Cultural difference among India and America may be the cause of failure of Coca Cola in India. Language is the way of communication to the world. Hindi is the national language of India. The rationale could be that some people might not understand the language of Coca Cola’s management. On the other hand, the flavour of Coke is quite different for the people because Indian population was not familiar with that taste and this is the reason that Coke is more admired in US as compared to India (Fitzpatrick, 2014). US give value to rules and regulations in every field of business as compared to India. Mostly Indians don’t believe in foreign investment because it generates revenue for the other country. There is also a myth in India that, foreign companies do not give importance to local employees. This can also be the reason of not believing in foreign investment. The above cultural aspects may have been causes difficulties for Coca Cola in India.
It is necessary for MNCs to maintain customer loyalty and make good reputation in global market. The company should ensure people of that particular area that their company will not harm environment anymore and also take some initiatives to get the consideration of people. Pesticides are harmful chemicals used by Coca Cola in order to produce different flavoured beverages. Coca Cola may respond by declaring that they will instantly examine their quality of water used in their commodities. If pesticides existed there in water then Coca Cola will clear this allegation by taking steps which made water clean and safer for the people (Saini, 2014). Coca Cola should also give some compensation amount to farmers and the people of Plachimada.
First of all, it is necessary for Coke to understand the culture of India. It is necessary to make different advertisements on cultural occasions. The presentation of product is a key that makes a successful advertisement. In order to hit the target audience Coca Cola should make some changes in their advertisement strategies as other beverage companies PepsiCo etc. Celebrity endorsement is one of the strategies that can make the brand popular among the people. Coca Cola should introduce some famous film and TV celebrities in their advertisements in order to increase their business. India has limited water resources. So in order to provide water Coca Cola should involve in social activities like constructing wells and commence some efforts that reduce waste of water as PepsiCo did in past (Fitzpatrick, 2014).
Different countries have certain limited natural resources like water, gas etc. India is an agricultural country and water is the fundamental requirement of agriculture. Beverage Companies like Pepsi Co and Coca Cola should clearly understand the norms and rules of that area in which they want to operate. Cultural examination is also necessary for beverage companies. It gives an overview of the environment from which companies can predict the behaviour of people including cultural activities etc; in short companies can predict the demand in different time of year. This observation also provides different ideas of marketing as per the requirement. In advertisement campaigns, companies should incorporate different celebrities for better cultural exhibition. Water and land are essential for agricultural development and more than 70% of Indians are involved in activities related to agriculture. Water scarcity, soil and water pollution generated by Coca-Cola directly resulted in the breakdown of crops that affect thousands of people in India (Saini, 2014).
Fitzpatrick, C. (2014). INDIA: Authorities threaten to demolish Coca-Cola plant.
Saini, B. (2014). Rural Market in India as Challenges and Ways Ahead. International Journal of Innovative Research and Development, 3(1).