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CASE STUDY OF The Coke and Pepsi. Presented by: GULAB SHARMA ABHISEK,VISHAL,ANKESH,ANKIT,NIMISH,TEKWANI,SANJAY,RAHUL. Indian Cola Market. Coke had entered in 1970s but exit due to Govt. policies. Pepsi entered in 1991.
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CASE STUDY OFThe Coke and Pepsi Presented by: GULAB SHARMA ABHISEK,VISHAL,ANKESH,ANKIT,NIMISH,TEKWANI,SANJAY,RAHUL
Indian Cola Market • Coke had entered in 1970s but exit due to Govt. policies. • Pepsi entered in 1991. • Coke re-entered in 1993-merged with Parle which has 60% market share(with thumps up,limka like brand). • Pepsi leads because it targeted Youth
Advertising strategies • Both formulated their advertising plan on the basis of insiders they put inside the offices of each other. • INITIALLY- - PEPSI relied on advertisements featuring film stars, pop stars and cricket players. -COKE focused on Indian culture and music.
Spoof Advertising • Against Coke’s ‘EAT-SLEEP-DRINK’, Pepsi made an ad opposite to it • To counter this, Coke made a print ad in which it shows ‘chalo kha liya’..
Another Coke ad showed 2 apes, copying Pepsi’s Azhar and Jadeja with the time ‘ don’t be a bunder’, taste the thunder.
Coke launched Sprite and made an ad ‘baki all bakwaas’ which clearly targeted Pepsi.
Against Pepsi’s ‘ Sachin ala re’, Coke responded with the song ‘Coke ala re’. Pepsi moved to AAAI against Coke. Coke aala re Sachin aala re
Cola wars apart from Advertising • Espionage in each other’s offices. • Pepsi filed a petition against Coke alleging that Coke had ‘entered into conspiracy’ to disrupt its business operations. • Recruiting of employees at higher rates by Coke. • ‘Pressure of breaking contracts’ by Coke. • Frequent complaints from both the players about their bottlers and retailers being hijacked. • Painting of rival outlets overnight.
Future of Cola wars • Companies will concentrate more on Advertising. • Events and exhibitions will be on high. • Companies would take unethical steps in future. • Pricing strategies will be reconsidered. • Companies may widen their portfolio to capture mass market.
Other fronts of Rivalry • Till the late 1980s, the standard SKU for soft drink was 200 ml. • Around 1989, Pepsi launched 250 ml bottles • When Coke re-entered India in 1993, it introduced 300 ml as the smallest bottle size. • Soon Pepsi followed this. • But around 1996, the excise component led to an increase in prices & a single 300 ml purchase became expensive.
Ethical issues • Espionage against each other’s offices. • Making fun of cricketers by Coke. • Coke used punchline of Pepsi ‘yeh dil maange more’. • Shiftment of employees from Pepsi to Coke. • Hijacking bottlers and retailers. • Painting of retail outlets of each other’s overnight.