RITESH(09) SURESH KAPOOR(10) JASLEEN(27)

MOHIT KATHURIA(22) SAMEET(32) KISHOR SINGH(35)

History of Coca-Cola

Coca-Cola

was

formulated

in

may

8,1886

by

pharmacist John Pemperton.

Coca-Cola was sold in bottles for the first time on

March 12, 1894.

The first outdoor wall advertisement was painted in the

same year as well in Cartersville, Georgia .

Today-300 Brands - 200 Nations

HISTORY OF PEPSI
Pepsi was created in 1898 in North Carolina United States

by Pharmacist Caleb Bradham.

In 1905 Pepsi received its first logo redesign since the

original design of 1905 and in 1929,the logo was changed again.

Pepsi struggled and declared bankruptcy twice in 1931 due

to world war.
On three separate occasions b/w 1922 1933 , the coca

Marketing strategies of COKE and PEPSI

A) Product
B) Price

C) Place
D) Promotion

STRENGTHS
COKE
Coke Brands Enjoy a

PEPSI
PepsiCo Brands Enjoy

High-Profile Global Presence Four of the top five leading brands Broad-based bottling strategy 47% of global volume sales in carbonates

a High- Profile Global Presence Pepsi Owns the Worlds 2nd Best-Selling Soft Drinks Brand Constant Product Innovation Aggressive Marketing Strategies Using Famous Celebrities

Brands of COCA COLA:

Products of PEPSI

COKE AND PEPSI

COKE
5 Lakh Outlets Tied up with Indian Oil

PEPSI
3.5 Lakh Outlets Tied up with Bharat Petroleum

Tied up with M TV for POP concerts

Tied up with V TV

12 volume-building, national-level consumer promotions Faulty Service in rush to beat PEPSI Mobile vans concept launched in 1998

8 volume-building, national-level consumer promotions Better service than COKE Prizes, Tattoos, Toys under the crown

COKE in INDIA
Coca-Cola was the leading soft drink brand in India

until 1977 when it left rather than reveal its formula to the government and reduce its equity stake as required under the Foreign Exchange Regulation Act (FERA) which governed the operations of foreign companies in India. After a 16-year absence, Coca-Cola returned to India in 1993, cementing its presence with a deal that gave Coca-Cola ownership of the nation's top soft-drink brands and bottling network. Cokes acquisition of local popular Indian brands including Thums Up (the most trusted brand in India21), Limca, Maaza, Citra and Gold Spot provided not only physical manufacturing, bottling, and distribution assets but also strong consumer preference.

 Coca-Cola India produced its beverages with

7,000 local employees at its 27 wholly-owned bottling operations supplemented by 17 franchisee-owned bottling operations and a network of 29 contract-packers to manufacture a range of products for the company. Sanjiv Gupta, President and CEO of Coca-Cola India, joined Coke in 1997 as Vice President, Marketing and was instrumental to the companys success in developing a brand relevant to the Indian consumer and in tapping Indias vast rural market potential.

Case is all about: On Aug 5,2003 report published by Indias centre for science and

environment(CSE an NGO) made headline across the country which

said 12 major brand of soft-drink sold in New Delhi contained high level
of pesticides which leads to brain damage.
Products that failed were :i) ii) iii) iv) v) vi) vii)

Mirinda lemon Coca cola , Thums Up Fanta Mirinda Orange Pepsi , Diet Pepsi and Blue Pepsi 7 up and Mountain dew Limca, Sprit

Pesticide Containt by CSE:Brand Mirinda Lemon Coca-cola Fanta Pepsi 7 Up Mirinda Orange Limca Blue Pepsi Mountain Dew Thums up Sprite Level of pesticide 70 times 45 times 43 times 37 times 33 times 39 times 30 times 29 times 28 times 22 times 11 times

Source: CSE Press Release, Hard Truths about Soft Drinks, 8/5/03.

Reaction of Govt. and public: India Parliament announced ban on soft drinks. Various state govt decided to send samples to lab for

testing.
Activist groups began protest against the soft drink

comapaies.

CSE Report: CSE tested 3 bottles each of 12 different brand for the

presence of 32 different pesticides used in India.

They

followed US environmental protection standard

procedure and also used GAS CHROMATOGRAPHY

which was further supplemented by mass spectrometry

which identified chemical beyond doubt.
PepsiCos own report in an independent lab , Vimta Labs

showed no detectable pesticides.

Rajeev Bakshi (country head) charged that CSE report

was base less and should be disregarded.

 Sanjiv Gupta coke president also went on the

offensive side on this serious alligation. Hindustan coca cola beverages move to Bombay high court challenging the Maharashtra govt. confiscation of huge stock of its aerated water products from a plant in Pune, following alllegation of pesticides. Meanwhile the state secretary, food and drug administration made it clear that govt. will take tough stand. FDA officials of the state visited all the six bottling plants in the state in 2nd week of August and issued a van on disposal of existing stock.

Regulatory Framework: The Bureau of Indian Standard (BIS) indicated that pesticides must be

absent and set a limit of 0.001 ppm.

Bakshi attacked European Union (EU) norms saying that the EU had a

vested interest in creating standard that would reports from developing countries.
Irrespective of the desirable level of pesticides, most experts agreed

that the removing pesticides from water was neither difficult nor expensive.
One method of removable of pesticide is reverse osmosis and other is

activated carbon technology which track bulky pesticides and break them down.

Random sample survey conducted in Delhi, a few days after the CSE

Conclusion
i) On 21 August 2003, the govt. announced that samples of 12 soft drinks

brands had been tested and found to have pesticide content with in the
safe limit. ii) The Health minister Susma Swaraj added that only 3 samples of soft drinks were found to have pesticide levels below the EU norms. And in others it was above the limit. iii)As soon as Swaraj made the statement in parliament, an agitated opposition charged that bribes were involved.

iv) Strangely enough following the ministers announcement both CSE

and the soft drinks manufacturers

Suggestions
Communicate openly with key constituents,

including the public, the media, employees, franchisees, the trade/channel, state and national government, and suppliers. Open, honest communication is key to communicating a spirit of partnership and a willingness to resolve the issue in a way that benefits the Indian consumer. Choose to differentiate as a more socially responsible company. Though a united front for Coke and Pepsi was a successful tactic when the crisis first broke, now is the time to take advantage of an opportunity to demonstrate leadership in a sphere that is critically important to your key constituents.

 Recognize the upsize for reputational risk on a

corporate level if the situation can be turned into a positive. By correcting the pollution in India and alleviating tensions at the local level, The CocaCola Company has made a deposit in its global reputational capital account. Launch a campaign to educate the public, the government, and the media about environmental stewardship activities. Company Should come up with new effective advertisement as Coke did but Pepsi didnt show any interest.