Well known, the biggest beverage company in India has now resurrected the old brands Campa Cola. These were so mass produced that any brand can feel envious of them among the Indian youth in the 80’s and 90’s. And at least now, Reliance seems very serious about grabbing regional market shares with a good aggressive strategy of Campa Cola, making big noises in the Coca Cola and Pepsi duo which is treated as a monopoly, creating more vocal mouths of competition by marketing activity.
Campa Cola Rises: Reliance’s Game Plan
It is the first time that the conglomerate has ventured into domination of the carbonated beverage market, as its acquisition of Campa Cola last year marked. Since then, there has been a good revival of the brand at the stores, and competition has been strictly on the prices. For example, a 2-litre bottle of Campa Cola’s lemon flavor is pegged at Rs 53 on quick commerce platforms while a leading competitor is retailing at Rs 74. Again, it’s all about pricing disruption as Reliance looks to recreate the Jio magic in the beverages market
This allows the company to gain much easier access to consumers due to its better trade margins being offered to retailers in comparison with Coca-Cola and Pepsi, which has, over a period of time increased their distribution, mainly because there is a wide consumption scope in tier-2 and tier-3 markets where, in order to garner some foothold, is definitely in the hands of a mammoth retail network. Here follows the impact of soft drinks as an industry.
Reappearance of Campa Cola is making Pepsi and Coca-Cola shift gear. As per sources both the brands are considering bringing low priced drinks to offset Campa’s swelling, especially in local markets, said analysts. There could be increased advertising and promotion campaigns due to rising competition to lose not market share.
Devangshu Dutta, founder of ThirdEyesight, says that Indian consumers are sensitive to price and can shift their loyalty very easily, so it becomes an opportunity for Reliance with the same. Lloyd Mathias, independent business strategist, says Reliance has its strong grip in both the areas of distribution and media and these would really boost up Campa Cola in terms of visibility. According to him, aggressive strategies from these will propel soft drink category with big bang in the following year.
The Festive Season Push
As the festive season approaches, Reliance is well-positioned to cash in on uptick in consumer spends. In its Q2FY25 earnings call, the company said that Campa Cola and the rest of its consumer brand are witnessing an amazing growth rate. General trade for it clocked a 250 percent year-on-year growth. Using e-commerce and quick-commerce platforms will only add momentum to this brand loyalty across India
Smaller players feeling the pinch
Pepsi and Coca-Cola are responding as the tide of Campa Cola gains momentum. Smaller regional soft-drink companies are going to feel the heat. As Campa Cola is promoting its soft drinks at almost all levels of the economy, there’s a possibility it will gain market share against local soft-drink producers who also operate in nearly the same price range- particularly at the local market level.
But for smaller competitors of Campas like him, says Saurabh Munjal, the CEO of Archian Foods-which does Lahori Zeera-the impact may not have hit them yet. “Campa Cola will be concentrating on traditional carbonated variants. In terms of our product, Lahori Zeera, there is a different kind of consumer for it. What we have is an altered flavour, so that space doesn’t have much confrontation with Campa yet, he claims.
Game-Changing Disruption
Reintroduction of Campa Cola has already created ripples in the Indian soft drink market. With Reliance’s huge financial strength, large retail network, and enormous marketing capabilities, Campa Cola appears well set to make a strong foray in the market. With other players also upping their marketing to sustain their market share, it could be an interesting time for new launches and campaigns, which may make 2025 a watershed year for the Indian beverage sector.
Stay tuned to ibizznews for more updates.
