Please help me come up with answers to questions 1-9 based off of the text.

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Part 8 Supplementary Material PepsiCo Pepsico entered the Indian market in 1986 under the traditional Gujarati festival goes on for nine nights in the state of name "Pepsi Foods Lid. In a joint venture with two local partiers Gujarat, In the westem part of India. Mumbai also has a significant Voltas and Punjab Apro." Asexpected, very stringent conditions Gujarati population that is considered part of the target market for were imposed on the venture. Sales of soft drink concentric to this campaign. local botikers could not exceed 25 percent of lots As the Regional Marketing Manager for Coca Cola India venture, and Pepsi Foods Lid. was process stated, "As part of the "think local-acd local" business plan, tribute local fruits and vegetables The gow we have tried to involve the masses in Gujarat with "Thus Up that Pepsi Food's products be promoted Lehar Toofani Ramjhat," with 20,000 free paces issued, one per Thurs Pepsi" ('klar" moming "wave"). Forian collabo es in Up bottle. [ Toofan' means a thunderstorm and 'ranjhal' means force at the time prohibited the use of "let's dance," so together these words convey the idea of a 'fast products intended for sale ments dance.'] There are a number of [retail] on-sile activities boo, such for Papa's entry were considered str the CBO of Pepsi as the 'byy one pelone fee' sheme and lucky daw where one International said at that time, "We' willing to po so far with can win a free trip to Goa" (Goal is an India because we want to make sure we got an early cantry white speaking state on the west of the manic i is developing." tourist resorts.) In keeping with local tastes, Pepsi Foods launched Lchar 7UP For its part, PepsiCo also participates in annual Narratri cel- in the clear lemon calegory, along with Lehar Pepsi. Mancling ebrations through massive sponsorships of "para" competitions and distribution were focused in the north and wet around the in selected vehe's in Guant ("Gate" is the name of a dance, major cities of Delhi and Mumbai (formally Bombay) An ages done by women during the Narratri festival.) The Executive Vice sive pricing policy on the one-liter bottles had a severe impact on President for PepsiCo India con imented: "For the first time, Pepsi the local producer, Pure Drinks. The market leader, Park, pre- as tied up with the Gujarati TV channel, Zee Alpha, to telecast empted any further pricing moves by Pepsi Foods by introducing a "Navmiri Uba' on all nine nights. ["Utsa" means festival. Then new 250-ml bottle that sold for the same price as its 200-ml bottle. there is the mega offer for the people of Ahmedabad, Baroda, Pepsi Foods struggled to fight off local compel tion from Surat, and Rajkot whee every refill of a car: of Pepsi 3010-ml. Pur Drinks' Campa Cola, Duke's lemonade, and various brands bottles will eich one kilo of Hasmali rice fire." These four cilies of Park. The fight for dominance: intensified in 1973 with Pepsi localed in the state of Gujarat. Basmati rice is considered a Food's launch of two new brands, Slice and a with the premium quality rice . After the initial purchase of 1 3010-ml bottle, introduction of fountain sales. At this time, market sha a the consumers can get refills at reduced rates at red shoes cola segment were 4 percent for Parle (down from 703 percent), 26 percent for Pepsi Foods, and 10 percent for Pure Drinks. The TV Campaign Both Pepsi-Cola and Coca Cola engage in TV campaignsemploying local and regional Estivals and Coca-Cola In May 1900, Coca Cola aliempted to ren- sports events. A summer campaign caturing 7 UP was launched by ier India by means of a proposed joint venture with a local bot Pepsi with the objectives of growing the calegory and building iling company owned by the giant Indian conplomente, Godrej and zacness. The dale was chosen in coincide with the India- The poremment turned down this application just as PepsiCo's Zimbabwe One Day cricket cries The new campaign slogan application was being approved. U cicied, Coca Cola made its was "Keep It Cool" to emp the produc bute of fresh- return to India by joining forces with Britannia Indus India ment The national cur Lid., a local producer of snack foods. The new alled dapied TV G "Britoo Foods." A 30 ml boule was in Among local producers, it was believed at that time that to increase frequency of pur umplion. Coca Cola would not take market share away from local compa Prior to the introdu of the 300-ml bottle, most soft drinks nies because the beverage market was itself growing con entry were sold in 250 ml, 3010.ml, and 300 ml bottles. In addition to from year to your. Yet this belief did not stop individual 7UP, Pepsi Foods also introduced Mirinda Lemon, Apple, and producers from trying to align themselves with the market leader. Orange in 200-ml bolikes Thus in July 1993, Parle offered to sell Coca-cola its boiling In the past, celebrity actors Amitabh Bachchan and Govinda, plants