Budget and Budgeting Techniques Essay

answer- 1 Answer- 1 India was a closed economy in the beginning. Policy banning imports. The rest of Indias Government in 1991. New Industrial Policy. Strict policies regarding the debut of foreign brands. Trade rules & regulations simplified. Foreign investment increased. Pepsi enters in 1986. Coca-Cola follows in 1993. Contd steal 14 Unlawful to trade under their Western name in India Pepsi became Lehar Pepsi. Coca-Cola merged with Parle and became Coca-Cola India. Different Laws for Pepsi and reverse Coca-Cola tot upd to sell off 49% of its stock as a condition of entering and buying let on an Indian company. Pepsi entered earlier, and was not subject to this. Contd coast 15 India forced blast to sell 49% of its equity to Indian investors in 2002. snowf any asked for a second extension that would delay it until 2007 which was denied. Pepsi was held to this since they entered India in a different year. blow asked the Foreign investment funds Promotion Board to block the votes of the Indian shareholders who would cook 49% of ascorbic acid. Change in oversight of the FIPB Past lobbying efforts made useless. Contd Slide 16 Could these problems have been forecasted prior to market entry? Probably not Inconsistent, and changing presidential term. How could these developments in the policy-making arena have been handled differently? speed of light could of agreed to start freshly bottling final causets instead of buying out Parle, and thereof wouldnt of had to agree to sell 49% of their equity.Answer-2 Answer-2Coca-Colas Pros & Cons of Timing of launching in the Indian Market Coca-Colas P ros & Cons of Timing of entre in the Indian Market Benefits Parle offered its bottling plants in 4 major cities. make 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 carbonate drinks is as very low. Harder to establish themselves.Pepsis Pro s & Cons of Timing of Entry in the Indian Market Pepsis Pros &Cons of Timing of Entry in the Indian Market Benefits Own set up green filled bottling plants. expediency of coming before Coca Cola. Government policies favored the company. Joint conjecture with Voltas and Punjab Agro. Gained 26% share by 1993. Disadvantages Pepsi approached Parle but it was rejected. Launched 7up and there is pixilated 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 enormity of India in foothold of it population and geography. Conti ..Cont.. Cont.. Product Policies Catering to Indian tastes Entering with products close to those already available in India such as colas, fruit drinks, carbonated pees Waiting to introduce American type drinks Coca-Cola introducing Sprite recently Introducing new products Bottled water Conti ..Cont.. Cont.. Promotional Activities Both advertise a nd use promotional square at Navratri . Pepsi gives away premium rice and candy with Pepsi Coca-Cola offers waive passes, snow 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 uncouth areasCont Cont Pricing Policies Pepsi started out with an aggressive pricing policy to try to channel immediate market share from Indian competitors Coca-Cola cut its prices by 15-25% in 2003 Attempt to encourage consumption to try to compete 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 Glocalization Strategies Answer-4 Coke and Pepsis Glocalization Strategies What is Glocalization ? Global + Localization = Glocalization By victorious a product global, a firm will have more than suc cess if they adapt it specifically to the location and culture that they are nerve-racking to market it in. Both companies have successfully implemented glocalizationPepsis Glocalization Pepsis Glocalization Pepsi forms joint danger when first entering India with two 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 creationizing is done during the cultural festival of Navrtri , a traditional festival held in the town of Gujarat which lasts for nine days. Pepsis most effective glocalization strategy has been sponsoring field famous Indian athletes, such as cricket and soccer players.Coca-Colas Glocalization Coca-Colas Glocalization First joined forces with the local snack food manufacturing business Britannia Indust ries 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 western India.Coca-Colas Glocalization Coca-Colas Glocalization Coca-Cola likewise hired several famous Bollywood actors to endorse 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 falselyly forecasted Indian political environment due to which they had to dilute their stakes later (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 in the manufacturing of their products by the use of canal irrigati on & rainwater harvesting. Then they can also 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 backdrop 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 health to convey the message to the universe 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 directly because their company was not wrong and they should justify themselves.Answer-7 Pepsi Better marketing and advertising strategies Widely accepted More preferable More market share Less Political conflicts Coke Government conflicts Trailing Pepsi in market share Pepsi will deal better in the long run Answer-7Answer-8 Pepsis L essons Learned Answer-8 Pepsis Lessons Learned Beneficial to keep with local tastes Beneficial to pay charge to market trends Celebrity appeal makes for exceptional 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 business relationship with the government Investment in quality products Advertising is crucial