Coke and Pepsi on India and Targeting Consumers Many multi-national corporations face a lot of difficulties while conducting their businesses in different parts of the world; Coca-cola and Pepsi are not an exception. Even though they are well known multibillion dollar corporations with iconic brands across the globe, Pepsi and Coca-cola have encountered a wide range of challenges in the formation and allotment of their products in several parts of the world, including India. Coca-cola and Pepsi deals with soft drinks and since soft drinks are considered as optional and luxury products, they find it hard to expand their markets in India. The Pepsi and Coca-cola companies were caught up in a case in Indi that brought up controversies about their
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It has been known that, water is sacred in India and therefore whoever does not value water cannot be accepted in such a setting and this is the reason why Coke and Pepsi had problems in India by neglecting their responsibilities of preserving water and keeping it clean.
Nonetheless, Coke had become the more frequent targeted company in India than Pepsi. The reason that Pepsi has an Indian CEO cannot be used to justify why Coca-coal is under more scrutiny because, the case was in 2003, and Indra Nooyi became Pepsi’s CEO in 2006. Therefore, the products were already under scrutiny even before Pepsi taking in an Indian CEO. In addition, the pesticides levels/contaminations in the Coke products were higher (45 times) compared to Pepsi’s (37 times), and this might be the reason why Coke is under more scrutiny for higher contamination …show more content…
One of the lessons learnt from this case is that, a company should be able to take responsibility for its actions. This was not done by the two companies because, they denied the allegations and failed to take action. Lesson two is that, a company should be able to face its consumers, explain the problem, why it occurred and measures that are being taken to fix the issue. Lesson three in this case is that, if a company is involved in a scandal, the management should make sure that, they inform their consumers about the progress on solving the issue instead of coming out clean with their own tests like what Pepsi and Coke did. Companies should never play blame games when caught up in a situation the way the two companies did. Coke and Pepsi alleged that, other soft drinks companies had high pesticides levels too, yet they had denied the claims. Companies should learn how to deal with
It has been known that, water is sacred in India and therefore whoever does not value water cannot be accepted in such a setting and this is the reason why Coke and Pepsi had problems in India by neglecting their responsibilities of preserving water and keeping it clean.
Nonetheless, Coke had become the more frequent targeted company in India than Pepsi. The reason that Pepsi has an Indian CEO cannot be used to justify why Coca-coal is under more scrutiny because, the case was in 2003, and Indra Nooyi became Pepsi’s CEO in 2006. Therefore, the products were already under scrutiny even before Pepsi taking in an Indian CEO. In addition, the pesticides levels/contaminations in the Coke products were higher (45 times) compared to Pepsi’s (37 times), and this might be the reason why Coke is under more scrutiny for higher contamination …show more content…
One of the lessons learnt from this case is that, a company should be able to take responsibility for its actions. This was not done by the two companies because, they denied the allegations and failed to take action. Lesson two is that, a company should be able to face its consumers, explain the problem, why it occurred and measures that are being taken to fix the issue. Lesson three in this case is that, if a company is involved in a scandal, the management should make sure that, they inform their consumers about the progress on solving the issue instead of coming out clean with their own tests like what Pepsi and Coke did. Companies should never play blame games when caught up in a situation the way the two companies did. Coke and Pepsi alleged that, other soft drinks companies had high pesticides levels too, yet they had denied the claims. Companies should learn how to deal with