largest agglomeration in the world with 23 million inhabitants2. Immediate reaction to CSE’s report on soft drinks ranged from the Indian government banning Coke (and Pepsi) products in Parliament cafeterias to widespread mistrust of the Coca-Cola India brand. Within weeks sales dropped by 30-40% and within months Coke’s stock dipped 10 percent on the NYSE1. While CSE’s report has resulted in declining sales, employee morale issues and a negative public brand perception more importantly the insecticides CSE identified are known to cause cancer, birth defects and inflict severe damage to the nervous, immune and reproductive systems. These possible health risks linked to product consumption is the single most significant ethical issue facing Coca-Cola India today. As you requested, I present the following three strategies to assist in the successful rebuilding of the Coca-Cola India brand. The objectives of each strategy are clear; sway public opinion to identify with Coca-Cola India’s dedication to offering the highest standards of social...
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...Coca-Cola in India 1. We can count many aspects of U.S. culture and Indian culture which can cause difficulties in Coca- Cola India. The first big problem is the problem of communication between India and the United States , the language . They have difficulty understanding some points, which distorts communication. The United States and India have different expressions which causes misunderstandings of language. Another problem concerns the laws of the United States and India. Both countries do not have exactly the same laws in this area , which can cause disputes and difficulties . Values, philosophy, way of working, way of thinking, doing business are not at all the same in both countries . 2. Coca-Cola can say that they undertake to check their water they use to make the Coca immediately. They undertake to ensure that there are no pesticides and the water is safe. Coca has established a system of rainwater, there will be no more problems with pesticides because it will only rain water. All other companies could undergo the same checks. 3. Coca-Cola should change its advertising in India and adapt to local tastes. Culture and Indian flavors are different, Coca-Cola has to make changes at this level. Pepsi, Coca direct competitor to successfully entered the local market by adapting and practicing a lot of action of social responsibility (construction of wells to reduce water wastage ...). Coca should also do. 4. Big companies like coca-cola...
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...COCA-COLE IN INDIA SOCIO-CULTURAL FACTORS ANALYSIS Social and cultural environment refers to a social form has been formed under the values, religious beliefs, customs, ethics, and so combined. Any business in a certain social and cultural environment, where corporate marketing activities will be subject to environmental impact and socio-cultural constraint. This knowledge forms values, creates attitudes and influence behavior (Guidelines for Socio-cultural Analysis. Jonathan Renshaw ,Marie-Madeleine, Mailleux ,Sant`ana Volker von Bremen, 2001).Most scholars of culture would agree on the following characteristics of culture.In this essay I will explain the aspects that throw Coca-cola to difficulties in india. India`s water shortage and contamination Water scarcity has always been a problem for india. India`s water resource accounts for just 4% of the global water,, but it needs to feed 17 percent of the world's population. Moreover, India's total annual water consumption is expected to increase from 634 billion cubic meters currently to 1.18 trillion cubic meters in 50 years later. 40 years later. India can supply drinking water per capita will be less than half of 2001. In recent years. India's confronting growing water demand, but supply is dwindling. With the rapid population growth and economic development, coupled with a large number of agricultural areas of water irrigation, there will be a water supply crisis in India. In India, Coca-Cola and Pepsi have been criticized...
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...Coca Cola in India: Managing Cultural Differences Written By Kristina DeLong Jones International University March 14th, 2014 Americans value time. This means they believe keeping appointments and deadlines are very important. EDiplomat (2014) says that people who miss deadlines in America are viewed as irresponsible and undependable. Indians have a more relaxed sense of time. Unfortunately that causes some American business people to look at them as lazy. According to Compare Business Products (2010) Indians are not particularly renowned for their punctuality; they are perceived as laid back people who only watch the clock when it’s close to quitting time. When it comes to Americans they seem to live by “if it wasn’t documented, it never happened.” That means they feel the need to document most things on paper. Americans also use a lot of emails and text. This is very different in India because they don’t keep proper records. They also don’t usually know how to use proper email etiquette. However, they are very good at picking up any new technique. Numerous American companies push for large corporate meetings. Americans express their feelings and opinions much more freely than Indians. Indians are not used to much public speaking, but that is done frequently in America. Indians usually are more apt to express opinions in smaller groups than in large ones like it is done in America. Coca Cola should be concerned when doing business in India because they have expirations...
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..._______________________________________________ Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. The Company’s beverage products comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-to-drink powder products. In addition to this, it also produces and markets sports drinks, tea and coffee. The Coca- Cola Company began building its global network in the 1920s. Now operating in more than 200 countries and producing nearly 400 brands, the Coca-Cola system has successfully applied a simple formula on a global scale: “Provide a moment of refreshment for a small amount of money- a billion times a day.” The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. More than anything, that system is dedicated to people working long and hard to sell the products manufactured by the Company. This unique worldwide system has made The Coca-Cola Company the world’s premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any other consumer product, has...
