Coca-Cola has emerged as the Market Leader in India with its Thumps Up brand and Sprite has surpassed Pepsi to take over 2nd place with 16.16% market share, with PepsiCo lagging behind with market share at 13%. Coco-Cola plans to increase its 600ml variant price from rs.20 to rs.22 and 2lt bottle by rs.5, to rs.55. Isn’t this a brave step taken by Coco-Cola? The reasons could be, increase in Demand for its products now that the festive season is approaching, or to increase the margin due to an increase in the Input costs. PepsiCo is following in the footsteps of Coco-Cola to increase its price by 10%.
Coco-Cola, with an increase in its sales by upto 18% in India is looking good and has a positive chance of sustaining its position in the market even with the inrease in prices. With the decrease in its sales as well as the market share, PepsiCo’s needs to take a strategic decision whether to follow Coco-Cola by increasing its prices or to remain with the existing pricing policy so as to provide an opportunity for growth. Well if PepsiCo has decided to increase its prices, it would expect to remain with same market share along with increase in margin. If PepsiCo doesn’t change any prices, it can capture the market with its low comparative price.
Well in America, pepsi's profits reduced by 43% where as coke's profits reduced by 7%, because of strong dollar.
Posts
No comments:
Post a Comment