INTERNATIONAL INSTITUTE OF

INFORMATION TECHNOLOGY

Presentation on
Anew Entry
Marketing Management

Credits
1. Priyanka Khar
2. Shabbir Tahasildar
3. Aniket Warange

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 ANEW ENTRY

Anew: adv. 1) again 2) in a different way.

• In context to the Marketing environment it refers to re-entrance of a company

in the market with a different marketing strategy.

• To Justify the above, we'll take the example of Coca-cola re-entering the
Indian market in 1996 after abandoning the same in 1977.

• The Foreign Exchange Regulation Act of 1973 (FERA), made it mandatory for
the foreign companies to dilute their share holdings to 40%. Instead of diluting its
share holdings to the required limit prescribed by the Act, Coco-Cola opted to
discontinue its operations in India.

• After liberalization, Coca-Cola re-entered the Indian markets, in 1996, with a

100% subsidiary of their own namely, "Hindustan Coca-cola Holdings Pvt.
Ltd.". This was possible because Coke committed to divest 49% of the share
holding to the Indian citizens, govt. and the Local companies.
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 Marketing Cola in India

• The post-liberalization period in India saw the come back of Cola, but Pepsi
had already taken up the Indian markets by entering into the JV with the Punjab-
Govt. owned Punjab Agro industrial Corporation (PAIC) and was marketed as
'Lehar Pepsi' until 1991.

• After having beaten by Pepsi a lot of times, the then CEO of Coca-Cola,
Douglas Draft, based on his mantra "Think local, Act local" set out a new
marketing strategy suitable for the Indian market.

• The foundation of this new strategy grounded brand positioning and marketing
communications in consumer insights, acknowledging that urban and rural India
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were two distinct markets on a variety of important dimensions.
 Marketing Cola in India

• In rural markets the task was to broaden the brand positioning as the soft
drink category was undeveloped, while in urban markets, the task was to narrow
the brand positioning by only focusing on differentiation through offering unique
features.

• Coca-Cola thus divided the Indian market into two designations: India A and
India B.

India A India B
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 The Indian Market Environment

“Life ho to Aisi”
“Thanda matlab Coca-Cola”
• India A: Coca-cola gave this designation to the market segment including
metropolitan areas and large towns, which represented 4% of the India's
Population at that time. This segment sought social bonding and celebrated their
economic freedoms. "Life ho to Aisi" (Life as it should be) was a successful and
relevant tagline coca-cola advertised to its audience.

• India B: "India B" included small towns and villages comprising the other 96%
of the India's population at that time. In order to make Coke affordable to the
masses staying in rural India, they launched the 200ml bottle priced only at Rs. 5
per bottle. "Thanda matlab Coca-Cola" thus appealed the population of this
segment.

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 Summary

• ANEW entry refers to returning of a company into the market with a different
marketing strategy.

• Events:

1973 1977 1980 1992 1996 1999

FERA Coke Walked Pepsi JV Liberalization Coke made anew FEMA
out PAIC entry

• Example of Coke: Coca-Cola’s marketing strategy in using the local

language proved successful thus pulling the local crowd towards it.

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Questions ?