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CASE 1-3 Coke and Pepsi Learn to Compete in India THE BEVERAGE BATTLEFIELD they had to finance their own R&D in order to find a substitute Ingredient. Many failed and quickly withdrew from the industry to 2007, the President and CEO of Coca-Cola smerted that Coke Competing with the went of carbonated soft drinks an has had a rather rough run in India but now it seems to be getting other beverage segment composed of encarbonated fruit drinks its positioning right. Similarly, PepsiCo's Asia chief asserted that These are a growth industry because Indian camers perceive India is the beverage battlefield for this decade and beyond fruit drinks to be natural bealthy, and tasty. The leading brand has Even though the government had opened its doors wide to for traditionally been Partei a mungoflavored drink which eign companies, the experience of the world's two giant soft drinks was also exported to franchises in the United States Britain. Por companies in India during the 1990s and the beginning of the new magal. Spain, and Mauris millennium was not a happy one. Both companies experienced a range of unexpected problems and difficult situations that led them to recognize that competing in India requires special kond OPENING INDIAN MARKET edge, skills, and local expertise. In many ways. Coke and Pepsi In 1991, India experienced an economic crisis of conceptional sever managers had to learn the hard way that what works here does ity, triggered by the imported prices following the first Gulf not always work there. The environment in India is challenging War ater lagi nasion of Kuwait Foreign change reserves fell but we're learning how to crack it says an industry leader as nonresident Indians Ris) cut hacten nepatriation of their sar ins, imperts were tightly controlled across all sections and industrial THE INDIAN SOFT DRINKS production fell while in wang A new government took etlice in June 1991 and introduced measures to stabdize the con INDUSTRY ty in the short term, the launched a fundamental restructuring program to ensure medie prowth Results were dramatic By In India over 15 percent of the soft drinks Industry in 1993 sisted of small manufacturers. Their combined business was worth 1994, inflation was halved changes were greatly increased $3.2 million dollars. Leading producers included Parle Agro here sports were growing, and foreign imata were looking at India, after "Parle"). Pure Drink Modern Foods, and McDowells. They leading Big Emerging Market, with newges The turnaround could not be tied as one commentatie odered carbonated orange and lemon-lime beverage drinks Cock said. "India has been inci den for so long the Cola Corporation (hereaftet "Coca-Cola was only a distantemerything except the snake-charmer comes and the Ta Mahal has ory to most Indians at that time. The company had been present in the Indian market from 1958 until its withdrawal in 1977 following faded from the memory of the wo The Indian government a dispute with the government over its trade secrets After decades in was viewed unfriendly to forgetoes Outside invest the market. Coca-Cola chose to leave India rather than cut its equity ment had been allowedly in high-tech sectors and was almost cetirely prohibited income pods sect. The principle of stake to 40 percent and hand over its secret formula for the syrup Following Coca-Coll departure Pule became the market indigenous wwwbity had specified that if it could be ob leader and established thriving export franchise businesses in tained anywhere he within the country imports of similaritiems were forbidden As a te Indian consumers had limle choice of Debal. Kowalt. Saudi Arabia, and Oman in the Gulf, along with Si products or brands and be guarantees of quality reliability Lankt. It set up production in Nepal and Bangladesh and served Following liberalization of the Indian cow and the di distant markets in Tanzania, Britain, the Netherlands, and the Limited States. Parle invested heavily in image advertising at home. mandling of complicated trade rules and regulations for establishing the dominance of its flagship brand. Thums Up investment increased dramatically. Processed foods, software en Thum Upis a brand associated with a "job well done and per gineering plastic, electro equipment, power generation and wonal succes. These are persuasive messages for its target market petroleum Industries al benefited from the policy changes of young people aged 15 to 24 years. Parle has been careful in the past not to call Thums Lip a cola drink so it has avoided direct PEPSICO AND COCA-COLA ENTER comparison