One of the options for Parle limited is to quickly negotiate with either Coca-Cola or Pepsi to see

wether it is possible to sell the Thums Up brand to either competitor.

Thums Up currently has an 85% market share in India with the majority of the share being loyal to

Thums Up. Overall Coca-Cola and Pepsi taste less sweet in comparison to Thums Up and therefore

we should not fail to realize that we have an extraordinary product.

Pros of selling thumbs up:

The risk involved is minimal

we would face absolutely no risks when selling the company completely. Something we do face when

choosing any other direction.

Capital will gain

Cons of selling thumbs up:

simply handing over network in India

We have something very valuable that both Coca-Cola and Pepsi do not have which is an incredibly

large network in India. By simply selling off the company to competitors, these networks would go

to waste, so a much more profitable deal can be made for both parties by not selling off the

company.

Missed opportunities for profit in the long-run

To explain this point I will move on to the next slide where i will go into further detail of our other

brands Limca and Gold Spot.

-By selling off the company completely we can use this capital to further invest in the branding of

Limca and Gold Spot but we will not be able to tap into the network of the giants pepsi and coca

cola. We will also run the risk that by selling off to coca cola, they will feel no obligation to not

introduce their similar drinks Sprite and Fanta. This creates more competition and will work

counter-profitable.

-By forming an alliance between either pepsi or coca cola we can use their networks and capital to

promote Limca and Gold spot more in India, increase distribution and even move the brand across

borders. In the alliance agreement we can also state that the alliance partner is not allowed to

introduce a product in India that is similar to Limca or Gold Spot, thus creating a superior position

for these brands.

Therefore we as consultants say that it is not in our best interest to sell Thums Up to either Coca-Cola

or Pepsi, rather we should look at the opportunities to form an alliance with either one of these

competitors.

Our consultant Bart Staal will now go into further detail to discuss this option.

Thums Up Presentation

English for E&BE (EBP837B05)