Coca-Cola, PepsiCo and the Indian Soft Drink Beverage Market | Marketing Management Case Studies

Details

Case Code : CLMM044
Publication date : 2009
Subject : Marketing Management
Industry : Fast moving consumer goods; Beverages
Length : 05 Pages
Price : Rs. 100

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Key words:

Advertising wars, print, billboards, banner ads, point-of-purchase, per capita consumption, rural market, distribution, price wars, point-of-sale, pesticide controversy, Indian beverage market, Coca-Cola, PepsiCo, Parle Group, Center for Science and Environment, European Economic Commission, National Council of Applied Economic Research

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

Abstract:

The Indian soft drink beverage market is dominated by Coca-Cola India and PepsiCo. The market had grown over the years to become the third largest consumer of beverages after the US and China. The fact that the per capita consumption of soft drinks in India remained among the lowest in the world added to the high growth potential of the market. Since the 1990s the market had witnessed many price, distribution, and advertising wars between the two cola giants as they fought hard to corner a bigger share of the market. The companies also had to face allegations in 2004 and 2006 that their soft drinks contained high pesticides levels. With the controversy behind it, both the companies were aggressively working toward increasing their market share in India.

Issues:

  » Market analysis
  » Advertising
  » Distribution

Introduction

In early-2009, the Indian arm of PepsiCo. Inc. (PepsiCo) terminated its long-standing endorsement deal with one of superstars of Hindi cinema, Shah Rukh Khan (Khan). PepsiCo reportedly terminated its contract with Khan as the company felt that he did not fit in with its youth-focused advertising strategy...

Questions for Discussion:

1. Critically analyze the Indian soft drink beverage market. Discuss the strategies adopted by Coca-Cola India and PepsiCo over the years.
2. Consider yourself the marketing manager of a national cola company with good cost efficiencies. You have been entrusted with the responsibility of planning and implementing the market strategy for a cola brand. What will your strategy be?