with Coke and Pepsi, the world's brand leaders THE INDIAN MARKET The soft drinks market in India is composed of six products ments: cola, doudy lemon orange soda carbonated water). Despite its huge population India has been considered by for mango, and clear lemon. In order of importance. Cloudy lemon and beverage produces be an important market. In addition dear lemon together make up the lemon lime segment. Prior to the to the deterrents imposed by the government through its are arrival of foreign producers in India, the fight for local dominance trade policies, rules and regulation local demand for carbonated was between Parles Thums Up and Pure Drinks Campa Cola drinks in India was very low compared with tries at a similar In 1988 the industry had experienced a dramatic bakeout fol stage of economic development. In 1989, the average Indian was lowing a government warning that BVO, an essential ingredientin buying only three bottles a year, compared with per capita con locally produced soft drinks, was carcinogenic Producers either sumption rates of 11 bottles a year in Bangladesh and 13 in Paki had to resort to using a costly imported substitute, estergumor stam, Indiais two neighboek Part 6 Supplementary Material PepsiCo PepsiCo entered the Indian market in 1986 under western part of India. Mumbal also has a significant Guarati popola the name "Pep Foods Lad in a joint venture with two local part titlust is considered part of the target market for this campaign Rts. Voltes and Punjab Aro As expected. very strepent condi As the Regional Marketing Manager for Coca Cola India tions were imposed on the venture Sales of soft drinkconcentrate to stated. "As part of the think local act local business plan. We have local bottlers could not exceed 25 percent of total sales for the new tried to involve the man in Gujarat with "Thumu Up Toofani venture, and Pepsi Foods Lol was required to process and distribute Ramjhat, with 20,000 free passes issoed, one per Thus Up bottle local fruits and vegetables. The government also mandated that Plepi I'Toofan means a thunderstorm and rambat means "let's dance Foods products be promoted under the name "char Pepsi" ("char So together these words come the idea ofa Yast dance. There are meaning". Foreign collaboration rules in force at the time number of retail on site activities to such as the buy one- prohibited the use of foreign brand names un products intended for one free' scheme and lucky draws where one can win a free trip sale inside India. Although the requirements for Pepsis entry wese to Goa" (Geo is an independent Portuguese-speaking stile on the considered stringent, the CEO of Pepsi-Cola Internatioaal adat west coast of India. famed for its beaches and tourist resort.) that time. We're willing to go so far with India because we want For its part. PepsiCo ale participates in annual Navratrice to make sure we got an early entry while the market is developing ebrations through massive sponsorships of "garba competitions in In keeping with local tastes, Pepsi Foods launched Lehar 7UP Selected venues in Gujarat. ("Garba is the name of a dance. done by in the dear lemon category, along with Lehar Pepsi Marketing and women during the Navratri festival.) The Executive Vice President distribution were found in the north and we around the major for PepsiCo India commented"For the first time. Pepsi has tied cities of Delhi and Mumbai formally Bombay). An agressive up with the Gujarati TV channel, Zee Alpha, to telecast Navratri pricing policy on the one-liter bottles had a severe impact on the Uhur on all nine night. 'Utsav' means festival. Then there is local producet Pure Drink The market leader. Parle preempted the mega offer for the people of Ahmedabad. Baroda. Surat, and any further pricing moves by Pepsi Foods by introducing a new Raskot where every refill of a case of Pepsi 300-ml bottles will fetch 250 ml bottle that sold for the same price as its 200 ml bottle vee kilo of Basmati rice free. These four cities are located in the Pepsi Foods struggled to fight off local competition from state of Gujarat. Hasmati rice la considered a premium quality rice. Pure Drink Campa Cola. Duke lemonade, and various brande After the initial purchase of a 100 ml bottle consumers can get of Park. The fight for dominance intensified in 1993 with Pepsi refills at reduced rates a select stores Food launch of two new brands, Slice and Teem, along with the introduction of fountain aler . At this time , market shares in the The TV Campaign Both Pepsi Cola and Coca Cola cola segment were 60 percent for Patie (down from 70 percent). engage in TV campaigns