of Colas, Hoftede & India

   Kasim Hussain writes an interesting and easy to read report on the connection of Coke (and Pepsi, for that matter), Hofstede’s work and the people/country/culture of India. Unfortunately, he doesn’t tie the dots together as much as I’d like (whoever he is, he would do well to get his papers proofread also).
   It seems we have similar avoidance and masculinity characteristics, but approaching this from the other side of the equation does not help much. The larger consideration is to throw out the American indexes and to anticipate how to address the key differences: power distance, individualism and long term planning. For example, Mr. Hussain did point out various issues in the face of market entry. However, he never even mentions Limka or Thumbs Up. These soft drink brands in India are what Coke and Pepsi are in the US; iconic, with strong loyalties. We saw what happened with New Coke in the US in 1985, and we’re not as fiercely loyal as India is.
   Really, if it wasn’t for the tenacity of throwing money at the brand establishment over time (long term outlook?) the US product would not have stood a chance. And by the way, consider the tastes. We are talking about two cola flavors that never existed before in a sub continent that knows spices more than most.
   Power distance had a push back based in colonialism, he posits (good), but that historical fact has no immediacy with Hofstede. This would be the power distance index (and analogously the individualism index); and given the differential one may imagine the Indian’s eventually made allowances for its more powerful friend the US (beverage companies). Isn’t this the opposite? Yes; and while both perspectives have a semblance of truth, both worthy of our consideration, the Hofstede angle was not developed in Mr. Hussain’s paper.
   So, did Coca Cola anticipate what it would go through in India? If it did not, and thoroughly, it wasted money (though it is imagined it can afford to waste; relatively). The margins on flavored water are ridiculous. I’m certain the answer is yes, they pre-understood thoroughly.
   The two most notables (in this writers knowledge set) vis-à-vis this whole Cola / India thing: [1] Coca Cola had some issues with drawing water some years back with one of its local bottling plants. The locals, who were experiencing a bit of draught took issue with the plant. Despite the fact that Coca Cola was drilling significantly deeper than the aquifer the villagers referred to, the company nonetheless worked with the locals to resolve beyond the relational issue and helped them resolve the larger issue. Coke does that well; and that’s the kind of thing that impresses Indians. [2] Have you noticed who heads up PepsiCo? Indra Nooyi, a 54 year old woman from the former Madras area (Chenai) of India. She achieved this rise after joining the company within 12 years. At this writing that was four years ago. Both her insights and symbolism went a long way in India for Pepsi.

Reference

Hussain, K. ([u/k]). untitled. Retrieved from Pacific Lutheran University:

   www.plu.edu/~hussaika/doc/coca-cola.doc