Though the effort was commendable it was a major blunder. What did they do wrong? This strategy has been employed by both the companies in the recent years and it seems to be working. This gave Pepsi a lead in the market, though short lived.
They may rethink some of the decisions they have made in regards to the use of water in the manufacture of their products. It opened up a whole new market segment for the company. How effective are activist groups like the one that launched the campaign in California?
What these companies must learn is to do an extensive research about the culture, society and the government structure prior to entering to a consumer market. It started spreading its wings to include sports beverages, varied versions of the Pepsi drink and non-carbonated beverages in its portfolio.
Then, they offered the government attractive promises that on the surface were beneficial for the greater number of people which was difficult to resist. Pepsi and the Cola Wars The cola wars began somewhere in the mid s.
If not, could developments in the political arena have been handled better by each company? It was the candy manufacturer, Charles G. Finally, the case takes a look at the contract farming initiatives undertaken by Pepsi since the s and seeks to critically analyze the strategies used by the company to enter India.
The major hurdle that Pepsi faced in their move to enter India was the political climate of the country as well as the regulated economy which was largely controlled by the government and dominant political parties.
He was inspired to experiment with various products and ingredients to create a suitable summer drink that became highly sought after way back in the summer of Indians are encouraged to consume national products.
This campaign was quite a breakthrough and really made an impact. Marketing Blunders One of the major blunders that Pepsi did in its marketing runs is the literal translations of some of its slogans into other languages.
The second issue that was faced by both the companies was a strong sense of nationalism in India. When it comes to cross national advertising, there is always the inherent risk of alienating the people. Hence in Japan they had to break their tradition of running with the global campaign and come up with a campaign that the Japanese would identify with and was more Japanese.
PepsiCo also focused on introducing some local tastes from their brand name 7UP Lehar. What actions should Pepsi take in the future to protect its market position?
From Japan Pepsi learned a valuable lesson — the same ad will not have the same effect everywhere. The Indian market is enormous in terms of population and geography.
This could create more problems for them. Similarly, the goodwill of the company suffered a heavy blow when its bottle cap campaign number inside the cap and a few winning numbers win fabulous prizes in Chile ended in wreckage of the company.
They also made an alliance with the local companies which helped in assuring the government and the public that they were being true to their proposals. In my opinion this issues could have been anticipated prior to coming to India and arrangements could have been made to deal with them effectively.
It was this summer inspiration that later evolved into what we now know as Pepsi Cola. On the other hand PepsiCo has focused on targeting the same customer base as by Coca Cola but with the help of sporting stars mostly Cricket stars.
Pepsi has a good relation with the government than Coca Cola has in my opinion which would help Pepsi and would prove troublesome for Coca Cola. The company in its agricultural venture also had difficulty in convincing farmers to se their technology and to work for them as subcontractors.
Pepsi also exploited famous movies of the time like Star Wars to improve their brand image and create interest among the people. Could these effects have been anticipated prior to market entry?
The company posted pictures of the then leaders of the United States and Russia sipping the drink.Apr 25, · Reasons for Pepsi’s globalization Saturation of markets in USA Emerging economies opening up India’s vast population was an attractive proposition Arch rival Coca-Cola was also globalizing Various methods for companies to enter a foreign market Joint venture - The cooperation of two or more individuals or.
Pepsi Goes Farming - Finally Though Pepsi attracted a lot of criticism, many people felt there was a positive side to the companys entry into India.
Pepsi’s tomato farming project shot up India’s tomato production from mn tonnes in ’ to mn tonnes in ’ Punjab’s overall tomato productivity went up from 28, tonnes. Pepsi's Entry into India: A Lesson in Globalization.
SUMMARY: The case discusses the strategies adopted by the soft drinks and snack foods major PepsiCo to enter India. Entry into India: A Lesson in Globalization Case summary: The case discusses the major strategies adopted by Pepsi Co (Soft drinks & snack food major) to enter the Indian market in the late s.
Initially the company found it very hard to sell itself to the Indian government as the Indian economy was highly regulated. Case Study: Coke and Pepsi Learn to Compete in India. The political environment in India has proven to be critical to company performance for both PepsiCo and Coca-Cola India.
Pepsi's Entry into India: A Lesson in Globalization "Convincing India that it needs Western junk has not been easy."J - A New Internationalist Magazine article, commenting on Pepsi's struggle to enter India, in AngustDownload