Question

Topic: Strategy

Cola

Posted by Anonymous on 125 Points
Why Pepsi & Coca cola sells more in Pakistan than in India??
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RESPONSES

  • Posted by Mikee on Accepted
    Marketing?
    First to market?
    Better distributors?
  • Posted by Chris Blackman on Accepted
    Hi

    Might be a marketing issue, could also be environmental.

    GDP per head is approximately the same (India $810, Pakistan $790) but Pakistan has a lower cost of living (44 vs 51, New York = 100) so perhaps the answer is simply more disposable income?

    Are you saying overall sales are higher in Pakistan, or just that sales per capita are higher? Indian Population is 15x that of Pakistan so assume you are comparing per capita sales.

    Other major issues: 96% of Pakistanis are Muslim whereas 81% of Indians are Hindu. Are soft drinks incompatible with Hindu religion? Many Hindus are vegetarian and health spending in India is roughly 50% higher than in Pakistan, perhaps Indians have woken up to the negative health impacts of carbonated, sugar-heavy soft drinks?

    Just my thoughts.

    ChrisB



  • Posted by Jay Hamilton-Roth on Accepted
    Taste preference?
    Cost?
  • Posted by Mushfique Manzoor on Accepted
    hi there

    lemme give you another perspective....

    1. traditionally Pakistanis are more sweet-tooth than the Indians; the individual sugar intake is much more in Pakistan than in India

    2. historically Pakistanis are more consumerist than the Indians. Pakistan has been consumerism, rather lets say a capitalist economy since its independence in 1947 whereas India followed a socialist economy. as a result while pakistani consumers got more exposed to Coke and Pepsi, the indians saw Coke and Pepsi being kicked out of the country (only to be invited in the early 1990s). due to the followed economic policy, consumption trend used to be higher in Pakistan than in India (situation has reversed now),

    3. the economic model has also influenced the overall family teachings on the consumption and savings habit and affinity towards western culture. if you see the per capita savings in India, thats multiple times higher than that of Pakistan, proves the point. (although the situation is reversing in India).

    4. add to this is the patritism factor, Indians, with their closed economy, developed their own brands and consumers were exposed to those only. but in Pakistan this didnt happen.

    5. the size of the country, weather and above all distribution.

    all these factors have contributed over a long time to the current comparative higher consumption in Pakistan that in India. if any of you have followed the Indian CSD market, you might have noticed that even after the entry of Coke and Pepsi in India, these brands still has not been able to take leadership positions, those belongs to home-grown brands like Thumbs-up and Limca (brands now owned by Coke company). intially these home-grown leading brands put such fight with COKe and Pepsi that those giants were not making any profit, they reached profit only after acquiring these brands.

    referring to ChrisB's point of religion being a bar, to the best of my knowledge and IMHO theres no such bar. on the Health point, may be, i am not sure.

    hope this helps.

    Cheers!!
  • Posted on Accepted
    Government connections?

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