Case Study

The Coke Pepsi Rivalry: Pepsi Vs. COKE

The cola wars had become a part of global folklore - something all of us took for granted. However, for the companies involved, it was a matter of 'fight or succumb.' Both print and electronic media served as battlefields, with the most bitter of the cola wars often seen in form of the comparative advertisements.

In the early 1970s, the US soft-drinks market was on the verge of maturity, and as the major players, Coke and Pepsi offered products that 'looked the same and tasted the same,' substantial market share growth seemed unlikely. However, Coke and Pepsi kept rejuvenating the market through product modifications and pricing/promotion/distribution tactics. As the competition was intense, the companies had to frequently implement strategic changes in order to gain competitive advantage. The only way to do this, apart from introducing cosmetic product innovations, was to fight it out in the marketplace. This modus operandi was followed in the Indian markets as well with Coke and Pepsi resorting to more innovative tactics to generate consumer interest.

In essence, the companies were trying to increase the whole market pie, as the market-shares war seemed to get nowhere. This was because both the companies came out with contradictory market share figures as per surveys conducted by their respective agencies - ORG (Coke) and IMRB (Pepsi). For instance, in August 2000, Pepsi claimed to have increased its market share for the first five months of calendar year 2000 to 49% from 47.3%, while Coke claimed to have increased its share in the market to 57%, in the same period, from 55%. 

Media reports claimed that the rivalry between Coke and Pepsi had ceased to generate sustained public interest, as it used to in the initial years of the cola brawls worldwide. They added that it was all just a lot of noise to hard sell a product that had no inherent merit.

Coke had entered the Indian soft drinks market way back in the 1970s. The company was the market leader till 1977, when it had to exit the country following policy changes regarding MNCs operating in India. Over the next few years, a host of local brands emerged such as Campa Cola, Thumps Up, Gold Spot and Limca etc. However, with the entry of Pepsi and Coke in the 1990s, almost the entire market went under their control. 

Making billions from selling carbonated/colored/sweetened water for over 100 years, Coke and Pepsi had emerged as truly global brands. Coke was born 11 years before Pepsi in 1887 and, a century later it still maintained its lead in the global cola market. Pepsi, having always been number two, kept trying harder and harder to beat Coke at its own game. In this never-ending duel, there was always a new battlefront opening up somewhere. In India the battle was more intense, as India was one of the very few areas where Pepsi was the leader in the cola segment. Coke re-entered India in 1993 and soon entered into a deal with Parle, which had a 60% market share in the soft drinks segment with its brands Limca, Thums Up and Gold Spot.

Questions:-

1.      1. Analyze   the main reasons behind the rivalry of Pepsi and Coke and why there  is a need of    such strategic  change.

2.     2.  Do the SWOT analysis of the case study.

Business News

• R- infra commissions Solapur-Karad line
• KKR eyes small stakes in India Firms

Thought of the day

“Talent hits a target no one else can hit; Genius hits a target no one else can see.”

                                                                                                         -Arthur Schopenhauer

Marketing Glossary

Advertising or marketing clutter: refers to the large volume of advertising messages that the average consumer is exposed to on a daily basis

Guerrilla Marketing:  unconventional system of promotions that relies on time, energy and imagination rather than a big marketing budget.

Media Vehicle: Specific print or electronic medium employed in an advertising campaign.

Weekly Dose

Punch Line of Various Companies

WIPRO- Applying Thought

Adobe -Simplicity at work. Better by adobe.

Macromedia -What the web can be.

FORD -Built for the Road Ahead GM -Only GM.

