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Essay / Coca-Cola in Indian Market - 742
Did you know that more than 11,000 cans of Coca Cola products are consumed every second of every day? That's more than a billion sodas per day! It's been a long time since the company was founded in 1886 and only sold an average of nine glasses a day. Yes, over a hundred years ago it sold for 5 cents a glass and was poured into a jug. The Coke brand is now as much an American icon as apple pie and baseball. Coca Cola Bottling is currently a Fortune 500 company with net income of $3.53 billion. Ironically, only 30% of their sales come from the United States, meaning the remaining 70% comes from overseas customers. With a population of one billion, according to its website, Coca Cola was reintroduced to Indian consumers on October 23, 1993. gaining only third place in the cola market. (Pepsi holds first place.) The Pepsi Company (PepsiCo) took advantage of Coca-Cola's 16-year absence to gain a strong hold on its customers. Under Wayne Calloway, who took over 15 years ago, Pepsi really gave Coca-Cola a run for its money. The battle between Coca Cola and Pepsi has been a long brewing war. Asking which one is better is like asking who is the better superhero, Superman or Batman? Will we ever know? Last year in India, in the typical "I'm going to report you" schoolyard tactic we've come to expect from these two companies, Pepsi had to call the police because Coca-Cola was "not playing not fair play.” In fact, Coke India had acquired over 5 million Pepsi bottles from recycling plants and did not want to return them. A court decision later and the two are playing nice again by agreeing to “regular exchanges”. (Kripalani and Clifford, 2003) So why didn't Coca Cola make as massive profits in India as in the United States? Many believe it's because they are still feeling the consequences of the company's poor decisions over the past fifteen years. Handicapped by an unstable market and numerous changes of management (five in fourteen years), Coca Cola had to restructure, reorganize and renegotiate the means to attract the good graces of the Indian people. (Kripalani & Clifford, 2003) To regain the upper hand, Coca Cola will need to change its focus on how it plans to convince its consumers – the four Ps..