in the four by cities of Delhi, Mumbai, Ahmedabad, and who are famous mat stars of the Indian movie industry, had Surat In addition, Park offered to sell its leading rands Thurs Up. endorsed Mirinda Lemon. This world famous industry is rened Limca, Citra, Gold Spot, and Mazza. It chose to retain ownership to as "Hollywood" (the Hollywood of India based in Bombay). only of Frooti and a soda (carbonated water) called Histeri. Pepsi's Sponsorship of Cricket and Football (Soccer) After India won an outstanding victory in the FAST FORWARD TO THE NEW India England NalWed One-Day cricket series finals, PepsiCo MILLENNIUM launched a new ad campaign featuring the baiting sensation, Mohammad Kaif. PepsiCo's line-up of other cricket celebrities Seasonal Sales Promotions-2006 Navratrl includes Saurav Ganguly, Rahul Dravid, Hartzjan Singh, Zaheer Campaign In India the summer season for soft drink con- Khan, V.V.S. Laxman, and Ajit Aprior. All of their players were sumption lasts 70 to 73 days, from mid-April to June. During port of the Indian kan for the World Cup Cricket Series. During this time, over 30 percent of the year's carbonated beverages the two months of the Series, a new product, Pepsi Blue, was mar- are consumed across the country. The soond-highed season for beed nationwide. It wass positioned as a "limited edition," icy-blue consumption keis only 20 to 25 days during the cultural festival cola sold in 300-ml, returnable glass bottles and 300-ml plastic of Nantairi ("'Na" means nine and "tairi" means night). This bottles, priced at & rupees (Rs) and Rs 15, respectively. In addition,Cases 1 An Overview commemor live, notreiumable 293-ml Pepsi bottles priced at Rs 12 on the redback, more outlets will be rolled out in offer cities. The were introduced (One rupee wasequal to US 254 cents in 2004) lounge sports red color, keeping with the theme of the Cole logo. It In addition to the sponsorship of cricket events, PepsiCo has has a plant LCD television, video games, and brent surfing trill- who taken advantage of World Cup soccer Lever in India by lembur- ties. The lounge offers the colic range of Coke products. The com- ing football heroes such as Baichung Bhulia in Pepsi's celebrity using Internet to extend its reach into the public domal and music-related advertising communications. These ads fes ppiness.coca-cola.com. The company lured football players pitted against sumo westin. I online "Sprite-itude" zone that provides con- To consolidate its investment in its promotional campaigns, gaming and expressing their cre- PepsiCo sponsored a music video with celebrity endoners include alivity, keeping with the ense attitude of the drink. ing the Hollywood stars, as well as several nationally known crick Coca Cola's specific marketing objectives ac to grow the per- iers. The new music video aired on SHT Max, a safe like channel capita co umplion of soft drinks in the rural markets, capture a broadcard mainly in the northern and western parts of India and larger share in the urban market from competition, and increase popular among the 13-25 year group the frequency of consumption. An "affordability plank," along with introduction of a new 3-rupee bottle, was designed to help Coca-Cola's Lifestyle Advertising While Pepsi's achieve all of these pools promotional efforts focused on cricket, soccer, and other athletic events, Coca Cola's India strategy focused on clevand local ide The "Affordability Plank" The purpose of the "allard- coms in an effort to build a "connection with the youth market" ability plank" was to enforce affordability of Coca-Cola's prod- The urban youth target market, known as "India A," Includes bringing them within arm's mach of consumers, and thereby 18 24 year olds in major metropolitan ac:as. mplion. Ghen the very low per-ca Severd ad campaigns were used to appeal to this market ice option of soft drinks in India, it was expected the ment. One campaign was based on use of "prana" music and actions would expand both the ballet ("Gaina" means to sing.) for soft drinks. Coca Cola India dra The find ad execution, called "Bombay Deans," 1 drinks by 15 percent to 25 percent A. R. Rahman, a tumous music director. This move followed an c successful among the target audience forth India that reduced prices by 10-13 per ing sales by shout 30 percent. It also won a led brands Cor, Thums Up, Limca, Sprite, and Fanta. In other Mumbai Acherising Club. A second co epions such as Rajasthan, western and easiem Uttar Pradesh, a em string was "Cheemai Dream called Tamil Nadu, price's were slashed to Rs 3 for 20-ml glass bolles Madras), a 60-sooond Eature film targeting o and Rs 3 for 300-ml boules, down from the existing Rs 7 and Nadu a region of southem India. The film Calued Vijay, a youth Rx 10 price points, respectively. icon who is famous as an actor in that region of south India. Anotherinitialhe by Coca Cola was the introduction of a new soc, Another of the 60-second films tatued actor Whek Oberoi the "Mini," expected to ince mex total volume of sales