Coca-Cola India in 2003
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Case Details:
Case Code : BSTA073
Case Length : 12 Pages
Period : 2003
Organization : Coca-Cola
Pub Date : 2003
Teaching Note :Not Available
Countries : India
Industry : Beverages
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Introduction
In 2003, the Indian subsidiary of the Coca-Cola Company was awarded the Robert W. Woodruff Award1 for outstanding business performance. Coca-Cola's turnaround in India had come after a period of heavy investments.
During the period 1993-2002, the company had invested $1 billion in India. In 2003, Coca-Cola had 17 manufacturing units, 60 distribution centers catering to 5,000 distributors and one million retail outlets, serviced via trucks and three-wheelers. Coca-Cola2 directly employed 10,000 people.
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Background Note
Coca-Cola's reentry into India was driven by both competitive factors and Coca-Cola's own global plans. Pepsi had entered India in 1990 and by 1993 had garnered a 25% market share. Coca-Cola could not stay behind. Moreover, the parent company had realised the need to expand its presence in emerging markets as growth was tapering off in developed countries. In late 1993, to make a quick entry into the market and neutralize Pepsi's early mover advantage, Coca-Cola decided to buy out a local soft drink company, Parle, which had a 60% market share.
But Coca-Cola found itself facing several problems. It focused on establishing the Coke brand quickly, positioning it as an international brand and not emphasizing local association. Neglect of Parle brands led to their decline in market share...
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