Coke and Pepsi Learn to Compete in India

Coke and Pepsi Learn to Compete in India

The case of Coke and Pepsi in India is definitely a good lesson for all marketers, since it involves so many aspects of marketing which are crucial to all marketers. In the long-run Indian beverage marketing campaign, both companies had many difficulties, especially Coca-Cola. When dealing with all these problems, the two companies adopted different strategies. Some of them worked successfully while others failed. The main strength of both the two companies in Indian market is their successful marketing mix; while their main weaknesses are the political environment of the Indian market and the trade barriers they faced, the wrong market entry and penetration strategies and the boycott campaigns. Observing and studying all their strength and weaknesses will be a good approach for us to learn from them.

Main Strength

Responded to the enormity of India in terms of it population and geography, Pepsi and Coca-Cola formed their own Marketing Mix.

The product policies of Pepsi launched a new summer campaign for 7UP in order to keep with local tastes. And in 2003 a new product was introduced as Pepsi Blue. The Advertising of Pepsi was done during the cultural festival of Navrartri, a traditional festival held in the town of Gujarat which lasts for nine days: massive sponsorship of "garba" competition and a nationwide television advertising campaign was designed with the objectives of growing the category and building brand salience. Moreover, it used celebrity actors to endorse in the advertisement. The most effective glocalization strategy in promotion has been sponsoring world famous Indian athletes, such as cricket and soccer players. Meanwhile, Pepsi gave away premium rice and candy with Pepsi as a sales promotion. Pepsi started out with an aggressive pricing policy to try to get immediate market share from Indian competitors.