BMW -The Ultimate Driving Machine

TOYOTA -Touch the Perfection

HYUNDAI -Drive Your Way

HONDA -The Power of Dreams

Meet Your Alumni

 

Personal Detail                                                                      

1. Name   -Kanhaiya Chandra Madhukar                                                                                         
2. Date of Birth – 03.02.1983                                                                                                                                                                                                                      
3. Email- kanhaiyachandra.madhukar@areva-td.com
4. Contact No- 09717091579

Educational Qualification

1. Graduation- B.Com(Accounts)
2. PGDBM –Marketing    Year -2005-07( Ishan)                                  
3. Any Other Qualification-  MBA in Power Management from University of Petroleum Energy & Sciences

Knowledge Management Meets Business Intelligence

 

Knowledge and data have long been maintained as separate entities, but is it now time to formally integrate the two. Business intelligence, usually defined as the extraction of insights from structured data, has a long history. It incorporates such previous concepts as decision support, executive information systems, data warehousing, and data mining - but not knowledge management. Its primary focus has been technological; the business intelligence literature is replete with discussions of technologies for extraction, transformation and loading of data, for statistical analysis and for reporting results and formatting them in scorecards. Knowledge management, on the other hand, has a somewhat shorter history, with antecedents in corporate libraries, competitive intelligence, best practices sharing in corporate quality organizations, and knowledge transfer efforts. Its primary focus has been on the capture, sharing and distribution of unstructured textual and graphic information - as opposed to the structured, quantitative orientation of business intelligence. Knowledge management has also had a technological focus (particularly on web-based, repository, and collaborative technologies), but its adherents also place strong emphasis on the need for human and cultural interventions in order to make knowledge sharing work. Many in the knowledge management community have historically shied away from anything having to do with data and information, taking the more purist stance that knowledge management is concerned with knowledge not data or information. During knowledge management's early formative years, knowledge management gurus would define the hierarchy of data, information and knowledge discussing how data gets turned into information and information into knowledge. Knowledge management practitioners would be quick to point out that they worked with knowledge, not data or information. This would, of course, exempt them from having anything to do with business intelligence.

Social Networking Sites: An Effective Tool for Marketing

Social networking sites like Facebook, MySpace, and Twitter are not just for posting pictures of college beer fests. They have become a powerful marketing tool that if used correctly, can drive business to your website and translate into sales.

It's hard to resist a captive audience of millions who are all online and could be potential customers. If you don't have an account on one or all three and you have a business, you could be missing out on customers, all with money to spend.

First of all, for the true novice, we'll give you a brief primer on each social networking site. Facebook was developed by college students as a place for students to post pictures and keep in touch. It caught on, and is now used by millions of people across the country, including boomers and businesses; basically, you get a profile page and start adding friends. While doesn't happen overnight, eventually you can have a significant number of people who are now your target market audience.

Facebook has several features that are a marketing experts dream. For one thing, it's free. It allows its users to upload videos, news, start fun contests which can entice viewers to your profile and customers to your website.

MySpace is one of the most popular marketing tools because it is so flexible. It allows the user to build a web page, completely customizable, including links to your business website. For example, if you sell sporting goods, make your My Space account mostly about sports. You can change it according to what teams are doing well or what sport is heading into its season.

Case Study

Vodafone Essar's Advertising Strategy - The 'Zoozoos' Campaign

The case examines the advertising strategy of Vodafone Essar Limited (Vodafone Essar), the India-based subsidiary of the global mobile network operator, Vodafone. It focuses on the 'Zoozoos' advertising campaign that highlighted the different value added services (VAS) offered by the company.

The campaign introduced new characters called Zoo zoos. To convey a specific VAS offered by the company, each ad used a story which was enacted by the Zoozoos. The campaign created the buzz both in the traditional media as well as in social networking sites like Facebook and Twitter and video sharing website, YouTube.

While advertising experts appreciated the creativity of the ad campaign, they were apprehensive whether the popularity of the campaign would actually help the company increase its revenues.

Business News

• Spice Jet doesn’t need to raise money
• SBI rights issue may come next fiscal
• Adani ties up with Japan’s Kowa Co

Thought of the day

“Impossible is just a big word thrown around by small men who find it easier to live the world they've been given than to explore the power they have to change it. Impossible is not a fact. It's an opinion. Impossible is not a declaration. It's a dare. Impossible is potential. Impossible is temporary. Impossible is nothing.”

                                                                                                                     -John Maxwell

Finance Glossary

Margin Trading:

            Margin means borrowing money from your broker to buy a stock. Investors generally go for trading on margin so to increase their purchasing power so that they can own more stock without fully paying for it. That means you will pay a part of the buy price and the broker will lend you the difference.