employing local and regional festivals and 26 percent for Pepsi Foods, and 10 percent for Pure Drinks, sports events. Asummer campaign featuring 7UP was launched by Pepse with the objectives of growing the category and building Coca-Cola in May 19%, Coca-Cola attempted to reen brand awareness. The date was chosen to coincide with the India- ter India by means of a proposed joint venture with a local bat Zimbabwe One Day cricket series. The new campaign slogan was tling company owned by the giant Indian conglomerate. Godre "Keep Cool to emphasize the product attribute of refreshment The government turned down this application just as PepsiCo's The nitional campaign was to be reinforced with regionally adapted application was being approved. Underred, Coca Cola made its TV campaigns, outdoor activities and retail promotion return to India by joining forces with Britannia Industries India A 200-ml bottle was introduced during this campaign in order Indeslocal producer of snack foods. The new venture was called to increase frequency of purchase and volume of consumption "Brico Foods Prior to the introduction of the 200 ml bottle, most soft drinks Among local producer, it was believed at that time that Coca were sold in 250 ml, 300 ml. and 500 ml bottles. In addition to Cola would not take market share away from local companies 7UP. Pepsi Foods also introduced Mirinda Lemon. Apple, and because the beverage market was itself growing consistently from Orange in 200 ml bottles year to year. Yet this belief did not stop individual local produc In the past, celebrity acton Amitabh Bachchan and Govinda es from trying to align themselves with the market leader. Thes who are famous malestars of the Indian movie industry. had en in July 1993. Parie offered to sell Coca Cola its bottling plants doesed Mirinda Lemon. This world-famous industry is referred to in the four key cities of Delhi Mumbai, Ahmedabad and Surat. In as "Bollywood (the Hollywood of fodia based in Bombay) addition, Parfe offered to sell its leading brands Thume Up Limce. Citra Gold spot and Mana, chose to retain ownership only of Pepsi's Sponsorship of Cricket and Froot and a soda (carbonated water) called Bisleri Football (Soccer) Alle India won an outstanding vie tory in the India England NatWest One Day cridet series finals FAST FORWARD TO THE NEW PepsiCo launched a new ad campaign featuring the batting sense MILLENNIUM the Mohammad Kalli PepsiCo's line-up of other cricket celebrities includes Sure Ganguly Rahul Dravid, Harbhajan Singh. Zaheer Seasonal Sales Promotions-2006 Khan, VVS Laxman, and Ast Agarkar All of these players were part Navratri Campaign In India the summer season of the Indun team for the World Cup Cricket Series During the two oft drink comption last 70 to 5 days from mid April to fune months of the Series, a new product. Pepeda marketed na During this time, over 50 percent of the year's carbonated beveragestionwide. It was positioned as a limited edition" icy blue cola sold are consumed across the country. The second-highest season for in 300-ml. returnable glass bottles and 500-ml plastic bottles, priced consumption laws only 20 to 25 days during the cultural festival of at rupees (RA) and Rs 15,pectively, in addition, commemora Navratri ("Nar" meansin andratt means night). This traditional tive.nonreturnable 250ml Pepbottles priced at Rs 12 were intro Gujarati festival goes on for nine nights in the state of Gujarat, in the duced (One rupees equal to US 251 cents in 2008 Cases 1 An Overview In addition to the sponsorship of cricket events. Pero has It has a giant LCD clevision, video games and Internet surfing ta also take advantage of World Cup soccer fever in India by featur cilities. The lounge is the entire range of Coke products. The ing football heroes such as Baichung Bhutia in Pepsi celebrity and company is also using Internet to extend its reach into the public muskelated advertising communication. These ads featured domain through the web www.onc.com. The company football players pitted against sumo wrestlers has created a special online Sprite-derone that provides con- To consolidate its investment in its promotional campaigns, sumets opportunities for online gaming and espeessing their cre PepsiCo sponsored a music video with celebrity endorsers includ ativity, Keeping with the no-none attitude of the drink Ing the Bollywood stars, as well as several nationally known crick- Coca-Cola's specific marketing objectives are to grow the per- eters. The new music video aired on SET Max a satellite channel capita consumption of soft drinks in the rural markets, capture a broadcast mainly in