Coca-Colas Strategies in India - Essay Example

Because of policies enacted by the ‘Foreign Exchange Regulations Act’, the company left the business in India. Again in the year 1993, Coca-Cola returned to the Indian market and strengthened its market presence. Nevertheless, while performing business in India, Coca-Cola faced several business-related issues regarding product quality, resource exploitation, and market manipulation. The stakeholders of Coca-Cola have revealed concerns regarding the utilization of water resources and the company was also criticized for unethical water extraction, water pollution, and soil corrosion. Irrespective of the negative publicity of Coca-Cola, customers have been engaged in the purchase of its products because of its strong brand reputation. Most of the Indian customers, particularly young customers generally prefer to purchase soft drinks of Coca-Cola brands.

Based on this aspect, this paper describes the strategies of Coca-Cola in emerging markets such as India. The key objective of the paper is to evaluate the core strategies used by Coca-Cola to operate a business in India. Furthermore, the paper also discusses about various issues faced by Coca-Cola in the Indian market and accordingly provides recommendations for foreign investors as an investment destination.

CONCLUSION
After conducting a detailed analysis of the strategy of Coca-Cola in the Indian market, it can be observed that multiple sociocultural factors have an impact on the business practices of the company. The most distinctive aspect of the company in India has been the lack of environmentally friendly practices. Historically, the organization has been criticized by the stakeholders for engaging in unfair environmental activities and for unwanted exploitation of natural resources. The actions of Coca-Cola have created numerous problems for farmers and families due to the disruption of soils and the crisis of drinking water. The unfriendly business practices of Coca-Cola have indirectly affected the lives of individuals residing close to the production facilities1.

From the above analysis, it is clear that the cultural and economic condition of India is favorable for Coca-Cola to operate the business effectively. However, environmental issues and competitors’ performance is making the business environment challenging for Coca-Cola. Thus, proper employment of corporate social activities can be perceived to be helpful for Coca-Cola to maintain its brand image as an environmentally responsible corporate citizen. Besides, the Indian culture is also a vital aspect that needs to be considered by the company for business improvement. Coca-Cola already has a good brand name concerning product innovation and product varieties among the young consumer segment. Thus, by observing the business operations in several operational fields and by implementing appropriate policies for overcoming the challenges, Coca-Cola can make significant progress in the Indian market1.

RECOMMENDATIONS
The analysis of the business performance of Coca-Cola can provide an imperative learning experience for other foreign investors. From the performance of Coca-Cola in India, it can be stated that to grab a considerable market share and earn a substantial profit, organizations must concentrate on the welfare of communities along with other business aspects. Notably, brand reputation and brand recognition are not sufficient to operate a business in an emerging market like India. When it comes to business, the Indian approach is quite different from other developed nations.

Thus, to make progress, multinational organizations must understand the purchasing patterns and habits and also other aspects of business. Thus, it has been observed that Coca-Cola has utilized different branding and promotional strategies in India for attaining a large customer base. However, the foremost recommendations for Coca-Cola to prosper in the Indian market can be attributed to the development of positive public and government relationships, proper marketing campaigns, increased attention to customers’ requirements, adjustment of management patterns, product innovation, and maintenance of product quality.

Concerning the business performance of Coca-Cola, it is suggested that India is an attractive destination for foreign investors to conduct business. India has a growing GDP rate supported by ongoing economic liberalization and increased domestic demand for various products and services. Thus, foreign investors can have huge potential to exploit the market of India. The infrastructure of India is also favorable for foreign investors to enhance the capacity of business. Apart from that India is also rich in natural resources and energy that are required for any multinationals to run a business profitably. Read More