Alpha and Beta of Stocks:

            Every investment involves two important aspects – returns and risk. And every investor wants to get the maximum returns with minimum risk. In this regard the significance of Alpha and Beta parameters of the stock portfolio are used to describe the two main risks inherent in investing in stocks. Alpha relates to factors affecting the performance of an individual stock or the fund manager’s skill in selecting the stocks while Beta relates to market risks.

Corporate Mania 8

1. Tata’s Nano Project was shifted from Singur to which place?

2. The 15th ASEAN Regional Forum Meeting was held at?

3. Who is the present Chairman of SEBI?

4.  "Magic" is the brand name of which mobile company's Prepaid Card?

5.   Citi Bank co-brands cards for which oil company?

6.  "Born in Japan Entertaining the World" is the tagline of which company?

7.  "Inspire The Next" is the punch line of which company?

8.   According to an Advertisement Slogan, who is "Best Employer in India 2007"?

9.    Expand ICICI?

10.  NASDAQ is an acronym for?

Answer - Corporate Mania 7.

1. Beyond the Last Blue Mountain 2.Kishore Bayani (The Chairman of Future Group) 3. Like No Other 4. HDFC Bank 5. Deccan Airlines 6. HSBC Bank 7. S.K.Burman 8. TV 18 9. Chanda D. Kochar 10. Arun Ramanathan

RPG group firms will work with each other on commercial terms

For the past three years, RPG group companies have maintained an arm's length relationship and worked with each other “pretty much on commercial terms only,“ according to vice-chair- man Sanjiv Goenka.

Speaking for the first time since he and his brother Harsh Goenka split business interests between themselves, Sanjiv Goenka said RPG group com- panies from across the owner- ship divide would continue to work with each other but only on commercial terms.

For instance, KEC International Ltd--a power transmission and cable company con- trolled by Harsh Goenka--could continue to support Sanjiv Goenka-run power utility CESC Ltd, but it has to bid the lowest to secure contracts.

“There are so many other transmission companies that we could work with”, Sanjiv Goenka said, while admitting that KEC was, till now, CESC's sole partner for laying trans- mission cables. 

Interview of Dr. Bency Joseph by Anjali Jayadev PGDM (HR), Ishan Institute of Management & Technology, Gr. Noida

Name :                            Dr. Bency Joseph

Designation:                  ExSquadron Leader, Doctor

Qualification:                   MBBS, MBH

Date of birth:                  12.02.1971            

Age :                              39

Phone number:                 9868207835

E-mail.ID                         bencyj@ yahoo.com

Q1.What do you think are the qualities that a doctor should possess?

Answer. It’s a very challenging job and one should be professionally sound and should empathise with the people and have a helping mentality without which one cannot be a successful doctor.

Q2. Which would come first, your personal life or your professional life?

Answer. Definitely, professional life comes first, because work is worship. Family is also important but for me work comes first because of the dedication I need to give to my community.

Turning Around Negative Attitudes

At one time or another, organizations develop an over-abundance of ”negative energy" or attitudes.  Sometimes they can be linked to organizational trauma, like down-sizing, budget restraints or workload increases, but sometimes they evolve over time with no apparent triggering event.  The negative organization is characterized by increased complaining, a focus on reasons why things can't be done, and what seems to be a lack of hope that things will get better.  It feels like the organization in stuck in treacle.  And, it's contagious.  Negativism can affect even the most positive employees.     

What can you do?  Based on an article by Arthur Beck and Ellis Hillmar, professors in organization development at University of Richmond, we suggest the following:

Case Study

Biocon - Kiran Mazumdar Shaw's Entrepreneurial Dream

Biocon India (Biocon), the number one biotech company in Asia in terms of revenues and market capitalization, was founded in the backyard of a suburban house in Bangalore in 1978 as a small operation of enzyme extraction. The woman behind Biocon - Kiran Mazumdar Shaw (Kiran) who dreamt of starting her own business with just Rs. 10,000 in hand and a degree in brewery - is now the richest woman in India. The case study describes how Kiran recognized the future potential of biotechnology industry when not many people in India knew about it. It describes in detail the challenges faced by Kiran in terms of gathering resources when she launched her biotech start-up. It discusses how Kiran's firm determination and belief in herself helped in overcoming the various challenges she faced.

