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Coca-Cola

In 2003, Coca-Cola attempted to enter the Indian market once again. Georgia-based Coca-Cola was attracted to India’s market because India’s per capita consumption of carbonated beverages is less than half of Pakistan and about five percent of China’s. India has the fastest-growing demand for consumer products in the world. Coke’s first attempt a decade earlier had resulted in gross mismanagement, which led to the company losing $20 billion Indian rubles. In Coke’s first attempt to enter the Indian market, it purchased Thumbs Up, the leading India-based carbonated soft drink, and hoped to replace Thumbs Up with Coca-Cola while maintaining the Thumbs Up distribution strategy. The greatest indignity is that India is one of the few markets where Pepsi has outsmarted Coke. For its return to the market, Coca-Cola built five plants, cut costly staff, revamped transport, shrunk bottles, and made them lighter to increase a truck’s carrying capacity. It also increased its number of distributors and dumped a global advertising campaign that was irrelevant to the Indian market.

 

83.Refer to Coca-Cola. In its first attempt to enter the Indian market, Coca-Cola engaged in:

a.acculturation

b.direct foreign investment

c.internal importing

d.globalization

e.restraint of trade

84.Refer to Coca-Cola. As a multinational company, Coca-Cola:

a.owns businesses in more than one country

b.is not affected by protectionism

c.is able to avoid trade barriers

d.pays no tariffs

e.is accurately described by all of these

85.Refer to Coca-Cola. What kind of strategy has Coca-Cola used for its second entry into the Indian market?

a.global consistency

b.market differentiation

c.market restructuring

d.local adaptation

e.acculturation

86.Refer to Coca-Cola. One way Coca-Cola increased distribution of Coke was to enter into a ____ with a refrigerator manufacturer. Coca-Cola provided the financing needed for the retailers to purchase refrigeration units, and the refrigeration manufacturer gave deep price discounts.

a.franchise agreement

b.direct investment

c.strategic alliance

d.brokered agreement

e.new-venture strategy

87.Refer to Coca-Cola. What two factors determined Coca-Cola’s desire to invest again in the Indian market?

a.political stability and nationalization

b.acculturation potential and discretionary income

c.the present of the competition and acculturation potential

d.the lack of substantial competition and India’s infrastructure

e.India’s purchasing power and the presence of the competition

88.Refer to Coca-Cola. The need for Coca-Cola to create a promotional strategy that was specifically targeted to the Indian market reflects a(n):

a.diversification strategy

b.awareness of cultural differences

c.desire to maintain a high contribution margin

d.insular approach to strategy

e.desire to maintain global consistency

 

 

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