INTERNATIONAL MARKETING

International Marketing

International Marketing

Question 1

India's political environment impacts the operations and tactics of foreign business in the country significantly. The foreign investors had viewed the Indian government as unfriendly and not much supporting. It was declared the “Principle of indigenous available” that those items which could be purchased from anywhere in the country could not be imported. Later, Coca Cola's ouster in the year 1977 was perhaps notably damaging and threatening impact on the policies of trade. The Indian laws were one of the other reasons that had played major parts in creating tough political environment for the Pepsi/Coke to counter. According to the mandates of the government, the products of Pepsi were allowed to be advertised only under the “Lehar Pepsi”. While Coca-Cola Joined Parle and strived to make their entry in the Indian markets, thus, becoming “Coca-Cola India”

Majority of these impacts would have been expected, particularly, the anticipation of the corruption within Indian government. If Coca-Cola had considered that in a much proactive manner, certain hardships that the company had to face in the past could have been avoided. It may not have easier to anticipate regarding the contamination issue. Both the companies had their own motto in an attempt to provide evidences of the safety of their products relative to the food products of the other companies. The further developments in the political arena could take place.

Question 2

It was in July 1986 that Pepsi had made its entry into the Indian beverage market in form of a joint venture that it had established with Voltas and Punjab Agro, its local partners. The “Pepsi Foods Ltd” had formed. Though the company had its presence in the Indian markets since 1985, however, it had lost its early entry advantage when it entered the market during 1986. Later, in the year 1990, Coca-Cola followed suit along with its joint venture that it had established with Britannia Industries India and its alignments with Parle, the industry leaders, which was undertaken in 1993.

Pepsi had countered various barriers to entry in the Indian markets and the most significant obstacle that it had experienced was the political / legal environment of India which had shaped up due to its history, Moreover, the government mandates was another problem that declared that the products of Pepsi would be advertised with the name “Lehar Pepsi” in the markets of India. Though the CEO of Pepsi had mentioned that they were willing to far in the Indian markets and wanted to be assured to get an entry since India was a developing market then.

The Coca Cola reentered the Indian markets during May 1990 with the help of a planned joint venture with the local bottling. The Indian legal/political environment proved to be the primary barrier for the entry of Coca Cola in India. The application was turned down by the government; however, later Coca-Cola had its way back to India by aligning and making agreements with Britannia Industries India Ltd.under a new venture known as “Briton ...