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STRATEGIC MARKETING

Group Presentation
Overview of Indian Market- Past
In the year 1991, the Indian Government adopted Economic Liberalization
Policy
Cold Drinks as popularly known in India were an Urban phenomenon
and the favorites (soda based) were Campa Cola, Gold Spot, Limca and
Thums Up
Pepsi entered in the Indian Market as Pepsi Foods Ltd. and was known as
Lehar Pepsi
Coke tried to reenter* in 1990 by merging with Godrej but was denied;
merged with Britannia Industries India Ltd.
July 1993 Parle sold its brands and plants to Coke

*Coke was present in India from 1970s, but was banned in 1977 under FERA
Overview of Indian Market- Present
Today the Indian Market for Carbonated Drinks is worth more than
Rs.17000 crore
The present scenario of the carbonated drinks market is duopoly*
situation.
Although in every place there are local competitors and there is a huge
unorganized flavored water market.
As far as the carbonated drinks are concerned there are only two brands
(as per the Market Share).
Coke (57.8%)
Pepsi (35.6%)

*A duopoly is a competitive situation where there are two competitors, normally of
roughly equal size.



Coca-Cola
BACKGROUND
Coca- Cola Milestones
1886: Founded by John Pemberton
1887: Registered as trademark.
1895: Sold in every state & territory in US.
2003: Headquartered in Atlanta with divisions & local operations in over
200 countries worldwide. 70% income outside US.
1970s: Entered Indian Market for the 1
st
time
1977: Exited the Indian Market
1993: Re-entry in India
1993-2003 : Invested more than US $1b in India- top international
investor.
2003-2008: No. 1 soft drink company in India.




Coca- Cola Products in India
Coke
Diet Coke
Thums Up
Sprite
Limca
Maaza
Fanta
Georgia (Coffee)
Kinley (Drinking Water)
PepsiCo.
BACKGROUND
Pepsi Co. Milestones
1899: Founded by Caleb Bradham
1902: Applied for trademark in US
1923: Declared bankrupt & assets sold
1985: Gained entry in India
1988* - Succeeded with Pepsi Food India Limited Project as a joint
venture of Punjab Agro Industrial corporation & Voltas India Limited.
1991: Marketed & sold as Lehar Pepsi.
1994: Bought out its partner and become a fully owned subsidiary.
Today it is the No. 2 soft drink company in India.

*In 1988, forced to withdraw from market due to carcinogenic ingredient (BVO)

Coca- Cola Products in India
Pepsi
Diet Pepsi
7 Up
Miranda
Mountain Dew
Tropicana Juices
Lays, Cheetos & Ruffles (Snacks)
Quaker Oats
Aquafina (Drinking Water)


Battle between two giants
RIVALRY
FEATURES: COKE PEPSI
Bar weight 10 FL OZ ( 200ml) 10 FL OZ ( 200ml)
Calories 121.25 150
Carbohydrates (gm) 33.75 34.5
Flavors (numbers) 2 2
Price/bottle Rs 10 Rs 10
PRODUCT CLAIMS All foods and beverage can fit into healthy
balanced diet when consumed in appropriate
proportion.
Offers beverages that resorts to the
customers expectations and make it more
enjoyable for them to lead healthier lives.
TARGET CONSUMER Children, adults, younger generation and
sports personality and celebrities
People from younger generation, sports
personalities and celebrities
DISTRIBUTION Grocery stores, retail stores, shops, malls, etc. Grocery stores, retail malls, shops etc.
BRAND POSITIONING Sweetened carbonated drink Sweetened carbonated drink.
Competitor Capabilities Matrix
Differential Competitor Analysis
COKE PEPSI
PARENT COMPANY Coca Cola Company Pepsi Co
TOTAL SALES 450 million ( globally) 324.58 million (globally)
PRODUCTS Coca Cola , Diet Coke Pepsi, Diet Pepsi
MANAGEMENT Atul Singh (CEO) Indra K Nooyi (CEO)
LATEST PRODUCT None None
DISTRIBUTION Through retail malls, grocery shops , organized
and unorganized retails
Through retail malls, grocery shops, organized and unor
SPONSORSHIP Various events such as cricket matches, movies,
trade faires, college fests etc.
Sports events, trade faires,college fests etc.
PRODUCTION Company produces syrup concentrate which it
sells to bottlers through out the world
Contains carbonated water,high fructose corn
syrup,sugar, colorings, phosphoric acid, caffeine, citric
acid and natural flavours
FOUNDER Originated in 1886 in US by Dr.John S Pemberton Originated in North Carolilna by a young pharmacist
New Bern
MARKET SHARE 57.8% 35.6%
BRAND AMBASSADOR Imran Khan, Sachin Tendulakar Mahendra Singh Dhoni, Ranbeer Kapoor
NUMBER OF BOTTLING PLANTS 26( company owned), 14 (franchise owned) 15( company owned), 28( franchise owned)
Product
Product Type Coca-Cola Pepsi Co.
Carbonated Drinks (Black) Coke, Thums Up Pepsi
Carbonated Drink (Black) Diet Diet Coke Diet Pepsi
Carbonated Drinks (Orange) Fanta Miranda
Carbonated Drinks (Clear/ Lemon) Sprite, Limca 7 Up, Mountain Dew
Flavored Juice Maaza Tropicana
Coffee Georgia ***
Drinking Water Kinley Aquafina
Snacks *** Lays, Cheetos & Ruffles
Breakfast *** Quaker Oats
Place
Place
Both Pepsi and Coke follow the Hub and Spoke model of distribution in
rural India.

