Budget and Budgeting Techniques Essay

Answer- 1 Answer- 1 India was a closed providence in the beginning. Policy banning imports. The Liberalization of Indias Government in 1991. New Industrial Policy. Strict policies regarding the en sieve of foreign brands. Trade rules & adenylic acid regulations simplified. Foreign investment increased. Pepsi enters in 1986. Coca-Cola follows in 1993. Contd Slide 14 vile to commercialise under their Western name in India Pepsi became Lehar Pepsi. Coca-Cola merged with Parle and became Coca-Cola India. antithetical Laws for Pepsi and Coke Coca-Cola conditiond to sell off 49% of its stock as a condition of entering and buying out an Indian company. Pepsi entered earlier, and was non subject to this. Contd Slide 15 India forced Coke to sell 49% of its equity to Indian investors in 2002. Coke asked for a second reference point that would delay it until 2007 which was denied. Pepsi was held to this since they entered India in a variant year. Coke asked the Foreign enthronement Pro motion Board to block the votes of the Indian appropriateholders who would control 49% of Coke. convince in oversight of the FIPB Past lobbying efforts made employmentless. Contd Slide 16 Could these problems direct been forecasted prior to market entry? Probably not Inconsistent, and changing government. How could these developments in the political arena have been handled differently? Coke could of agreed to pull up stakes new bottling sets instead of buying out Parle, and thus wouldnt of had to agree to sell 49% of their equity.Answer-2 Answer-2Coca-Colas Pros & Cons of Timing of instauration in the Indian Market Coca-Colas P ros & Cons of Timing of opening in the Indian Market Benefits Parle offered its bottling plants in 4 major cities. do its return to India with Britannia Industries India Ltd. Disadvantages Rigid Rules and Regulations. Buying of bottling plants leads to 49% disinvestment. Local demand of change drinks is as very low. Harder to establish themse lves.Pepsis Pros & Cons of Timing of penetration in the Indian Market Pepsis Pros & Cons of Timing of Entry in the Indian Market Benefits Own set up gullible filled bottling plants. Advantage of coming before Coca Cola. Government policies prosperous the company. Joint venture with Voltas and Punjab Agro. Gained 26% share by 1993. Disadvantages Pepsi approached Parle hardly it was rejected. Launched 7up and there is stiff competition in the market for lemon drinks.Answer-3 Responses to Indias Enormity Answer-3 Responses to Indias Enormity Pepsi and coca-cola responded in many ways to the exorbitance of India in terms of it population and geography. Conti ..Cont.. Cont.. Product Policies Catering to Indian tastes enter with products close to those already available in India such as colas, return drinks, carbonated wets Waiting to introduce American type drinks Coca-Cola introducing pansy recently Introducing new products Bottled pee Conti ..Cont.. Cont.. Promoti onal Activities Both advertise and use promotional material at Navratri . Pepsi gives away premium rice and dulcorate with Pepsi Coca-Cola offers sinless passes, Coke giveaways as well as vacations Use of different campaigns for different areas of India India A campaigns try to appeal to young urbanites India B campaigns try to appeal to rural areasCont Cont Pricing Policies Pepsi started out with an aggressive pricing polity to try to reap immediate market share from Indian competitors Coca-Cola faded its prices by 15-25% in 2003 Attempt to encourage consumption to try to struggle with Pepsi and gain market shareContd .. Contd .. Distribution Arrangements Production plants and bottling centers placed in large cities all around India More added as demand grew and as new products were addedAnswer-4 Coke and Pepsis G topical anaestheticization Strategies Answer-4 Coke and Pepsis Glocalization Strategies What is Glocalization ? Global + localisation = Glocalization By taking a product global, a firm volition have more success if they adapt it unique(predicate)ally to the location and acculturation that they are trying to market it in. Both companies have successfully implemented glocalizationPepsis Glocalization Pepsis Glocalization Pepsi forms joint venture when first entering India with devil local partners, Voltas and Punjab Agro, forming Pepsi Foods Ltd . In 1990, Pepsi Foods Ltd. changed the name of their product to Lehar Pepsi to conform with foreign collaboration rules . In keeping with local tastes, Pepsi launched its Lehar 7UP in the clear lemon category.Pepsis Glocalization Pepsis Glocalization Advertising is done during the cultural festival of Navrtri , a traditionalistic festival held in the town of Gujarat which lasts for nine days. Pepsis most telling glocalization strategy has been sponsoring world famous Indian athletes, such as cricket and soccer players.Coca-Colas Glocalization Coca-Colas Glocalization First joined forces w ith the local bite food producer Britannia Industries India Ltd. in the early 90s. Formed a joint venture with the market leader Parle in 1993. For the festival of Navratri , Coca-Cola issued free passes to the celebration in each of its Thumps Up bottles. Also ran special promotions where people could win free vacations to Goa, a resort state in westerly India.Coca-Colas Glocalization Coca-Colas Glocalization Coca-Cola to a fault hired several famous Bollywood actors to hold up their products. Who could forgetAnswer-5 Answer-5 Yes, we agree that Coca-Cola India made mistakes in planning and managing its return to India. They falsely forecasted Indian political environment due to which they had to dilute their stakes later(prenominal) (49% disinvestment). They rejected the plan to put up green fields bottling plants as they took over Parles existing bottling plants. Coca cola tried to get extensions twice.Answer -6 Answer -6 Pepsi and Coke can confront the issue of water use i n the manufacturing of their products by the use of canal irrigation & rainwater harvesting. Then they can likewise put water recycling plant to treat the discharged water from their factories and then they can provide that water to farmers for their agricultural use. This way the ground water problem can also be solved and managed.Cont.. Cont.. Coke can further defuse boycotts or demonstrations against their products in California by doing Ad-campaigns in which they can ask the experts from the ministry of wellness to convey the message to the public that their products are safe and healthy. They can also hire celebrities to do the Ads for their products because the public follows them. Coke should address the group without delay because their company was not wrong and they should justify themselves.Answer-7 Pepsi Better marketing and advertise strategies Widely accepted More preferable More market share Less Political conflicts Coke Government conflicts Trailing Pepsi in ma rket share Pepsi will fare better in the long turn tail Answer-7Answer-8 Pepsis Lessons Learned Answer-8 Pepsis Lessons Learned Beneficial to keep with local tastes Beneficial to pay attention to market trends Celebrity appeal makes for especial(a) advertising It pays to keep up with emerging trends in the marketCoca-Colas Lessons Learned Coca-Colas Lessons Learned Pay specific attention to deals made with the government Establish a good calling relationship with the government Investment in quality products Advertising is all important(p)