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...Coca-Cola India On August 20, 2003 Sanjiv Gupta, President and CEO of Coca-Cola India, sat in his office contemplating the events of the last two weeks and debating his next move. Sales had dropped by 30-40%1 in only two weeks. On August 5th, The Center for Science and Environment (CSE), an activist group in India focused on environmental sustainability issues (specifically the effects of industrialization and economic growth) issued a press release stating: "12 major cold drink brands sold in and around Delhi contain a deadly cocktail of pesticide residues" (See Exhibit 1). According to tests conducted by the Pollution Monitoring Laboratory (PML) of the CSE from April to August, three samples of twelve PepsiCo and Coca-Cola brands from across the city were found to contain pesticide residues surpassing global standards by 30-36 times including lindane, DDT, malathion and chlorpyrifos (See Exhibit 2). These four pesticides were known to cause cancer, damage to the nervous and reproductive systems, birth defects, and severe disruption of the immune system. After this incidence the brand image of Coca Cola was tarnished and people started avoiding coca cola consumption. Since 2003 following the various allegations and issues such as presence of pesticide residues in its beverages and water resource contamination issues that the soft drink giant faced in India, their community-focused initiatives were further accelerated. To address these issues and to rebuild its tarnished...
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...“Coca-Cola y Pepsi aprenden a compartir en India” Hechos más relevantes * La experiencia de ambas empresas en la India durante los años 90 y principios del nuevo milenio no fue muy feliz. Experimentaron problemas inesperados, aprendieron que “lo que funciona aquí” no siempre “funciona allá”. * En 1993, más del 45% del sector de los refrescos embotellados de India estaba formado por pequeños fabricantes. * Coca-Cola había estado presente en el mercado Indio desde 1958 hasta que se retiró en 1977, después de una disputa con el gobierno que obligaba a la compañía a ceder el 60% de la empresa a nacionales y revelar su fórmula secreta del jarabe de su refresco. Cuando Coca-Cola se fue, Parle se convirtió en la compañía líder del mercado. * En 1988 muchas empresas de la industria de refrescos cerraron, debido a que el gobierno hizo público una investigación donde revelaba que el BVO (un ingrediente utilizado en los refrescos) era cancerígeno. Lo anterior causó que sólo los más grandes pudieran adaptarse, innovar y seguir existiendo en el mercado Indio. * Existe otra categoría de refrescos con sabor a frutas y sin gas. Esta categoría se encuentra en crecimiento debido a los estilos de vida más saludables. * En 1991 India experimentó una crisis económica muy grave. La producción industrial cayó y la inflación aumentaba. Un nuevo gobierno entró en Julio de 1991 y aplicó medidas par estabilizar la economía. Para 1994, la economía de la India se encontraba restaurada...
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...Coca-Cola Marketing Study Exploring Opportunities In India Agenda • Introduction • Challenges Faced • Opportunities Explored • Planning & Strategy • Actual Implementation & Results • Current Scenario & Future Prospects Coca Cola – The Company Coca Cola Worldwide • It was founded by John Pemberton in 1886 • It is No 1 nonalcoholic beverage company with a market share of with a 52% • It is the largest brand in the world with a brand value of 67 billion dollars. • It has its footmark in more than 200 Countries. Mission • • • • To refresh the World. To inspire moments of Optimism To create Value and Make a Difference The Coca Cola promise simply says - The Coca Cola Company exists to benefit and refresh everyone who is touched by our business. Coca Cola in India • • • • • Entered the India market in early 1790’s. Closed down it operations in India in 1977. Came back to India in 1993. Has a market share of 51%. Created a direct employment of 25,000 people & indirect employment of 1,50,000 people. • Hindustan Coca Cola Beverages is a 100% owned bottler. Challenges Faced Re-entry in India • Late comeback of Coca Cola after PepsiCo had already arrived in Indian market • Pepsi’s head start as a disadvantage for Coca cola’s brand awareness • Acquisition of Parle • “Thumbs Up or Coke” decision • Competing with the help of Thumbs Up in the Cola war Beverages Market in India • No profitability after establishing presence against competition • Marketing...
