Coca-Cola Company in India the Term Paper

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New, cheaper 200 ml bottles for example are aimed at rural and low-income urban markets. In a country where poverty is the plight of the majority of the citizens, such a strategy shows particular awareness of the specific culture and market. Market and cultural awareness is therefore of utmost importance when entering a foreign market such as India.

Characteristics and Importance of the Indian Market

It has been mentioned above that the Indian market, in terms of consumption per capita, has proved to be the soft drink market with the greatest growth potential in the East. It is therefore a very important location for the globalization and expansion practices of soft drink companies. Coupled with expansion plans however should be sensitivity to the market's needs, requirements and characteristics, some of which have been mentioned above.

In addition to the reality of in some cases extreme poverty, the culture of India frequently entails village life and military families. Cultural sensitivity is then be displayed in a number of ways, including showing examples of rural and military life in advertisements. Such techniques connect with the culture of India on an emotional level, thus encouraging a positive view of the advertised product.

Another very important part of India is its government and its requirements for doing business in the country. The government for example requires that India takes substantial part in any globalized business entering the country.

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The Coca-Cola company has begun practices to show this awareness, including its sale of shares.

Another way in which the company is showing this awareness is its hiring of Indian employees who are then allowed to make progress towards the position of manager. These managers serve to connect the branch of the company in India with the Coca-Cola basis in the United States, thus improving management practices and cultural understanding. An example of this is operations chief Sanjeev Gupta.

Gupta has turned around the less than desirable performance of the Coca-Cola company in India to make the soft drink the most competitive in the country. This has been done by means of explaining the marketing and consumer needs of the country. By honoring these, Coca-Cola was able to make a success of its product.

Globalization is never an easy process. However, if a company is willing to learn from its mistakes, as the Coca-Cola company has, strategies can be implemented to ease any transition. Coca-Cola has done this by taking to heart the advice of persons such as Gupta, who are aware of the specific cultural and government requirements within India. This has helped the company to make full use of the market potential that the….....

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