India's Case Study Of Coca Cola And Coca-Cola In India

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Introduction Coca-Cola is the largest cold and soft drink company in the world and it exists in more than 200 countries. The company brand is also much more popular than other brands in the world because they went global in the entire world and everyone can find it almost everywhere. Moreover, in 1993 the company came back to India after the new government policy that required the company to show the formula in 1977, which made Coco-Cola stop working in India at that time (Banerjee, 2009). Coco-Cola came back because they knew that the Indian population is 1 billion people which is a huge market for soft drinks. The soft drink industry grew 76% from 1998 to 2002, and Coca-Cola invested $1 billion to become the leader in India again. In addition,
However, many restaurants, cafes, and universities dropped the sale of those drinks, which made Coca-Cola sales drop by 30% in the first two weeks. Not only did the sales in India drop, but also Coke stock in the New York stock market dropped by 5% to be 50 per share. Moreover, the investors have not traded on Coco-Cola stock because they feared that what happened in India could affect the price of their shares. However, Pepsi did independent tests on their drinks, which showed negative results and they published them for the public (Banerjee, 2009). In addition, Coca-Cola’s CEO in India, Gupta, commented about the CSE and the results, but Pepsi published independent tests on their drinks, which showed negative
Because of this, the non-government organizations used this laxity from the government to make claims against Coke. In fact, Coca-Cola is the biggest international investor in India. Because of this, NGOs could use this company as a target. Coke India has huge popularity in the entire world, so any information against Coke could affect costumer loyalty. On the other hand, NGOs gained a lot of popularity with the people and they supported NGOs claims against Coke because the NGOs showed this report to avoid people from getting sick in the future. In addition, soft drink companies are very popular in India, which made any allegation against the companies grip the people and the media attention. The allegations showed pesticides in the soft drinks that might lead to cancer, skin diseases and mental illness in the future, which made the people scared of drinking soft drinks (Ravi & Lipschutz,

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