and account for with A bhwarya Rai. Both are famous as Hollywood movie stars. the major chunk of Coca Cola's carbonated soft drink sits. Aishwarya won the Miss World crown in 1994 and became an The price reduction and new pr launchwere announced instant hit in Indian movies after deciding on an acting career. together in a new television ad campaign for Fa ia and Co in This ad showed Oberoi trying to hook up with Rai by deliberately Tamil A 301-second Fanta spot featured the bra ambassador, caring his mobile phone in the taxi thats and the actress Simran, well-known for her dane equines in Hindi her. The ad message aimed to emphas and optimism, movies The ads on stuck in a traffic jam. Thirsty, she as well as a theme of "seize the day." n wed print, spee coin to a signals to the vendor outdoor, point of-sale, restaurant and and grocery wants a Fanta Mini by pointing to her orange dress. (Fanta motional events to tie inin the 60-second film. " is an ornate drink.) She gusherFa and sets off a chain EX- soft drinks is high, there is a need to build a deeper brain connect" tion on the crew ded street, withever one from school children to a in urban centers, according to the Direct g for Coca tradi "action. ("Nani" is the Hindi word Cola India "Vick Oberoi who's an up and for grandmother) The director of marketing commented that the has a wholesome, energetic in company wink "sit up and take notice." with the youth, and make them feel that it is a brand that playsa role in their lik, just as much as Levi's or Ray-Han" A NEW PRODUCT CATEGORY In addition to promotions focused on urban youth, Coca-cola India worked hard to build a brand preference amongyoung people Although carbonated drinks me the mainstay of both Coke's and in rural target markets. The campaign slogan aimed at this market Pepsi's product line, he Indian market or carbonated drinks is now not was "thanda mallab Coca Cola" (or "tool means Coca Cola" in al growth wit of only 1 parent Hindi). Coca-cola India calls its rund youth target market "India between 1929 and and 3106, from $131 billion to $1.32 billion. However, H." The prime objective in this market is to grow the generic soft The werdl market for Revenge, which includes soft drinks, juices, drinks category and to develop brand preference for Coke. The and other drinks, grew 6 percent from $3.13 billion to $3 34 billion. "Thanda" (cold ) campaign successfully propelled Cole into the To encourage growth in demand for bottled beverages in the number three position in rural markets. Indian market, several producers, Including Cole and Pepsi, lane Continuing to court the youth market, Cole has opened its first launched their own brands in a new calegory, bottled water. This retail outlet, Red Lounge. The Red Lounge is touted as a one-stop. market was valued at 1000 Cores destination where the youth can spend time and consum products. The first Red Lounge pilot Quitt is in Pune, a basedPart 8 Supplementary Macerial Pepsi and Coke are responding to the declining popularity of The companies formed commitices in India and the Unied soft drinks or carbonated drinks and the increased focus on all States, working in tandemn on legal and public relations bours. They beverages that are non-carbonated. The ultimate goal is leader worked around the clock fashioning rebuttals. They commissioned ship in the packaged water manet, which is growing more rapidly Their own labor jones to conduct tests and waited until the results than any other calegory of bottled beverages. Pepsi is a s e through before commenting in cebail. Their approades back cant player in the packaged water market with its Aquafina fied. Their cludance to give details fanned consumer suspicion which has a significant share of the boiled wai let and is They became bogged down in the technicalities of the charges among the top three retail water brands in the country. Instead of focusing on winning back the sup of their customers. PepsiCo consistently has been working toward reducing its At the start, both co unprepared when one dependence on Pepsi Cola by bolicring its non-cola portfolio aher another announced parti and other categories. This effort is aimed at mak the drinks were prevented from being sold in g more breed based in cicgory growth so that no hospitals, and schools. Politicians exploited the populist p category becomes the key defenninan In hindsight, the Coke com growth. The non-cola segment is said to ormental group has way one-fourth of PepsiCo's overall busi to the bro three to four years. Previoudy, the mu major tion in Indian food products. "Fringe politic chunk of its growth from Pepsi Cola. he publicly hostile to big Western companies, repress of how Among other calegories on which the compa eager they are for their imestment," she said fruit juices, juice-have Failing to anticipate the political potency of the incident, Coke and market in India is approx month Peperi initially hoped that the crisis would blow over and they adopted o month. One of the key factors that his sthe