What should Gupta do now? Coca-Cola has also just announced plans to significantly increase the marketing budget in India from next year. In individual property regimes, resource rights are held by individuals who can exclude others; an example might be private ownership of grazing land bounded by a fence. Gupta should have been prepared by the Kinley water crisis. What basic choices are possible? To punish Coca-Cola's principal bottler, a Congress Party stalwart and longtime Gandhi supporter, the Janata government demanded that Coca-Cola transfer its syrup formula to an Indian subsidiary. It would be advisable to have team meetings and crisis updates to make sure that everyone has a consistent message.
Coke also had the Belgium example to follow. The two brands are competing for the market share nationally and globally by trying to clinch the thirst of every person in the world. Corporate reputation can be taken… Words 1456 - Pages 6 company, but in general all of the above listed factors regarding a corporations reputation would be useful if a stakeholder is purchasing a product from the company or planning to make an investment. With all the resources that Coke has, there was no concentrated effort by Corporate Coke America to rally behind India. They should have followed the lead of Coke Belgium by not only implementing an aggressive public relations campaign, but also put a crisis management plan and team in place while the motivation was still high to learn from mistakes.
In reaction to this report, the Indian government banned Coke and Pepsi products in Parliament and state governments launched independent investigations, sending soft drink samples to labs for testing. Nor is it a primary information source. Case Study 16: Coke and Pepsi 1. In 2008, it has been operated in more than 200 countries and produced almost 450 brands. However, in my opinion, when Coke and Pepsi united for the press conference, it seemed that it was big corporation versus public safety advocacy groups. By having this domino effect happen, Coke and Pepsi become more profitable and.
After reading the case study, I have come to the conclusion that Pepsi has a better long-term prospect than Coca Cola has. I provide a very brief overview of the critical concepts for solving the commons problem, and translate these ideas to the business context. Ever since the Coca Cola Company started operating in more 200 nations, it started facing many challenges. In government regulated fisheries, as in Iceland and New Zealand, this has taken the form of a treatable share of a fishing quota. Critics felt that Coca-Cola was spending millions of dollars to project a 'green' and 'environment-friendly' image of itself, while failing to make any change in its operations.
Coca Cola took an extension two times. They may rethink some of the decisions they have made in regards to the use of water in the manufacture of their products. They assumed that everything would go to plan. Organization do have to face situations where they have to face local outrage against them. Place and Price The marketing exposure of PepsiCo and Coca-Cola is everywhere ranging from commercials, billboards, and mail advertisements all over the world. Since Coke already has a good social responsibility policy, they should increase their environmental protection programs to concentrate on the Indian community.
Crisis is not new for Coke. It is present on all seven continents and is recognized by 94% of the world population. By driving up the fixed costs for other new entrants, the profits stay with them and future competitors become more hesitant to enter the carbonated soft drink market. Step 3: Set up a centralized crisis management center: As Gupta was gathering the right information from the right people he should have made arrangement for creating a crisis center for the constituents, that is, media, employees, customers, and government. Step 4:Comminicate early and often: Gupta should have made a plea in person especially since the crisis involved the threat to lives.
» Analyze the underlying reasons for the growing criticism against Coca-Cola in India and explore ways in which the company can address this issue. Coke also had the Belgium example to follow. Thousands of farmers in India have been affected by Coca-Cola's practices, and Coca-Cola is guilty of destroying the livelihoods of thousands of people in India. Gupta should put together a transparency policy with the public. Steps should have been taken to immediately to correct the Kinley water situation and subsequently he soft drinks.
They need to be more forthcoming and transparent with information. Half-truths and rumors would only inflame the situation. Necessary condition: technologically feasible to easily exclude others. Whenever these two companies want to enter to another market. If Coke had responded quickly and adequately to the Kinley water crisis, this could have been avoided. Both companies experienced a range ofunexpected problems and difficult situations that led them to recognize that competing in India requires special knowledge, skills, and local expertise. More than 10,450 beverages are consumed every second.
PepsCo has been able to join two local companies and rebrand them from Voltas and Punjab Agro to Lehar Pepsi. Develop a list of factors or characteristics that different stakeholders may use in assessing corporate reputation. There needs to be a consistent message from Coke within the community. The political environment in India proved to be very problematic for both PepsiCo and Coca-Cola when they entered the market. It is not surprising that the success record of self-regulation by industries has been mixed at best. On the other hand PepsiCo has focused on targeting the same customer base as by Coca Cola but with the help of sporting stars mostly Cricket stars.