The need for Coca-Cola to create a promotional strategy that was specifically targeted to the Indian market reflects a(n):    A. insular approach to strategy  B. desire to maintain a high contribution margin  C. desire to maintain global consistency  D. diversification strategy  E. awareness of cultural differences

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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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.

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

 

 A. insular approach to strategy

 B. desire to maintain a high contribution margin

 C. desire to maintain global consistency

 D. diversification strategy

 E. awareness of cultural differences

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