CASE 1-3: Coca Cola and Pepsi Learn to Compete in India The political environment in India proved to be critical as its government was unfavorable to foreign investors. They prohibited the importation of soft drinks as they believed they could be obtained anywhere. They also banned foreign branding and wanted the name Lehar Pepsi and Coca-Cola India, an indigenous name. These effects could not be predicted before entering the market because India's trade policies, rules and regulations were difficult and unpredictable. The development in the political arena would have been handled well if Coca-Cola had avoided having to sell 49% of its shares by approving the start-up of new bottling plants. The timing of entry into the Indian markets has brought in terms of promotional activities, advertising and giveaways of free offers and holidays of Coca cola and Pepsi's Basmati rice, Coca Cola's aim to connect the youth to the market, the various promotional television campaigns in India using celebrities and Pepsi's sponsorship of cricket and football sports. In terms of pricing policies, Pepsi gained faster market share due to its belligerent pricing policies and reducing the price of coke by 15-25% in the market. In terms of organizing distribution, bottling and packaging of products for better distribution around, in addition, to save and recycle water usage. To defuse further boycotts or demonstrations against their products, they need to set up specific funds to cultivate people's awareness, help finance agricultural products, and organize seminars in schools to make people aware of certain information they need to know. In the long term the furor will surely die down if Coca-Cola doesn't talk to the people, but the best way is to address the situation directly by making a statement to the people.