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From Global to Indian Advertisement

Presented By : MAHESH JAGDALE DIV : FYMMS BATCH : B ROLL NO : 13115B0034

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.

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 1st 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)

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)

Pepsi Products in India

Pepsi Diet Pepsi 7 Up Miranda Mountain Dew Tropicana Juices Lays, Cheetos & Ruffles (Snacks) Quaker Oats Aquafina (Drinking Water)

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

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 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". WEAKNESS Lack of Experience in Indian market

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

Segmenting Consumer Markets for Pepsi & Coke

Benefits sought: Thirst quencher; status symbol Purchase Occasion: Parties and other get-togethers Behavioral Purchase Behavior: Instinctive/ Planned Usage: Light, occasional Perceptions and beliefs: Safe and stylish; preferred cola drink Consumer Segmentation Psychographics Personality: Cool; Youthful Demographic: Urban, Rural Profile Socio Economic: Young affluent Indians Geographic: Urban & Rural India Lifestyle: Trendy; Sophisticates

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

THANK YOU