Business News

·        ICICI to open 500 branches every year

·        SAIL to set up steel plant in Indonesia

ICICI to open 500 branches every year

India's largest private sector lender, ICICI Bank Ltd, will add 400500 branches annually over the next three years and focus on financing infrastructure projects in road and power.

“I feel that we have to grow beyond the number of existing branches... Over the next two three years, we would continue to add branches at the rate of 400500 per year,“ ICICI Bank managing director and chief executive officer Chanda Kochhar said.

The bank, which reported a 30.5% increase in net profit to `1,437 crore during the quarter ending 31 December, has been expanding its branch network at rapid pace. At present, it has about 2,500 branches and 5,800 ATMs. Talking about the expansion plans, Kochhar said the bank did not open any new branch in the current financial year, as it acquired Bank of Rajasthan “that itself meant an addition of 500 branches”.

SAIL to set up steel plant in Indonesia

Staterun Steel Authority of India Ltd (SAIL) will set up a 3 million tonne plant at Central Kalimantan province of Indonesia, entailing a likely investment of up to `15,000 crore.

“SAIL is poised to set up a 3 million tonne per annum (mtpa) steel plant in the province of Central Kalimantan, Indonesia, apart from setting up a mineral processing facility,“ an official close to the matter said.

The timeline for the plant will be decided soon, the official said.

SAIL inked a pact with the Indonesian government on Tuesday for setting up a steel plant and a mineral processing unit besides developing mineral deposits at Central Kalimantan province.

Campus Buzz

Our institute is going to organize international seminar in coming month on the topic Indo Jordan Friendship in Future Prospect in Trade& Cultural Relationships.

Thought of the day

“Possibility is only a word about bringing forth out of nothingness something we desire to become present, but possibility may be the most powerful word in our language because it enables us to visualize and strive for a future that is not available to us in the present. Possibility is like a time warp, allowing one to escape from the limits our past into an unshackled future. ”

                                                                                                                    -John Ehrenfeld

Economic Glossary

GDP DEFLATOR:

A price index based on the calculation of real gross domestic product that's used as an indicator of average prices in the economy. Those loveable economists who spend their days and nights compiling and estimating the size of our economic pie provide estimates of gross domestic product in both nominal dollars and real dollars.

MACROECONOMIC SECTORS:

The four aggregate sectors of the macroeconomy--household, business, government, and foreign--that reflect four key macroeconomic functions and are responsible for four expenditures on gross domestic product. These four sectors are the primary "actors" on the macroeconomic stage. Macroeconomic theories then explain macroeconomic phenomena by exploring the interaction among these four sectors. 

Health tips for Ishanian

MENINGITIS

In this disorder, the brain and the spinal cord meninges become inflamed, usually as a result of bacterial infection. Such inflammation may involve all three meningeal membranes: the dura mater, the arachnoid, and the pia mater. The prognosis is good and complications are rare, especially if the disease is recognized early and the infecting organism responds to antibiotics. However, the death rate in untreated disease is 70% to 100%. The prognosis is poorer for infants and elderly people.

CAUSAL ORGANISM- BACTERIAL INFECTION

Meningitis is almost always a complication of another bacterial infection: bacteremia (especially from pneumonia, pus in a body cavity, osteomyelitis, or endocarditis), sinus or middle ear infection, encephalitis, myelitis, or brain abscess.

Marketing Strategy

Marketing can do better

Why are so many marketing campaigns brand destroyers and money losers? Why is “branding“ becoming a devalued as- set, whose returns are dwindling (witness Google building the world's mightiest brand with barely a penny of orthodox marketing expenditure)?
Why do people and communities exact steeper and steeper discounts, price cuts, and mar- gin-crushing concessions from the beleaguered, besieged companies once known as the masters of the universe?