the northern and western parts of India and larger share in the urban market from competition, and increase popular among the 15-25 year age group the frequency of consumption. Anfordability plank" along with introduction of a new 5 rupee bottle, was designed to help achieve Coca-Cola's Lifestyle Advertising While all of these goals Pepsis promotional efforts focused on cricket soccer and other athletic events, Coca Colas India strategy focused on relevant local The "Affordability Plank" The purpose of Idioms in an effort to build a connection with the youth market." the "altordability plank" was to enhance affordability of Coca The urban youth target market, known as "India A indudes Colas products, bringing them within am's reach of consumers 18-24 year olds in major metropolitan Areas and thereby promoting repolar consumption. Given the very low Several ad campaigns were used to appeal to this market seg per capita consumption soft drinks in India, it was expected ment. One campaign was based on use of "gaana music and hallet. that price reduction would expand both the consumer base and ("Gaan' means to sing! the market for soft drinks Coca-Cola India dramatically reduced The first ad execution, called "Bambay Dreams, featured prices of its soft drinks by 15 percent to 25 percent nationwide to A R Halsmana famous music director. This approach was very encourage consumption. This mowe followed an earlier regional excessful among the target audience of young people, increase action in North India that reduced prices by 10-15 percent for ing sales by about 50 percent. It also won an Eff Award from the carbonate brands Cake, Thuime Up, Limca, Sprite, and Fanta Mumbai Advertising Club A second execution of Coke's southern In other regions such as Rajasthan, western and eastern Uttar strategy was "Chenal Dreams" (Chennai was formerly called Ma- Pradesh, and Tamil Nadu, prices were stashed to for 200 ml dras), a 60-second feature film targeting consumers in Tamil Nadu, glass bottles and Rs for 300-ml bottles down from the existing u region of southern India. The film featured Vijay #youth icon 7 and Rs 10 price points, respectively who is famous as an actor in that region of south India Another initiative by Coca Cola was the introduction of a new Another of the 60-second films featured actor Vivek Oberoi sure, the Mini expected to increase total volume of sales and account with Aishwarya Rai Both are famous as Bollywood movie stars for the major chunk of Coca-Coll carbonated soft drink sales Aishwarya won the Miss World crown in 1994 and became an in The price reduction and new production launch were an stant hit in Indian movies after deciding on an acting career nounced together in a new television ad campaign for Fanta and This ad showed Oberoi trying to hook up with Rai by deliberately Coke in Tamil. A 30-second Fanta spot featured the brand am leaving his mobile phone in the taxi that she hals, and then calling bassador, actress Simran, well-known for her dance sequences in ber. The ad message aimed to emphase confidence and optimism. Hindi movies. The ad showed Simran stuck in a traffic jam. Thirsty as well as a theme of the day. This campaned print out the touses a rupee coin to a roadside stall and signal to the ven door point-of-sale, restaurant and grocery chains, and local promo dor that she wants Fanta Mini by politing to her orange dress tional events to the into the 60-second film "While mureness of soft (Fanita is an orangeade drink.) She gets her Fanta and sets of a drinks is high, there is a need to build a deeper brand connectin chain reaction on the crowded street with everyone from school urban centers , according to the lirector of Marketing for Coca-Cola children to a traditional ani mimicking her action. ("Nani" is India "Vivek Oberol-whol an up and coming star today, and use the Hindi word for grandmother) The director of marketing.com wholesome, energetic image will help build a stronger bond with mented that the company wanted to make consume it up and the youth, and make them feel that it is a brand that plays a role in take notice their lifir, juait as much as Levisor Ray Ban In addition to promotions focused on urban youth, Cocx A NEW PRODUCT CATEGORY Cola India worked hard to build a brand preference among young people in rural target markets. The campaign slogan aimed at this Akhough cabomated drinks are the mainstay of both Coke's and Pep's market was "thanda matlab Coca Cola" for "cool means Coca product line, the Indian market in carbonated drinks is now no grow Cola" in Hindi). Coca Cola India calls its rural youth target market ity. I grew at