In regards to Coca-Cola's expansion to India, I will discuss the following three international marketing issues: Reason for expansion; Mode of Entry; and the elements of the "four P's" that coke used as it expanded into India. As for the reason that Coke expanded into India, it fairly obvious, profit. That is to say, that the main goal the Coca-Cola Company had in mind when they expanded to India was to increase revenue and market share. The initial mode of entry Coke used was wholly owned subsidiaries. After drastically failing at that approach, they changed their method of entry to a joint venture which worked much better for them. The elements of the four P's that I will discuss are Product, Pricing, and Promotion.
To begin with, let's discuss the Coca-Cola Company's reason for expanding into the Indian market. As I stated earlier, the main goal that the company had in mind was to increase revenue and market shares.
As it stated in the business week article, "Finally, Coke gets it right" India has over one billion consumers, a growing middle class, and an extremely hot climate. To be honest with you, knowing those factors alone would be enough for me to venture into that market with an ice cold soft drink as my product. In fact, you would be hard pressed to talk me out of it. Despite the "minefield" that the Coca-Cola Company has had to overcome in order to start turning a profit in the country, the potential is still phenomenal and in my opinion, well worth the costs required to get through the learning curves that they have had to overcome throughout their entry into the Indian market.
Speaking of learning curves, I believe the largest learning curve that Coke had...