Coke and Pepsi Learn to Compete in India

Presented By Prakash Bhatt C 42 Rohit Bisht C 44 Bicky Shah C 47 Lov Mittal C 51 Pradeep Jose C 52 Q4. Global localization (glocalization) is a policy that both companies have implemented successfully. Give examples for each company from the case. A4. Glocalization: A combination of the words globalization' and localization' used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market. Both Coke and Pepsi successfully created brands/flavors specific to India The concept of glocalization plays a very important role in making or breaking of the brand in India. It is very clearly shown in the promotional campaigns of both PepsiCo and Coca-cola in India. Pepsi Co formed joint venture when entering with two local partners, Voltas and Punjab Agro, forming Pepsi Foods Ltd. PepsiCos strategy to promote their main brand under the name Lehar Pepsi (Lehar meaning wave in Hindi) worked very well in connecting with the Hindi speaking people in India. Although the new brand name was required by the Indian government, PepsiCo continued with it even after such requirements were removed. The effect of glocalization can be seen in all promotions. Apart from summer sales the second highest sales period is during the festival of Navratri (nav means nine and ratri means nights), which is mainly in the west part of India. This is a traditional Gujarati festival that goes on for nine nights while people dance and have fun. PepsiCo also came up with several offers during the Garba (dance) festival. For example a refill of 300ml fetches one kilo (close to 2.2 pounds) of premium quality rice. PepsiCo also tied up with other companies for various promotional offers. For example free Kit-Kats were given away with every 1.5 liter bottle or a pack of Polo (hard mint candies) with each 500ml bottle of Pepsi and Mirinda. Pepsi is one of the biggest sponsors of cricket tournaments around the world in order to build awareness and preference among target consumers. Its most effective glocalization strategy has been sponsoring world famous Indian cricketers Coca-Colas strategy of think local act local is prominently seen in its campaigns for the Navratri festival. The Thums Up Toofani Ramjhat message is synonymous with having fun while dancing. A lot of on-site promotional activities take place simultaneously, like offering exotic trips with the purchase of a bottle of Coke. The soft drinks slugfest has taken another interesting turn, with both Coca-Cola India and PepsiCo claiming better recall and higher ratings for their respective `ads of the season'. While PepsiCo's biggest ad in 2003 featured Amitabh Bachchan (a very powerful celebrity) and Sachin Tendulkar's (a popular cricket star) flying kites. Coca-Cola's most popular commercial for Summer 2002 was Aamir Khan's (a film star) `thanda matlab Coca-Cola' act in a pedestrian Mumbai restaurant. The first ad execution, called Bombay Dreams with A.R. Rahman (a famous music director), was so successful among the young target audience that it increased the sales by 50% for Coca Cola.