Coca-Cola India Case Study

970 Words4 Pages
It has come to my attention that in the last couple weeks Coca-Cola India has come under fire with allegations that our soft drinks contain harmful pesticides. A local activist group called The Center for Science and Environment (CSE) issued a press release claiming that they had tested numerous samples of our product and that the amounts of pesticides surpassed the global standard. The CSE also took aim at our direct competitor, PepsiCo. The results of these allegations have been damaging. State government and Parliament have decided to investigate these accusations thoroughly. The validity of the CSE results has prompted our CEO to respond with the threat of legal recourse. PepsiCo. has filed a petition with the court questioning the CSE’s credibility. In the meantime, the sales of Coca-Cola have been banned, the value of the company has dropped, and more importantly consumers doubt the quality of the Coca-Cola brand. Coca-Cola needs to repair the reputation that we have in India immediately. It has taken us years to rebuild our brand in India after discontinuing our product in the late 70’s. These assertions could permanently abolish our reputation in this country, and we could lose more than US$1billion in investments. We are left with two choices, we could stay silent and hope that this will blow over as it did with our Kinley bottled water in 2003, or we could choose to address the matter at hand. We have an obligation to our company and our consumers to defend our product and the image of the Coca-Cola brand. Openly discussing the allegations with consumers will allow us to portray Coca-Cola in a better light than PepsiCo and come out unscathed. I do not feel that tarnishing PepsiCo. or throwing any of our competitors under the bus will benefit us in any way. Coca-Cola must stand strong and independently in our position. I believe that there
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