Essay on Coke and Pepsi: from Global to Indian Advertising

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Pages: 13

Coca-Cola and Pepsi-Cola vied for a “throat share” of the soft drinks market for more than a century. Carbonated soft drinks (CSD) contributed to majority of the revenues in soft drinks. 丁he core market was Ihc United States which had high per capita consumption (see Exhibit 1 for per capita consumption of carbonates in select countries). The Americas accounted for 54% of the global CSD market. Europe for 34.5%, and Asia-Pacific for 1 \%.] The industry was characterized by the presence of strong brands - with three brands ㅡ Coca-Cola, Pepsi, and Sprite ranked 1, 23,and 61 globally and valued1 $70 billion. $14 billion, and S5.8 billion, respectively by Interbrand a leading brand valuation and consultancy firm.2 Advertising had played a
In 2009,Coca-Cola held 42% market share of the global CSD market.10 Its four brands - Coca-Cola, Diet Coke,Fanta, and Sprite ranked among the top five global CSD brands by sales volume (Exhibit 4). In 2010,Coca-Cola had revenues of $31 billion and net incomc of S6.8 billion (see Exhibit 5 for financial performance of Coca-Cola and PepsiCo).

Coca-Cola in India

Coca-Cola had entered the Indian market in 1970 and was the market leader until 1977 when it exited the country following changes in the government policies. Over the next few years,Parle emerged as a strong local player with a host of popular brands 一 Thums Up, Gold Spot, and Limca. Coca-Cola reentered India in 1993 and bought Parle that gave it ownership of Parle's top brands,bottling network, and consumer franchise. International brands from its global portfolio ㅡ Coca-Cola, Diet Coke, Sprite, and Fanta were launched in India. On re-entering, Coca-Cola faced the challenge of managing the outdated bottling plants of Parle. Moreover,its single-minded