Pepsi India Case Study

The case study of Pepsi vs coke in India has become the memorable history in business battel field when the politic environment make a critical impact to company performance for both PepsiCo and Coco-Cola India. The story begin with aspects were adjustments in the Indian government like new procedures set of laws and a closed system, change in the names of each company Lehar Pepsi & Coca Cola India, problems with the water contamination, the policies that excluded international companies, boycotts of American goods, low demand for carbonated drinks, prohibition of imports . Some of these effects may have been anticipated, especially foreseeing the corruption within Indian government. Indian government viewed as unfriendly to foreign investors.

It is very clearly shown in the promotional campaigns of both PepsiCo and Coca Cola in India. In this case, the Pepsi’s Glocalization is forms joint venture on first entering India with two local partners, Voltas and Punjab Agro, forming Pepsi Foods Ltd. In year 1990, PepsiCo then proceed to their strategy by change and promote their main brand under the name “Lehar Pepsi”. The words “Lehar” is a Hindi language which is mean a ‘wave’. PepsiCo worked very well in connecting with the Hindi speaking people in India. In advance, this name helped them to integrate further with the Indian culture to conform the foreign collaboration rules and to the government regulations. Hence, PepsiCo is updated with the environment in the changing trend in India, where they can use this information to strength the strategy. In this case, Pepsi launched its Lehar 7UP in the clear lemon category to “keep the local taste”. In addition, Pepsi’s most effective Glocalization strategy is by sponsored most famous game in India which known as “Cricket” and other sporting tournaments such as soccer. While sponsoring PepsiCo take the advantage by organized campaigns to tie in with important sporting events such as the “keep it cool” 7UP Summer Campaign which coincided with India and Zimbabwe One Day Cricket Series. To consolidate its investment in its promotional campaigns, PepsiCo sponsored a music video with celebrity endorsers including the Bollywood stars. During the year of 2000, PepsiCo is teamed up with Guarjarati TV to telecast the festival throughout the 9 nights and PepsiCo also made use of the Navrartri Festival by creating promotional