The half-life of companies is shrinking and the weary practice known as “marketing“, adding little to no real value, seems powerless to help.

The unvarnished truth is that the fundamental assumptions behind “marketing” haven't changed for decades. Though you may be using slightly more efficient channels (such as “social media“), more “creative“ ideas, or more productive mechanisms (such as pay-per-click), it's still a militaristic, adversarial school of thought that's largely about cramming “product“ down the already overstuffed gullets of “consumers“ by “targeting“ “messages“ jam-packed with illusory, imaginary benefits at them, in grand “campaigns“ that make overblown promises (“See this beer? It's going to land you the girl of your dreams!!”). I'd argue that marketing as we know it is, still, largely about talking down. And that's not nearly good enough to send this Great Stagnation packing.

Case Study

After several more rounds of long discussions with Linda, they finally decided to move back to Singapore. The needs of his wife, children and mother-in-law were the over-riding factors in his decision. The following months were spent packing and shipping their things and bidding farewells. Other than that, they did not have much time to think about their return to Singapore until the day of the departure. In fact, it did not cross their mind that it was something that they had to be mentally prepared for. After all, Singapore is home, they thought. In England, Mark had been offered the position of Global Strategy Manager at his company. This would mean a promotion and a higher salary and he would continue to enjoy the perks as an expatriate. On the other hand, taking up the regional marketing manager position in Singapore would essentially mean a demotion. He would have to accept a salary cut and would lose all the expatriate benefits. Linda had been pressuring him to return to Singapore.

Business News

• Adani signs infra deals with Indonesia
• Bharat Forge-Alstom JV to start in 2013

Thought of the day

“When the business plan, the operating plan, and the budget come together, you know precisely what you want to accomplish, how you're going to do it, who is responsible, what it's going to cost, and how you're going to meet your financial and operating objectives. When combined with an effective measurement and reward system, this becomes the most powerful way to establish accountability across your entire company and achieve results.”

                                                                                                                         -Bob Prosen

IT Glossary

Overflow

This is when there is more information than can be properly handled. It is often used to describe the production of a number larger than a variable can handle. For instance, if you are expecting 10 digits but receive 11, that’s overflow.

Overdrive

A processor upgrade sold by Intel that is used to upgrade an older processor to a newer, faster processor.

Overclocking

The act of running a chip at a higher clock speed than it was specified for. Very often, chips are capable of running faster than they are specified for, and thus can be safely overclocked. You overclock a chip by setting it at a higher bus speed, a higher multiplier, or both. Sometimes you need to set the chip to run at a higher voltage to accomplish this, further increasing the heat output of the chip.

Product Line of PepsiCo Brands

Pepsi-Cola: Pepsi, Mountain Dew, Aquafina, Sierra Mist, IZZE, SoBe, Mug, Tropicana Twister Soda, Tropicana Juice Drinks, Dole and Ocean Spray single-serve juices.

Frito-Lay: Lays, Cheetos, freetos, Sun Chips, Doritoz, Baked, Fritos, Grandma’s, Snack Mix, Munchos, Smart Food, Nut Harvest, Ruffles, Natural, Spitz, Stacy’s, Dips,

Tropicana:  Chilled juices & drinks, Tropics, Pure premium, Twister, trop50

MEET YOUR ALUMNI

Personal Detail

1. Name                          :           Sarnail Singh   

                                                                        

2. Date of Birth                :           July 25^th 1975  

                                                                                                                                                    

3. Email                           :           sarnail@hotmail.com

4. Contact No                  :           +1 416 303 2119

Educational Qualification

1. Graduation                  :           Bcom

2. PGDBM                      :           Mktg.             Year      1996 Batch    

                        

3. Any Other Qualification          :           Certified Internal Auditor

Professional Details

1. Current Job Title         :           Manager

2. Current Employer       :           Rogers Communications Inc – Canada

3. Salary Package

Interview Questions

1. One word that describe you best        : Good-Humour!

2. You get high on……..             : Challenge’s! First one gets the Oyster

  and second gets shell!         