a policy of silence. "Here people inicput silence as guilt" said an emergence of the mass luxury p Indian public relations exert "You have to roll up your sleeves and consciousness about health and wellness." saiful get into a stret fight. Coke and Pepsi didn't understand that" international brand Gatorade has pai coun- Coca Cola crentually decided to go on the attack, though indi ry with consumers embracing a l style that incd ecity, giving detailed briefings by excuthes, who questioned the exercise. The emergence of high-quality gymnasiums, fitness and scientific credentials of their products' accusers. They directed wobic centres minor the fitness trend," sai Reporters to Internet blogs full of entries that were uniformly pro- Coca Cola introduced its Kinky brand of bottled wa Coke, and they handed out the cell phone number for the dicc- wo years achieved a 28 percent market store. It initially produced lor of an organization called the Center for Sanity and Balance in bollled water in 15 plants and later expanded to another 15 plants. Public Lie. Emphasizing that he was not being paid by the indus- The Kinley brand of bottled water wells in various pack sizes 500 mil try. Kishore Asthana, from that center, said, "One can drink a can 1 liter, 15 Her, 2 liter, 3 liter, 20 Her, and 23 like mallest pack of Coke every day for two years before taking in as much pesticide Win priced ai Rs 6 for 3010 ml, while the 2 Ber bollke was Is 17. as you get from two cups of tea" The curent manic i leader, with 4 percent market share, is the The situation continued to spin out of control. Newspapers Hisleri brand by Parle. Other competing brands in this segment printed images of cans of the drinks with headlines like "kx ic include Hailley by Parle, Hello by Hello Mineral Waters PL Lid. cocktail." News channels broadcred images of protesters pouring Pur: Lic by Nett, and a new brand la Railways, Coke down the throats of donkeys. A vice president for Coca Cola called Rail Ncer. India said his "heart sank" when he first heard the accusations becue he knew that consumers would be easily confused. "Hut CONTAMINATION ALLEGATIONS AND even terminology like PP.H-parts per billion-is difficult to WATER USAGE comprehend," he said. "This makes our job very challenging." Pepsico began a public elations offensive, placing large Just as things began to look up for the American compa aherlisements in daily newspapers saying. "Pepsi is one of the ronmental organization claimed that soft d salesi beverages you can drink today." by Coca Cola and Pepsi The company acknowledged that pesticides were present in the residue. Coke and Pepsi denied the chur groundwater in India and found their way into food products in I of policies in agriculture fax general. But, it said, "compared with the permitted levels in tea and pesticide in sugar used in their drinks. Th other food products, pesticide levels in soft drinks are negligible." by the Ministry of Health After all the bad press Coke got in India over the pesticide produced by the to compan calth content in its soft drinks, an activist group in California launched standards campaign directed of U.S. college campucs, accusing Com-Cola Protesters in India carded to reports that Coca Cola and Pepi of India of using precious groundwater, lacing its drinks with contained pesticide residues. Some states In ounced partial bars cides, and supplying farmers with toxic waste used for on Cole and Pepsi products. When those report n the fertilizing their crops. According to one report, a plant that pro- front pages of newspapers in India, Coke and Pepsiexecutives wee duces 300,000 liters of soda drink a day uses 1.5 million Hers of confident that they could handle the situation. But they stumbled. water, enough to meet the requirements of 200100 people They underestimated how quickly events would spiral into a The issue cooked around a bottling plant in Plachimada, nationwide scandal, misjudged the speed with which local politi- India. Although the stale goverment granted Coke pennistion to clans would seize on an Indian environmental group's report to build its plant in 1928, the company was obliged to get the locally attack their global brands, and did not respond swiftly to quell the elected village council's go-ahead in exploit groundwater and other anxieties of their customers. resources. The village council did not renew permission in 202,Cases 1 An Overview claiming the bottling operation had depleted the farmers' drinking 3. The Indian market is enormous in forms of population and water and irrigation supplies. Cole's plant was closed until the people phy How have the two companies responded to the corporation won a court ruling allowing them to copen. sheer scale of operations in India in terms of product poli- The copening of the plant in 30106 led students of a major cies, promotional clivities, pricing policies, and distribution Midwestern university to call for a ban on the sale of all Coo Cola products on campus. According to one source, more than 