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Copy of Copy of S. R. LUTHRA INSTITUTE OF MANAGEMENT ASSIGNMENT ON:- CASES B

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payal bansal

on 23 November 2014

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Transcript of Copy of Copy of S. R. LUTHRA INSTITUTE OF MANAGEMENT ASSIGNMENT ON:- CASES B

S. R. LUTHRA INSTITUTE OF MANAGEMENTASSIGNMENT ON:-CASES BASED ON “Coca-Cola vs. Pepsi in India: The Battle of the Bottle Continues
NAME ROLL NO.
PAYAL BANSAL 2079
PARUL TIBRA 2065
SHRUSTI NAYANI 2099
HARSH UPADHYAY 2109
PRIYANKA CHUGH 2085

ABOUT PEPSI
Carbonated soft drink
Created and developed in 1893
Renamed as Pepsi-Cola on August 28, 1898, then to Pepsi in 1961, and in select areas of North America, "Pepsi-Cola Made with Real Sugar" as of 2014.

ABOUT COCA-COLA
Carbonated soft drink sold in stores, restaurants, and vending machines throughout the world
Produced by the Coca-Cola Company of Atlanta, Georgia
Registered trademark- since March 27, 1944
Introduced in 1886

SUMMARY OF THE CASE
>Initially in 1970’s, Competitors
>In 1980’s – Advantages, returning, promotions
>Product
>Indian soft drink market
>Suppliers
>Buyers
>Entry Barriers
>Substitutes
>Competition
SUMMARY OF THE CASE
> Coca-Cola
> Pepsi-Cola


SUMMARY- COMPETITORS IN INDIA
>Company leading
>Strategies
>Grabbing opportunities
>Promotions
>Position
>Investment

Q1. Conduct an industry analysis using Porter’s five force model and identify action implications in each for Coca-Cola India.
Q2.Identify strategic questions facing Coca-Cola India.
Answer
>Is it true when we say that Coca-Cola has placed itself as an official drink?
>Was it necessary to keep the promotions of national level?
>Was the decision right of promoting its own brand and promoting less the brands taken by Parle?
>The strategy to improve the quality was more important or to have many promotional campaigns?
>Was it worth to copy all the strategies of Pepsi or they could have framed their own?

>
Action implications in each for coca-cola India
>Threat of New Entrants/Potential Competitors: Medium Pressure
>Threat of Substitute Products: Medium to High pressure
>The Bargaining Power of Buyers: Low pressure
>The Bargaining Power of Suppliers: Low pressure
>Rivalry Among Existing Firms:  High Pressure

Q3. From the profiles of Coca-Cola and Pepsi given in the case, assess the relative strengths and weaknesses of each. It may be useful to do this under different scenarios.
Answer
Strengths of COCA-COLA:-
 >One of the five best known trademarks in the world.
 >Identified as most admired trademark in the world.
 >Innovations
 >The company went high with a motto “within an arm’s reach of desire”.
 >Associated itself with Olympic.
 >Varied taglines.
 >The company got benefitted from the bottling plants

Weakness of COCA-COLA:-
 >Coca-Cola has placed itself as an official drink which didn’t worked much.
 >In the mid 1997 Coca-Cola also started on the similar grounds till then its campaigns were less aggressive.
 >Coca-Cola seemed to be like follower of Pepsi in India.
 >Decision about promotion
 >The company worked with less agencies
 >Better training was needed
 >Historical legacies
 >Issues going in the foundations

Answer
Strengths of Pepsi:-
 >It expanded its network through a franchised network of bottlers.
 >It has benefitted of offering product at low price.
 >It had number of powerful brands world-wide in its arsenal.
 >It was the first company to introduce the three litre plastic take-home bottle.
 > Good strategy
 >Grabbed consumption opportunities.
 >Adopted an aggressive campaign which targeted the youth.
 >Created many of the memorable advertisement campaigns
 >Had celebrities in it campaigns
 >Clear positioning
 >Promotions were of city or region.
 >Good network and paid salesman better
 >Good image

Weakness of Pepsi:-
 >It came to near bankruptcy a number of times.
 >Trucks used half depth crates.
 >Followed wrong strategy

Q4. Develop a set of recommendations for Coca-Cola India.
Recommendations
 >The company must follow the path of what Pepsi had adopted.
 >The official positioning in the minds of customers must be changed.
 >The company should target the right youth so that sales can be increased.
 >Salesperson must be given training.
 >The products of the Parle must be promoted and advertised.
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