business studies project 2021 -2022 (1).pptx
- 1. INTRODUCTION • Business is said to be a product of its environment which consists of all those external things to which it is exposed and by which in many be influenced directly/indirectly. • Alll the elements of business environment i.e economic, political, social,, legal and technological should be closely observed and scrutinized. • In this presentation we will be analysing various element of business environment of Indian soft drink industry.
- 2. PARTICIPANTS OF THE INDIAN SOFT DRINK INDUSTRY
- 3. From 60s to 90s • Coca-Cola was the first multinational corporation to enter the Indian market in the year 1956 • No sooner did Coca-cola enter the Indian market than it became a hit in the Indian market and was readily accepted • According to the Indian foreign exchange act of 1974, foreign companies selling consumer goods must invest 40% of their equity stake to Indian associates • In 1977 due to a change in Indian govt administration it decided to exit the Indian market, they asked Coca-cola to handover their Indian subsidiary • After Coca-colas’ exit, various Indian companies entered the Indian soft drink market
- 4. • A govt run company introduced ‘double seven’ but it didn’t do well in the market • Coca-colas’ former local bottler pure drinks , created ‘Campa Cola’ in the absence of foreign competition • Parle , a food and beverage company introduced gold spot, thums-up, citra, maaza & limca • Even though many Indian soft drink brands were developed, Campa Cola and thums up dominated the entire soft drink industry until the early 1990s. • As india got familiaresed with global brand and US market seemed to reach its saturation point pepsi entered the Indian market. • Pepsi entered Indian market in 1989 through a joint venture with two Indian companies with the brand name of lehar pepsi.
- 5. 1991 ONWARDS • With the new policy in 1991 foreign brands were allowed to operate without any Indian partners in the market. • Coco re-entered the market in 1993, with its wholly- owned subsidiary coca-cola India Pvt. Ltd. • These companies grew rapidly in India with an extensive distribution system comprising of customers, distributors, and retailers. Aggressive selling strategies were adopted by these brands. • Various marketing strategies were adopted like jingles, celebrities, endorsement, and tag lines to reach out to customers.
- 6. EFFECTS OF VARIOUS ELEMENTS OF THE BUSINESS ENVIRONMENT
- 7. ECONOMIC ENVIRONMENT • As a part of economic reforms, the government of India introduced a new industrial policy of 1991. • As per the new liberalization policy of the government foreign brands were allowed to operate without any Indian partners. • With liberalization the india customer witnessed an increasing exposure to new domestic and foreign products through different media such as television and internet. • Coca – cola acquired the ownership of the nation’s top soft drink brands including thumbs up(the most trusted brand),limca.maaza,citra, and goldspot.
- 8. POLITICAL ENVIRONMENT • In 1977, due to the change in the political situation in the country, the newly established government wanted coca-cola to hand over its Indian subsidiaries. • As coca-cola did not agree with the terms, it decided to exit from the Indian market • This shows that the political environment has an immediate impact on business transactions. • In the present scenario, we also observe that government ideologies favor MNCs in India so they can operate freely here.
- 9. SOCIAL ENVIRONMENT • India’s one billion people, growing middle class and low per capita consumption of soft drink made it a highly contested market for soft drink companies. • In 2001,coca-cola realized that in order to compete with traditional refreshments competitive pricing was essential. In response , coke launched a smaller bottle priced at 50% of the traditional package • The tagline like ‘life ho to aisi’ and ‘Thanda Matlab coca cola’ created a social bonding within the Indian rural and urban market segment. • As a healthier option for the consumers it came up with diet coke and various gift packs during the festival time.
- 11. TECHNOLOGICAL ENVIRONMENT • Television and internet companies’ advertising, marketing, and promo are the main digital tools used for marketing by soft drink companies. • Coca-Cola is using digital technology to create new consumer experiences via innovative programs like sip & scan, which lets consumers unlock experiences and prizes by scanning icons on Coke packages with their mobile phones. • The innovative pet bottle packaging of the product which are less dependent on petroleum and have lower carbon impact increased the sales further as it is easy to use and environment friendly.
- 12. LEGAL ENVIRONMENT • Legal environment constitutes the law and legislation passed by the government and has to act according to various legislation. • Coca-cola agreed to invest 40% foreign equity but stated that it would not allowed local participation in administration and technical units. It was against the foreign exchange regulation act. • The federal Nutrition Labeling and Education Act (NLEA) of 1990 amends the Food, Drug and Cosmetic Act (FD&CA). It requires most food to bear nutrition labels and prescribes their form and content.