30 4. "Global localbation" (glocalization) is a policy that both campuses banned Coca Cola products, and hundreds of people in companies have implemented successfully. Give examples the United States called on Coca Cola to close its bottling plants for each company from the case. because the plants drain water from communities throughout India. They contended that such inesponsible practices rob the 3. How can Pepsi and Coke confront the issues of water use poor of their fundamental right to drinking water, or a source of in the manufacture of their products! How can they defuse toxic waste, cause serious hann to the environment, and threaten further boycotts or den against their products? people's health How effective are activist groups like the one that launched In an attempt to stem the controversy, Coca Cola entered talks the campaign in California? Should Coke address the group with the Midwestem university and agreed in cooperate with an directly or just let the furor subside ? independent research assessment of its work in India; the uni- 6. Which of the two companies do you think has better long- versity selected the institute to conduct the research, and Coke term prospects for success in India? Financed the study. As a result of the proposed research program, 7. What lesons can each company draw from its Indian exp- he unhersity agreed to continue to allow Coke products to be s ricnce as it conic mplates entry into offer Hip Emerging on campus. Markcixt In 2108 the study reported that none of the pesticides were J. Comment on the decision of both Pepsi and Coke to enter the found to be present in processed water used for beverage produc- bottled water market instead of continuing to focus on their lion and that the plants met govemmen However, the report voiced concerns about the company's we of core products carbonated beverages and cola-based drinks in particular sure water supplies. Coca Cola was asked by he Delhi-ha cmiconmental recarch group to consider shutting dow 1. Mod cally Coca Cola has decked toenter the growing its bottling plants in India. Coke's capone Indian market for cery drinks, for casted to grow to $370 thing would be to shut down, but the solution tion in 2013 from less than half that in 2003. The competi- we shut down, the aca is still going ton in this market is fierce withestablished firms including want to work with tanning com duce Red Bull and Sohe. With its new brand Hum, Coke Initially the amount of water used" Largeled allemalive distribu ion channels such as pubs, bars, The controversies highlight the challenges that multinational and gyms miher then large ciall outlets such as supermar companies can far in their overseas operations. Despite the bug: bets. Comment on this stringy. popularity of the drinks, the two companies are often held up as symbols of Westem cultural imperialon. THE BATTLEGROUND SHIFTS IN THE NEW DECADE Coca Cola now heads the industry in sides It owns the #1 and $2 brands, Thurs Up and Coke, mespathely. The firm also turned profit in India in 2010 for the first time since its recning in 1913. 4 30wihthe Rather than killing the Thums Up brand, CocaCola executives weely have maintained that name, with its nation Indian Marist Roomi Maprince of U. Comparks In In Fal Drinks Ind The nonalcoholic beverage industry has also ex peri growth surge in the past decade, at some 10 percent per year. And now the Amina Mekil Kin, Ing Conned] Canal Cher, FL. 19541 pp. IT-91: All Oldrill, "India Choram the competitive battle is shifting from urban areas to the vast rural regions of India. QUESTIONS 1. The political enriconment in India has proven to be critical to company performance for both PepsiCo and Coca Cola Chain of Soft Drinks, A Crab In a Crabl Mart,"The New FedThem, Augu India. What specific aqects of the load environment have xoi "Chic and Fugal Try in Iranun Inda Thal Drinks played key roles? Could these effects have been anticipated They Aupat 204 Cobyat The Fla In With Me prior to marketentry? If not, could developments in the on AprilT, DOT, Trieds Ops Now In Cori political mena have been handled beller by each company? 2. Timing of entry into the Indian market brought different and Fought Charges al Tairice Prodarch In a Court results for PepsiCo and Coca Cola India. What benefits or disadvantages accrued as a result of earlier or later marketentry?CASE 1-3 Coke and Pepsi Learn to Compete in India THE BEVERAGE BATTLEFIELD they had to finance their own RAD in order to find a substitute ingredient. Many failed and quickly withdrew from the industry In 20W0, the President and CHO of Coca Cola accried that Coke Competing with the segment of carbonated soft drinks is has had a mother rough run in India, but now it seems to be getting mother beverage segment composed of noncarbonated fruit its positioning right. Similarly, Pepsico's Asia chief ascried that drinks. These are a growth industry because Indian consumers India is the beverage balllefield for this decade and bygood. percive fruit drinks to be