Coca-cola and Indian Market: Would the Indian market would be a lucrative market for Coca-cola?

Essay by footscUniversity, Bachelor'sA, October 2007

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Even though India has one of the fastest growing economies and continues to move forward with market-oriented economic reform, it is constrained by inadequate infrastructure, a cumbersome bureaucracy, corruption, labor market rigidities and regulatory and foreign investments.

Coca-Cola is the most valued brand name on the face of earth according to Daniel Workman. Interbrand's Global Brand Scorecard for 2003 ranked Coca-Cola the number one brand in the world and estimated its brand value at $70.45 billion and with India trying to bring economic success to their country, what better way than to welcome "Coca-Cola".

Coca-Cola has made significant investments to build and continually improve its business in India, including new production facilities, wastewater treatment plants, and distribution systems and marketing equipments. In December 2006, Coca-Cola India launched a housing project for rehabilitation of Tsunami victims in Collachal, Kanyakumari in partnership with Indian Red Cross Society. During the past decade, Coca-Cola has invested more than $1 billion US dollars in India, making Coca-Cola one of the countries top international investors, with another pledge to invest $100 million more in its operations in India.

Through all the goods and services required to produce and market Coca-Cola products Coca-Cola has indirectly created employment for over 125,000 people in India and directly employs approximately 6,000 people. Its operations in India consist of 25 company-owned bottling operations and 24 franchisee-bottling operations.

Currently India is the 12th largest economy in the world and one of the fastest growing economies. With over one billion plus population, and over 58 percent is under the age of 20, the India market presents a lucrative and diverse opportunity for Coca-Cola. India is a key emerging market for Coke, containing roughly a sixth of the world's population. The soft drink sector is growing between seven and eight per cent per...