- 13. COMPETITIVE BRANDS IN THE INDUSTRY
- 14. • PEPSI Pepsi is a hundred-year-old brand loved by over 200 million people worldwide. The largest single-selling soft drink brand in India is the ubiquitous ‘socializer’ on every occasion. But what has made Pepsi the single largest selling soft drink brand in India is a formula concocted a century ago in a faraway continent. • COCA-COLA Owned and manufactured by the Coca-Cola Company, Coca-Cola was invented by American pharmacist John Pemberton in the late 19th century at a drugstore in Columbus, Georgia. It was initially introduced in the market as a patent medicine. Coca-Cola is simply referred to as “coke”, which became a registered trademark by the Coca-Cola company in the United States in 1944.
- 15. • GOLD SPOT This orange colored carbonated soft drink was introduced in the early 1950s, and acquired by the Coca-Cola company in 1993. Its tangy taste has been popular with Indian teenagers. • LIMCA This thirst-quenching beverage features a fresh and light lemon- lime taste. The Limca brand was introduced in 1971 and acquired by the Coca-Cola company in 1993. • MAAZA Maaza, launched in 1984 and acquired by the coca-cola company in1993, is a non carbonated mango soft drink with a rich, juice & natural mango taste. Mango drinks currently account for 90% of the fruit juice market in India. Maaza currently dominates the fruit drink category and competes with Pepsi’s Slice brand of mango drink and Frooti, manufactured by Parle Agro.
- 16. • THUMPS UP In 1993, the Coca-cola company acquired this brand, which was originally introduced in 1977. Its strong and fizzy taste makes it unique carbonated Indian cola. As of February 2012, Thumps Up is the leader in the cola segment in India, commanding approximately 42% market share and an overall 15% market share in the Indian aerated waters market. • APPY FIZZ It is a product by Parle Agro, introduced in India in 2005. Appy Fizz consists of carbonated apple juice, and is used as the basis for cocktails and is a popular drink. After the success of Appy which was clean apple juice, Parle launched its sequel product as Grappo Fizz, which is a carbonated grape juice.
- 17. • SPRITE Manufactured and produced by the Coca-cola Company, Sprite is a colorless lemon-lime flavored soft drink. The Coca-Cola Company introduced the soft drink to the market to compete against PepsiCo’s 7 Up. Sprite’s packaging is a green transparent bottle with a green and blue label. • FANTA Fanta is a global brand of fruit-flavored carbonated soft drink created by the Coca-cola Company. In India, Fanta entered the market as a substitute for the then-popular Indian soft drink Gold Spot. When Coca-Cola re-entered the Indian market in 1993, it bought Gold Spot from Parle and withdrew it from the market in order to make space for Fanta.
- 18. • Center purpose of business goes beyond earning profit. It is an important institution in society and has to take into account the environmental concern also. • The center for science and environment an activist group in India, focused on environmental sustainability issues, issued a press release on August 5th, 2003, stating 12 major cold drinks brands sold in and around Delhi contain a deadly cocktail of pesticides residues. • In response to this Coca-cola & Pepsi launched independent campaigns to pressure the public, taking out full-page newspaper advertisements and directing consumers to their corporate websites to review test results and safety protocol in greater detail. They addressed press conferences wherein they assured their quality standards and attacked the credibility of CSE and their lab results. • In Pluchimada, Kerala, Coca-cola was allegedly responsible for creating problems by communities by deteriorating quality and quantity of groundwater due to its over-exploitation by the company. ENVIRONMENTAL IMPACT
- 19. CONTROVERSY RELATED TO THE SOFT DRINK INDUSTRY • Coca-cola and Pepsi co sold soft drinks containing pesticides harmful to human health and misled India’s 1 billion people over claims that their product was safe for human consumption, Indian MPS concluded yesterday. • Their report recommended stringent new regulations for fizzy drinks which would “seek complete freedom from pesticides residues in aerated beverages”. An estimated seven bottles of cold drinks are sold to every Indian each year in a market worth $900 million. • Coca-cola also fares protests about water extraction and pollution at its plant at mehendiganj, near Varanasi in Uttar Pradesh. • A third protest has begun at sivganga in Tamil Nadu, which is already facing a water shortage.
- 20. CONCLUSION • It is concluded that the business environment influences the working of a business enterprise in important ways.it is dynamic in nature and uncertain as no one can predict what will happen in the future. • A positive change in the business environment leads to growth of the business while a negative change leads to decline in business. A business should identify the sign of threats to protect itself from negative change while it should identify the early opportunities to get the maximum benefit out of it.
- 21. REFERENCES • www.pepsocoIndia.co.in • www.coca-colaIndia.com • www.capicola.com • www.theguardian.com • www.Indiaessays.com • www.Indiaenvironmentalportal.org.in