natural, healthy, and tasty. The lead- Even though the powerme ed opened its doors wide to ing brand has traditionally been Parle's Foooli, a mango-naged foreign companies, the experience of the world's two pia drink, which was also ex ported to franchises in the United Skies, drinks companies in India during the 1990s and Britain, Portugal, Spain, and Mauritius. of the new millennium was not a hoppy one. Both co experienced a range of unexpected problems and difficult s OPENING INDIAN MARKET Hons that led them to coognine that con special knowledge, skills, and local expertac. In mary In 1901, India experienced an economic crisis of exceptional Cole and Pepsi managers had to learn the hard way that severity, triggered by the rise in imported oil prices following the works here" does not always "work there.""The environment in Find Gulf War (after Ing's invasion of Kuwait). Foreign exchange India is challenging, but we're learning h enesfell as home Indians (NAILs) cut back on repatriation industry leader of the ir savings, imports were lightly co rolled across all sectors, and industrial production Ell while inflation was rising. A new THE INDIAN SOFT DRINKS INDUSTRY c moment took office in June 1991 an introduced measures to stabilize the economy in the short term, then launched a fun- In India, over 45 percent of the soft drinks industry in 1973 con- amental restructuring program to ensure medium-term growth sisted of small manufacturers. Their combined business was worth Results were dramatic. By 1974, infa was halved, exchange $3.2 million dollars. Leading producers included Parke Arro ciones wee gorally incezed, exports were growing. and foreign thereafter "Parle"), Pure Drinks, Modern Foods, and McDowells. investors were looking at India, a leading Big Emerging Market, They offered carbonated orange and lemon lime beverage drinks. with new gea Cos Cob Corporation (hacafter "Coca Cola The tumaround could not be overstated as one commenta- memory to most Indi lor said, "India has been in economic depression for so long that ent in the Indian market from 1934 until its w thdrawal in everything except the smoke-channers, cows and the Taj Mahal lowing a dispute with the government over it as faded from the memory of the world." The Indian goicm- decades in the market, Coca Cola chose to bine Indian tent was viewed as unfriendy to foreign imestors. Outside cut its equity stake to 40 percent and hand over its secret formula vestment had been allowed only in high-lech sectors and was for the syrup. almost enticly prohibited in consumer goods sectors. The "prin- Following Coca Cola's departure, Parle became the market ple of indigenous arailability" had specified that if an item leader and established thriving export franchise business in could be obtained anywhere ebc within the country, imports of Dubai, Kuwait, Saudi Arabia, and Oman in the Gulf, along with similar items were forbidden. As a result, Indian consumers had Srilanka It set up production in Nepal and Bangladesh and served little choice of products or brands and no guarantees of quality or distant markets in Taroania, Britain, the Nehc and the elability United States. Park invested hearily in image: ing at home, Following theradication of the Indian coonomy and the dis- establishing the dominance of its flagship brand, Thurs Up. maniling of complicated trade rules and Regulations, foreign Thus Up is a brand acaciaed w restment incezed dramatically. Processed foods, software, personal success. There are persia engineering plastics, electronic equipment, power generation, and bel of young people aged 13 to 24 years. Parle has been careful in ustries all benefited from the policy changes. the peed not to call Thums Up a cola drink so it has avoided direct comparison with Coke and Pepsi, the world's brand leaders. PEPSICO AND COCA-COLA ENTER The soft drinks market in India is composed of six product coments: cola, "cloudy lemon," " carbonated THE INDIAN MARKET water), mango, and "thear lemon," in order of importance. Cloudy Despite its huge population, India had not been considered by for- lemon and clear lemon together make up the lemon-lime segment. reign beverage producers to be an important market In addition Prior to the arrival of foreign producers in India, the fight for to the delements imposed by the government through its austere local dominance: was between Parle's Thurs Up and Pure Drinks" trade policies, rules, and regulations, local demand for carbonated Campa Cola. drinks in India was very low compared with countries at a simi- In 1968, the industry had experienced a dramatic shake out lol lar stage of economic development. In 1739, the average Indian lowing a goverment warning that HVO, anessent ill ingredient in was buying only three bottles a year, compared with percapita locally produced soft drinks, was carcinogenic. Producers either consumption rates of 11 bottles a year in Bangladesh and 13 in had to resort to using a costly imported substitute, estergum, or Pakistan, India's two neighbors