a compounded annual growth rate of only 1 percent be India B. The prime objective in this market is to grow the generic tween 1999 and 2006, from 51.31 billion to $1.32 billion. However, the oft drinks category and to develop brand prefetence for Cake. The Overall market for beverage, which includes soft drinks, faces, and handicoold) campaign successfully propelled Cake into the other drinks, jew percent from $3.15 bin to $3.34 billion number three position in rural markets To encourage growth in demand for bottled beverages in the Continuing to court the youth market Coke has opened its first Indian market, several producers, induding Coke and Pepsi, have retail outlet, Red Lounge. The Red Lounge is touted as a one-stop launched their own brands in a new category, bottled water. This destination where the youth can spend time and consume Coke market was valued at 1,000 Crores products. The first Red Lounge pilot outlet is in Pune, and based on the feedback more outlets will be rolled out in other cities. The lounge sports red col keeping with the theme of the Cake logo Part 6 Supplementary Material Pepsi and Coke are responding to the declining popularity of The companies formed committees in India and the United soft drinks or carbonated drinks and the increased on all States, weiling in tandem en legal and public relation me. They beverages that are non-carbonated. The ultimate goal is leadership worked around the dock fashioning rebuttals. They commissioned in the packaged water market, which is growing more rapidly than their own laboratories to conduct tests and waited until the results any other category of bottled beverages Pepit is significant player come through before commenting in detail. Their approaches back in the packaged water market with its Aquafina brand, which has a fired. Their reluctance to give details and consumer suspicion. significant share of the bottled water market and is among the top They became bogged down in the technicalities of the chargest three retail water brands in the country dead of focusing on winning back the support of their com PepsiCo consistently has been working toward reducing its At the start both companies were unprepared when one state dependence on Pepsi Cola by bolstering its nocela portfolio after another announced partialbanson Cole and Pepsi products and other categories. This effort is aimed at making the company the drinks were prevented from being sold in government office more broad based in category growth so that no single product or hospitals and school. Politicians exploited the populist potential category becomes the key determinant of the company's market In hindiught, the Collecommunications director d she could growth. The non-cola segment is said to have grown to contribute see how the environmental group had picked Coca-Cola as a way one-fourth of Pepsicos overall business in India during the past of attracting attention to the broader problem of pesticide contam three to four years. Previously the multinational dermed a major ination in Indian food products. Fringe politicians will continue chunk of its growth from Pepa Cola to be publicly hostile to big Western companies, regardless of how Among other categories on which the company is focusing are eager they are for their westment," she said fruit juicer, juice-based drinks and water. The estimated fruit juice Falling to anticipate the political potency of the incident, Coke and market in India is approximately 350 Crores and growing month Tepsi initially hoped that the could blow over and they adopted to month. One of the key factors that has triggered this trend is the a policy of silence. Here people interpret silence as guilt" said an emergence of the man luxury gent and income Indian publication experto have to ml up your love and consciousness about health and wellness. Our hugely successful it into a street fight Coke and Pepididn't understand that international brand Gatorade has gained momentum in the coun Coca-Cola eventually decided to go on the attack, though in try with consumers cacing a lifestyle that includes sports and directly giving detailed bilings by caecutives who questioned exercise. The emergence of high-quality gymnasium, fitness and the scientific credentials of their products accuses. They directed aerobic centres mirror the fitness trend said a spokesperson reporters to Internet blogs full of entries that were uniformly pro- Cou Cola introduced its Kinley brand of bottled water and in Coke and they handed out the cell phone number for the directe two years achieved a 28 percent market share initially produced of an organisation called the Center for Sanity and Balance in Pub bottled water in 15 plants and later expanded to another 15 plants lic Life Emphasizing that he was not being paid by the industry, The Kinley brand of bottled water is in various pack 500 ml Kishore Asthans from that center, said. "O can drink a can of 1.1.5 lnr. 2 liter 5 liter. 