           

3. What makes your day?                      : A pat on back for job well done!

4. If you could be rich or intelligent, which one would you prefer?

                                                      “I prefer being Intelligent; No one can be                                                       rich, without being Intelligent! &                                                                                  Intelligent can become rich and not vice                                                                   versa.”

5. If you could go back in time, which period of history would you go back to and why?

“Probably go back to pre Tsunami and helped people save there lives.”

6. The turning point of your life is…. “Born to my lovely parents.”

7. Challenges in Professional life…..It’s the Viability, Stability & Growth”,

“Tough time don’t last long, tough people do!”

8. How you want to contribute to your Institute….

“With motivational/informative sessions, share my professional experience and guiding him/her to achieve goals/objectives.”

9. Which is more effective, Individual or Group Performance :           

                                                                 

“Group performance is key to success

for any organizations/institutions! “It’s hard for an empty bag to stand alone.”

10. For you success is…              “The road to success is always under

Construction.”

Message for Ishanians……à Be yourself and enjoy the work and every bit of your life, you are lucky to have example’s in front of you to which you can relate your success stories.

                                                à Don’t wait but create the opportunities, “A ship docked in harbour, cannot face the form”. Don’t be jealous of other’s success and appreciate/applaud them and try to find fun everywhere, even in word Funeral, there is word “Fun”.

Impact of Inflation Risk on Investment Pattern

Risk is the quantifiable likelihood of loss or less-than-expected returns. Examples: currency risk, inflation risk, principal risk, country risk, economic risk, mortgage risk, liquidity risk, market risk, opportunity risk, income risk, interest rate risk, prepayment risk, credit risk, unsystematic risk, call risk, business risk, counterparty risk, purchasing-power risk, event risk

Inflation is the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. These effects include:

• Reduction of purchasing power
• Disruptions to stock and bond markets, which may cause volatility
• Devaluation of income on interest-bearing securities
• Squeezing of the profit margins of certain types of stocks

Case Study

President John F. Kennedy has been considered by historians to be one of the most charismatic and effective leaders in the American history. He was born into a very rich, highly disciplined and a closely knit family. His Father was not only an industrial tycoon but also highly politically influential and at one time, he served as the U.S. ambassador to England. Thus, John Kennedy came from a family of highly placed socio-economic status.

When he ran for the presidency of the United States, odds were stacked high against him. If elected, he would be the first catholic in that high office and perhaps the youngest president ever. Even though he had been a senator for some time, he was not as well known nationally. As one commentator remarked at the time “don’t send a boy to do a man’s job”. His leadership quality had not yet been tested.

Business News

• Philips to buy Indian appliance maker
• Mahindra acquires stake in East India Co.
• Orissa allows six iron ore mines to restart

Campus Buzz

• Republic Day will be celebrated on 26th Jan at 10.30am in our Campus.
• Sport activity shall be organised on 26TH Jan in our campus.

Thought of the day

“Most of us have potentialities that have never been developed simply because the circumstances of our lives never called them forth.”

                                                                                                                       -John Gardner

IB Glossary

Expatriate manager

A national of one country appointed to a management position in another country.

Exporting

Sale of products produced in one country to residents of another country.

Fixed exchange rates

A system under which the exchange rate for converting one currency into another is fixed.

Spiritual Article

Driving Force

Poignancy of human thoughts leads to the realization of the real cause of life and its purpose. We struggle to meet the challenges of life, in the course of  time we experience the ebb & flow of driving force, This force propels us to make move to the next level to keep us going and achieving the objective of life. It is the average energy of all the ebbs that cumulatively account for the ultimate success of life. What creates ebbs in life? It is the Positive attitude and belief of self in self.  Every flow impedes the ebb, this implies that even the tough time proactively prepares us to face the challenges with passion coupled with courage to sustain it and live the life with grace & glory. So feel, love & live the life with the crescendo to transform it like sea, hat has all the gravity, maturity, & depth. Understand the mystery and history of life to present the life with present of present.

Manoj Kumar

Asst. Professor

Marketing Management.