Pepsi vs coca in india case - Essay Example

Coke and Pepsi Learn to Compete in India Coca-Cola and PepsiCo are behemoths operating in the beverages market. Both companies have huge financial resources and adept marketing capabilities to compete successfully. As a result, there is intense competition between these two companies in all markets that they operate in. The Indian market is no exception. While there is very little to choose from between the two companies, at the end of the day, one company will emerge as the champion with higher market share and greater profitability.

The ensuing discussion highlights aspects that suggest PepsiCo has better long- term prospects for success in India.First Mover Advantage PepsiCo entered India in 1986 by forging a joint venture with Voltas and Punjab Ago. Coca-Cola reentered India in the early 1990s when the Indian government adopted the policy of liberalization, privatization and globalization. By that time, PepsiCo had already acquired 26 percent of the cola segment. Coca-Cola could not eat into the market share of existing players as the beverage market was in the growth phase.

Vast Portfolio PepsiCo has been actively strengthening its non-cola portfolio in India. The company has diversified into the lemon and orange segment of carbonated drinks and has also launched its brand of juices. PepsiCo garners one-fourth of its revenue from the non-cola segment and is well poised to capitalize on the consumers changing tastes and preferences. One the other hand, Coca-Cola’s flagship brands; Coke and Thums Up are cola drinks. PepsiCo has also launched its Aquafina brand of bottled mineral water in India.

The company has captured a significant market share in the bottled water market which is expected to grow steadily in the future. Gatorade Sports Drink The vast product array of PepsiCo also includes Gatorade, a well established international sports drink brand. The growing health consciousness amongst Indian consumers is likely to help Gatorade gain further traction in the Indian market. The emergence of sports and exercises in the daily regimen of Indian consumers bodes well for PepsiCo.Appropriate Advertising PepsiCo uses appropriate advertising and sales promotion tactics keeping in mind the Indian culture.

Sponsorship of cricket and football tournaments and celebrity endorsements has struck the right chord with PepsiCo’s target market in India.