HUB
Spoke
Village
Village
Village
Spoke
Village
Village
Village
Rural
Place
Coke
Sales & Distribution is handled
by a large number of bottlers.
26 bottling plants
60 distribution centres
20 contract packers
Over 70000 retail outlets
serviced via trucks, converted
three wheelers, tricycles & push
carts.
300 million soft drink consumers

Pepsi Co.
Pioneer in use of Vending
Machines and Restaurant,
Departmental Stores
Built up distribution network &
bought out a lot of Bottlers
Production plants and bottling
centers were strategically placed
in large cities all around India
Focusing on the rural
PepsiCo has 37 bottling plants in
India, including 17 company-
owned plants and 20 owned by
franchisee partners

Price
Coke
Earlier COST BASED Pricing.
The Rs. 5 (200 ml) and Rs. 8 (300
ml) marketing revolution
Coke spends more on
advertising than manufacturing
Pepsi Co.
Competition based
Very flexible to come down with
the price very quickly
Promotion
Coke
Brand Localization Strategy: The
Two Indias
India A: Life ho to aisi
India B: Thanda Matlab Coca-
Cola
Small bottle scheme

Pepsi Co.
Pepsi balance 2 influences in the
minds of the customers:
Youre cool the way you are
Dont try to be any different
It was positioned as the new
cool youth icon
Nothing Official About It
Yeh Dil Maange More
Mera Number Kab Ayega?
Yeh Pyaas Hai Badi
Youngistan
Change the game

Promotion
Coke Pepsi Co.
SWOT Analysis: Coke
STRENGTHS
Well established Global Brand
Prior knowledge of Indian market
(1958-1977)
Tie up with local players (Britannia
Ltd)
Strong Fiscals to acquire local business
(bottling plants/local brands)
WEAKNESS

Improper appreciation of existing
Indian Laws at entry time (in case of
acquisition, 49% sale of equity to local
partners mandatory)

OPPORTUNITIES
Many successful brands to pursue
Advertise its less popular products
Buy out competition.
More Brand recognition
THREATS
Strong Competition from Pepsi and
other local brands due to late entry
Stricter legal framework (49% equity
to Indian Investors)
Decreasing popularity of carbonated
drinks in India

SWOT Analysis: Pepsi Co.
STRENGTHS
International Brand and Global
Experience
Benefitted by learning from Coca
Cola mistakes in India pre 1977
Willingness to comply with
stringent Indian Laws
WEAKNESS
Lack of Experience in Indian market

