Coca-Cola In Recent Years, Georgia­based Coca­Cola Attempted to Reenter the Indian

question 107

Multiple Choice

Coca-Cola
In recent years, Georgia­based Coca­Cola attempted to reenter the Indian market. Coke 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, yet India has the fastest­growing demand for consumer products in the world. Coke's first attempt to enter the Indian market a decade earlier was plagued by gross mismanagement, and the company lost 20 billion Indian rupies. In that first attempt, Coke purchased Thumbs Up, the leading India-based carbonated soft drink. The company hoped to replace Thumbs Up with Coke, while maintaining the Thumbs Up distribution
strategy. For its return to the market, Coke built five plants, cut costly staff, revamped transport, and reduced the size and weight of bottles in order to increase a truck's carrying capacity. It also increased its number of distributors and dumped a global advertising campaign that proved irrelevant to the Indian market.
-Refer to Coca-Cola. The need for Coke to create a promotional strategy specifically targeted to the Indian market reflects a(n) ____.

• A) diversification strategy
• B) awareness of cultural differences
• C) desire to maintain a high contribution margin
• D) insular approach to strategy
• E) desire to maintain global consistency

---

Definitions:

Liabilities

Financial obligations or debts that a company owes to others, reflecting amounts that must be paid in the future.

Authorized Shares

The maximum number of shares a corporation is legally allowed to issue, as stipulated in its articles of incorporation.

Treasury Stock

Shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Cash Dividend

A share of a company's profits paid out to its shareholders in cash.