20 liter, and 25 liter. The smallest pack Coke every day for two years before taking in as much pesticideas was priced at Rss for 500 ml while the 2-ter bottle was Rs. 17. you get from two cups oftea The current market leader with 40 percent market share is the The situation continued to spin out of control Newspapers Bisleri brand by Parle. Other competing brands in this segment printed images of cans of the drinks with headlines like Toxic include Bailey by Parle, Hello by Hello Mineral Waters Pvt. lat. cocktail News channel broadcast images of protesters pouring Pure Life by Nestle and a new brand launched by Indian Railway Colle den the throats of donkeys. A vicepresident for Coca-Cola called Rail Neer. India said his heart sank when he first heard the accesations be- cause he knew that consumers would be easily confused. But even CONTAMINATION ALLEGATIONS terminology like PP:--parti per billions difficult to compre AND WATER USAGE hend." he said. "This makes our job very challenging PepsiCo began a public relations ofensie. placing large adver Just as things began to look up for the American companies an en thements in daily newspapers saying, "Pepst is one of the safest virutmental organisation daimed that soft drinks produced in India beverages you can drink today by Coca-Cola and Pepilcontained significant levels of pesticide rest The company acknowledged that pesticides were present in the due. Coke and Pepsi denied the changes and argued that extensive e groundwater in India and found their way into food products in of pesticides in agriculture had resulted in a minute degree of pesti jeneral. But it said. "compared with the permitted levels in tea and cide in sugar used in their drinks, The result of tests conducted by other food products, pesticide levels in soft drinks are negligible the Ministry of Health and Family Welfare showed that soft drinks After all the bad pre Cole got in India over the pesticide produced by the two companies were safe to drink under local health content in its sot drinks, an activist group in California launched Mandards a campaign directed at US college campuses accusing Coca- Protesters in India reacted to reports that Coca-Cola and Pepal Cola of India of using precious groundwater, lacing its drinks contained pesticide residues. Some states announced partial bans with pesticides, and supplying farmers with toxic waste used for on Coke and Pep peoducts. When the reports appeared on the fertilizing their crops. According to one report a plant that pro front pages of newspapers in India, Coke and Pepse executives were docer 300,000 liters of soda drink a day uses 1.5 million liters of confident that they could handle the situation. But they stumbled water, enough to meet the requirements of 20,000 people They underestimated how quickly events would spralinto These revolved wound & bottling plant in Machimada fitiomide scandal, misjudged the speed with which local politi- India. Although the state government granted Coke permission to cians would see on an Indian environmental groups report to build its plant in 1998, the company was obliged to get the locally attack their global brand, and dad sotspoed wilty to quell the dected village council go-ahead to exploit groundwater and other antieties of their customers resources. The sillage council did not renew permission in 2002. Cases 1 An Overview daiming the bottling operation had depleted the farmers' drink ing water and irrigation supplies Cakes plant was dosed until the corporation won a countriling allowing them to reopen. The reopening of the plant in 2006 led students of a major Midwestern University to call for a ban on the sale of all Cock Cola product on campus. According to one or more than 20 campuses banned Coca-Cola products, and hundreds of people in the United States called on Coca-Cola todose its bottling plants because the planta drain water from communities throughout India. They contended that such irresponsible practices mob the poor of their fundamental right to drinking water, are source of toxic waste che series harm to the environment, and threaten people's health In an attempt to stem the controversy, Coca-Cola entered talks with the Midwester university and agreed to cooperate with an independent research assessment of its work