OPPURTUNITIES
Food division should expand
Noncarbonated drinks are the
fastest-growing part of the industry
There are increasing trend toward
healthy foods
Focus on most important customer
trend - "Convenience".
THREATS
Unfriendly political environment
and Indian legal framework
Competition from local
manufacturers
Low demand in Indian market for
carbonated drinks
Poor infrastructure especially in
rural India
Consumer Segmentation
Behavioral
Benefits sought: Thirst quencher; status symbol
Purchase Occasion: Parties and other get-togethers
Purchase Behavior: Instinctive/ Planned
Usage: Light, occasional
Perceptions and beliefs: Safe and stylish; preferred cola
drink
Psychographics
Lifestyle: Trendy; Sophisticates
Personality: Cool; Youthful
Profile
Demographic: Urban, Rural
Socio Economic: Young affluent Indians
Geographic: Urban & Rural India
Segmenting Consumer Markets for Pepsi &
Coke
Model for Brand Equity for Pepsi & Coke
Advertising:
TV: Yougistan with MTV
TV: MTV Coke Studio
Billboards
Posters
Radio
Sales Promotion:
Scratch cards
Lucky Draws
Buy1, get 1 free
Change to smaller
packaging
Event Experience:
Musical Concert Shows
Sponsorship Sports events
Tying up with TV Soaps
Word of Mouth Marketing:
No Systematic effort to
generate word of mouth
marketing
Digital Marketing:
High Impact through digital
and social Media marketing
PR & Publicity:
Bollywood, cricket brand
ambassador
Sponsorship of Indian
cricket team and world cup
Marketing
Communication
Programs
Brand
Equity
Brand Image:
Youthful
Cool
Rebellious
Refreshing
Brand Awareness:
Exists across market
High awareness in urban
areas in comparison to rural
areas
Brand Relationship:
Very low Brand Loyalty
Subject to availability and
price
Brand Equity for coke!
The most recognized word on the planet after
OK!
Advertising Campaign
Coke was the official
partner for 1996 world cup!
Coke used to advertise its
brand as an official partner
and then.
More Youth Centric
More Emotional
Product Mix- BCG Matrix Pepsi Co.
Stars:
Pepsi
Mountain Dew
Tropicana Juices
Question Mark:
Diet Pepsi
Miranda
7 Up
Nimbooz
Cash Cow:
Aquafina
Dogs:
Pepsi Max

Relative Market Share
M
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Product Mix- BCG Matrix - Coke
Stars:
Coke
Sprite
Diet Coke

Question Mark:
Fanta
Georgia
Minute Maid
Cash Cow:
Thumps up
Limca
Maaza
Kinley
Dogs:

Relative Market Share
M
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G
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H
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Ansoff model for Coke
Product Development:
Cold Drinks as popularly known in
India were an Urban phenomenon and
the favorites (soda based) were
Campa Cola, Gold Spot, Limca and
Thums Up
July 1993 Parle sold its brands and
plants to Coke
Market penetration/ Expansion:
Family sized bottle
Pet Bottles
Small Quantity at low price for rural
market
Market Development:
Diet Coke - result of a growing trend
towards dieting and healthier living
Vanilla Coke - an alternative to Coke
Fanta Icy Lemon
Diversification:
Coca Cola developed the energy drink
Powerade in response to growth in
the sports drink market.
Georgia (Coffee)

Products
M
a
r
k
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E
N
E N
Ansoff model for Pepsi
Product Development:
Pepsi Entered into an existing cola
market competing with local brands
and coke Existent Cash cow
Market penetration/ Expansion:
Diet Pepsi Entered into an existing
market created by Diet coke Existent
Dog
Market Development:
Pepsi blue Seasonal product that
took advantage of cricket world
cup fever not produced anymore
Follower

Diversification:
Pepsi Max Advertised through digital
media
Pepsi Caffechino Pepsis attempt to
create a niche market for cola + Coffee
Taste - Unsuccessful


Products
M
a
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E
N
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Pepsi & Coke: Three Levels of a Product
Freezers to ensure cold products, Free Branding
for small outlets, Water bottles, Indian cricket
team, Celebrities, Merchandise
Non Alcoholic Cold Drinks, Thirst Quencher,
Modern & Inspirational
Sweet Carbonated cola
Size: 200ml, 300ml, 500ml, 1.5 ltr, 2ltr.
Glass bottles, Cans, Pet bottles
Blue, Red, White
Low
High
Ability to
standardized
Product
element
Support
Service
Product
Attributes
Core Product
Benefits
Current and Future Strategies
COKE PEPSI
OBJECTIVES To refresh the world.
To inspire moments of optimism and
happiness.
To create value and make a
difference.
To be the worlds premier consumer
products company focused on
convenient foods and beverages.
CURRENT
STRATEGIES
Product innovation and huge
spending on advertisement, cross
training of mangers.
More risk taking ability, rapid action
with respect to changing market
condition, finding new opportunities
for new market.
FUTURE STRATEGIES Extensive spending on market
research in order to determine the
tastes and preferences of the
customers, CSR, product innovation,
adoption of green revolution,
product line extensions.
Product line extensions, CSR, Brand
extensions, product innovations, sound
R&D department to develop products
as per the tastes and preferences of
the customers.
Giants Fight to get maximum share
Conclusion

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