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...SOCIO CULTURAL BARRIERS FACED BY COCA-COLA IN INDIA AND SOLUTIONS TO OVERCOME THE ISSUES CONTENTS 1. EXECUTIVE SUMMARY 3 2. TERMS OF REFERENCE 3 3. CURRENT SCENARIO 3 4. ANALYSIS OF THE SITUATION 4 4.1. STRENGTH 5 4.2. WEEKNESS 5 4.3. OPPORTUNITIES 5 4.4. THREATS 5 5. SOLUTIONS AND RECOMMENDATIONS 6 5.1. PUBLIC RELATIONS 6 5.2. ENHANCE RELATIONSHIP WITH GOVERNMENT 6 5.3. LAUNCH MARKETING CAMPAIGNS 7 5.4. LISTEN TO THE CUSTOMERS 7 5.5. MANAGING STYLE 7 5.6. PULL BACK PRICE- QUALITY TRADE –OFF PLANS 7 6. SUGGESTIONS 8 7. FORECASTS AND PREDICTIONS 9 8. CONCLUSION 9 9. REFERENCES 10 EXECUTIVE SUMMARY Coca – cola, the world’s largest selling soft drink company had established its strong presence in the world since 1886. Coca-Cola is the first international soft drink brand to enter the Indian market in the early 1970’s. Till 1977 Coca-Cola was the leading brand in India; later, due to FERA (Foreign Exchange Regulation Act), they left India and didn’t return till 1993. Coca-Cola had to face many issues regarding its quality, resource exploitation and market exploitation along with price-quality trade-offs. People all over India are challenging Coca-Cola for its abuse of water resource. Coca-Cola had affected both quality and quantity of ground water. Due to its waste extracts, Coca-Cola was criticized for polluting the nearby fresh water and ground water and soil; because of...
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...Coca-Cola India On August 20, 2003 Sanjiv Gupta, President and CEO of Coca-Cola India, sat in his office contemplating the events of the last two weeks and debating his next move. Sales had dropped by 30-40%1 in only two weeks on the heels of a 75% five-year growth trajectory and 25-30%2 year-to-date growth. Many leading clubs, retailers, restaurants, and college campuses across the country had stopped selling Coca-Cola3 and only six weeks into his new role as CEO, Gupta was embroiled in a crisis that threatened the momentum gained from a highly successful two-year marketing campaign that had given Coca-Cola market leadership over Pepsi. On August 5th, The Center for Science and Environment (CSE), an activist group in India focused on environmental sustainability issues (specifically the effects of industrialization and economic growth) issued a press release stating: "12 major cold drink brands sold in and around Delhi contain a deadly cocktail of pesticide residues" (See Exhibit 1). According to tests conducted by the Pollution Monitoring Laboratory (PML) of the CSE from April to August, three samples of twelve PepsiCo and Coca-Cola brands from across the city were found to contain pesticide residues surpassing global standards by 30-36 times including lindane, DDT, malathion and chlorpyrifos (See Exhibit 2). These four pesticides were known to cause cancer, damage to the nervous and reproductive systems, birth defects, and severe disruption of the immune system.4 In reaction...
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...EXECUTIVE SUMMARY The research study was conducted to learn the localization strategy of the global beverage company Coca-Cola in terms of two of its marketing mix variables, namely, the product line and the distribution process. In the process detailed information was collected on products launched, sales and distribution practices followed by the company, the working style of the retail outlets that stocked and retailed Coca-Cola products, and to a limited extent the psyche of the consumers. In addition the study also uncovered initiatives taken up by the top level management and the strategies they laid out to enhance the company’s market share and sales turnover. INTRODUCTION Definition of product line: A product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges. The major product line decision involves product line length- the number of items in the product line. Product line length is influenced by company objectives and resources. Introduction of the company: “Atlanta Beginnings 1886-1892” It was 1886, and in New York Harbor, workers were constructing the Statue of Liberty. Eight hundred miles away another great American symbol was about to be unveiled. Like many people who change history, John Pemberton, a Civil War veteran and Atlanta pharmacist, was...
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...Coca-Cola: A journey over 120 years old 04 Feb 2009 By Sarimul Islam Choudhury ‘Little drops of joy’ as they call it, soft drink and beverages brand Coca-Cola came into existence in 1886 in Atlanta, New York, USA. From selling only nine glasses of drinks a day initially, after a successful stint of operation for over 120 years, the company currently produces more than 10 billion gallons of drink a day and sells its products across 200 countries worldwide. With more than 450 brands, the company is one of the largest beverage companies in the world keeping the language of refreshment universal across the globe. The product comes into existence: It was1886 in New York Harbor when the construction of the Statue of Liberty was in progress, John Pemberton, a pharmacist in Atlanta, was intrigued by a fragrant caramel-coloured liquid. He carried it a few doors down to Jacobs' Pharmacy where the mixture was combined with carbonated water and sampled by customers who all agreed — that this new drink was something special. Jacobs' Pharmacy then put it on sale for five cents a glass. Later, Pemberton's bookkeeper, Frank Robinson, named the mixture Coca-Cola and wrote it out in a distinct script, the same way it is in use these days. According to the company: “Quality is more than what we taste or see or measure. It shows in our every action. We relentlessly strive to exceed the world's ever-changing expectations because keeping our quality promise in the marketplace is our highest...
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