in India, the un versity selected the institute to conduct the research, and Coke financed the study. As a result of the proposed research program, the university agreed to continue to allow Coke products to be sold on campus In 2008 the study reported that none of the pesticides were found to be present in processed water used for beverage produc tion and that the plants met governmental regulatory standardi However, the report voiced concerns about the company of sparse water supplies, Coca-Cola was asked by the Delhi-based en vironmental research group to consider shutting down one of its bottling plants in India. Cole's response was that the entiest thing would be to shut down, but the solution is not to run away. If we shut down, the area is still going to have a water problem. We want to work with farming communities and industries to reduce the amount of water ted" The controversies highlight the challenges that multinational companies can face in their were operation. Despite the huge popularity of the drinks, the two companies are often held up symbols of Western cultural imperialism THE BATTLEGROUND SHIFTS IN THE NEW DECADE Coca-Cola now leads the industry in allt owns the #1 and 2 brands, Thums Up and Coke, respectively. The firm also turned profit in India in 2010 for the fiest time since its reentry in 1993. Rather than liling the Thume Up brand, Coca Cola executives wisely have maintained that same with its nationalistic popularity The nonalcoholic beverage industry has also experienced a growth vurge in the past decade, tome 10 percent per year. And now the competitive battle is shifting from urban areas to the vast rural regions of India 3. The Indian market is enormous in terms of population and Beography, How have the two companies responded to the sheer scale of operations in India in terms of product poli cies promotional activities pricing policies and distribution arrangements? 4. "Globul localization' (glocalisation) is a policy that both contpanies have implemented successfully Give examples for each company from the che 5. How can Pepstand Coke confront the bes of water use In the manufacture of their products? How can they defuse further boycotts or demonstrations against their products? How effective are activist groups like the one that launched the campaign in California? Should Coke address the group directly or just let the furor det 6. Which of the two companies do you think has better long- ter prospects for sucess in India? 7. What lessons can each company draw from its indin ex perience as it contemplates entry into other By Emerging Markets! & Comment on the decision of both Peps and Coke to enter the bottled water market instead of continuing to focus on their core products-carbonated beverages and col-based drinks in particular 9. Most recently Coca Cola has decided to enter the growing Indian market for energy drinks, forecasted to grow to 5370 bilion in 2013 from less than half that in 2005. The competi tion in this market is fierce with established firms including Red Bull and Sobe. With its new brand Furn.Coke initially fargeted alternative distribution channels such as pubs, bars, and gyms rather than large retail outlets such a supermar kets Comment on this strategy The compared by Lynn Martin Disidedow of the Academy of Martin Score We Academy odhand Viks Kanat Att Struggment in the Mila Bay Dr. S. Amite din pred this come from public folder wher dient handling me pic The 300 See Amine and Deepa Rada Market in the New Opened Indian Memper of UN Campanie the Sulinky Two tym power the Academy of Mural GLANS Olin Germania, w World September den Game Code ape testa Ale The Chameleon en Fox June 2004. Go Pummelite Coke Bolig Meda PR. 18200 V Cece Colet plan 16.00pm ugler The September 2002 Gant Sun And The Wine Cep Ten The Deine Are Sale The New In The Agust 2008 Catalpa The Was The Lab 11.2007 "Mach Geile Fetal Format Op Cola Cole on the Tube 300 dpi Sad Charges Themed Thoduct Cented Waters Widescuela Shehu Bet on the 2001 C CA Second Sherler De Man With Tale Tudut the and The Wall Street, May 30 QUESTIONS L. The political environment in India has proven to be critical to company performance for both psiCo and Coca-Cola India What specific aspects of the political environment have played key roles? Could these effects have been anticipated prior to market entry? If not could developments in the political arena have been handled better by each company 2. Timing of entry into the Indian market brought different re sults for PepsiCo and Coca-Cola India What benefits op die advantages accrued as a result of earlier or later market entry