In 1993, India lost the Cola Wars to Coca-Cola & Pepsi
But now, Ambani is about to rewrite history with Campa Cola
Both Coke & Pepsi are dead scared that this might turn out to be a Jio moment for soft drinks in India
Here's how Campa will emerge victorious with its comeback:
But now, Ambani is about to rewrite history with Campa Cola
Both Coke & Pepsi are dead scared that this might turn out to be a Jio moment for soft drinks in India
Here's how Campa will emerge victorious with its comeback:
Last year, Mukesh Ambani acquired Campa Cola for mere ₹22 crores.
And Reliance Consumer Products (RCPL) was planning to relaunch it by Diwali, but now they have strategically timed the release around the IPL.
Campa will be seen as the “pouring partner” for 3 IPL teams!
And Reliance Consumer Products (RCPL) was planning to relaunch it by Diwali, but now they have strategically timed the release around the IPL.
Campa will be seen as the “pouring partner” for 3 IPL teams!
All this will become clearer as we go into this season of the IPL.
The company is in talks to acquire many other homegrown brands such as Garden Namkeens, Lahori Zeera & Bindu Beverages.
It’s a part of Reliance's strategy to scale up and focus on the ever-growing FMCG business.
The company is in talks to acquire many other homegrown brands such as Garden Namkeens, Lahori Zeera & Bindu Beverages.
It’s a part of Reliance's strategy to scale up and focus on the ever-growing FMCG business.
But speaking of Campa, the Indian soft drink demand is at a 5-year-high but it's an extremely saturated segment
— with Coca-Cola and PepsiCo having combined market share of 91%!
So, will Campa truly be able to take on these giants?
— with Coca-Cola and PepsiCo having combined market share of 91%!
So, will Campa truly be able to take on these giants?
If we try to understand fundamentally, for a new brand to come up in such a competitive market it needs to lower the price and move fast with distribution.
Lowering the price leads to lowering the entry barrier for tasting.
Unless people taste it, they won’t go ahead with it.
Lowering the price leads to lowering the entry barrier for tasting.
Unless people taste it, they won’t go ahead with it.
In an interview to ET Now, Harish Bijoor explained that typically you need to taste a new cola 8 consequent times on a day-to-day basis to become a fan of that taste.
This is basically a reference to the MERE EXPOSURE EFFECT.
This is basically a reference to the MERE EXPOSURE EFFECT.
It is a psychological effect in which you start preferring something just because you’re familiar with it.
But it’s not that simple. To hit the mark where mere exposure effect kicks in, you need
👉 solid marketing + branding to make consumers taste it 8 times,
But it’s not that simple. To hit the mark where mere exposure effect kicks in, you need
👉 solid marketing + branding to make consumers taste it 8 times,
👉 a lot of discounting to reduce the entry barrier for tasting, and
👉 a crazy distribution across the country to reach to them where they can easily access it again and again.
And that is why Coke and Pepsi are in such a strong position against Campa.
👉 a crazy distribution across the country to reach to them where they can easily access it again and again.
And that is why Coke and Pepsi are in such a strong position against Campa.
In fact, Coke and Pepsi have the experience of defeating Campa.
See, when Coca-Cola entered India in 1950, Pure Drinks was its sole licensed manufacturer & distributor.
However, Coke was at a crossroads when the govt asked it to reduce its ownership stake in the Indian entity.
See, when Coca-Cola entered India in 1950, Pure Drinks was its sole licensed manufacturer & distributor.
However, Coke was at a crossroads when the govt asked it to reduce its ownership stake in the Indian entity.
Or else it would have to reveal the secret drink formula.
Coke protested against this & left India in ‘77.
To celebrate Coke’s exit and the end of “The Emergency”, the Indian govt (Janata Party) launched its own soft drink brand called "Double Seven".
Socialist much?
Coke protested against this & left India in ‘77.
To celebrate Coke’s exit and the end of “The Emergency”, the Indian govt (Janata Party) launched its own soft drink brand called "Double Seven".
Socialist much?
After the failure of Double Seven, govt approached Pure Drinks for a partnership.
But Pure Drinks had its own ambitions and launched Campa-Cola that year.
Campa had some very big shoes to fill and it succeeded.
You see, people were addicted to Coke and rejected Double Seven.
But Pure Drinks had its own ambitions and launched Campa-Cola that year.
Campa had some very big shoes to fill and it succeeded.
You see, people were addicted to Coke and rejected Double Seven.
Campa quenched this thirst.
It imitated Coca-Cola’s branding and taste to a great extent.
However, its taste wasn’t the only thing that appealed to people.
Their marketing strategy struck the right chords in the hearts of consumers.
It imitated Coca-Cola’s branding and taste to a great extent.
However, its taste wasn’t the only thing that appealed to people.
Their marketing strategy struck the right chords in the hearts of consumers.
India was going through multiple crises and soft drinks were an affordable luxury for them.
“Campa-Cola times” signified the celebration of life in this period of political turmoil.
“We’re all in it together for the fun of it, for the taste of it” — was their punchline.
“Campa-Cola times” signified the celebration of life in this period of political turmoil.
“We’re all in it together for the fun of it, for the taste of it” — was their punchline.
The brand also positioned itself as “The Great Indian Taste” to reflect nationalism and pride.
It soon became a household name and ruled the Indian market in the 80s and 90s.
People booked 100s of crates for parties and loads of students toured “The Campa” factory every day.
It soon became a household name and ruled the Indian market in the 80s and 90s.
People booked 100s of crates for parties and loads of students toured “The Campa” factory every day.
Campa was sold nationwide in 5 flavors — Cola, Orange, Lemon, Mango, and Jeera Masala.
Its only competition at the time were the Parle soft drinks — Thums Up, Limca, and Gold Spot.
Both these desi soft drink companies were thriving and dominated the Indian market.
Its only competition at the time were the Parle soft drinks — Thums Up, Limca, and Gold Spot.
Both these desi soft drink companies were thriving and dominated the Indian market.
But Campa’s success was short-lived & went downhill after liberalization in ‘91.
See, India was going through the worst economic crisis in the 80s due to a huge fiscal deficit (which led to liberalization).
And many MNCs were trying to enter this lucrative and untapped market.
See, India was going through the worst economic crisis in the 80s due to a huge fiscal deficit (which led to liberalization).
And many MNCs were trying to enter this lucrative and untapped market.
But until ‘91, it was extremely difficult for them to operate effectively because of the Foreign Exchange Regulation Act (FERA).
Only PepsiCo succeeded by creating a joint venture with the Punjab government in ‘88.
Only PepsiCo succeeded by creating a joint venture with the Punjab government in ‘88.
Now, liberalization enabled MNCs like PepsiCo to increase their investment in India.
This posed a threat for the local cola brands & they opposed the entry of foreign brands.
The final nail in the coffin for them was Coca-Cola’s re-entry in ‘93 and people welcoming it again.
This posed a threat for the local cola brands & they opposed the entry of foreign brands.
The final nail in the coffin for them was Coca-Cola’s re-entry in ‘93 and people welcoming it again.
Even Parle sold most of its soft drink brands to Coke that year, which further strengthened its market position.
Moreover, Coke & Pepsi’s global rivalry has shaped their cutthroat marketing tactics which prevailed in India & their market share has only increased over the years.
Moreover, Coke & Pepsi’s global rivalry has shaped their cutthroat marketing tactics which prevailed in India & their market share has only increased over the years.
The two century-old powerhouses clearly had an upper hand.
So, with Coke and Pepsi’s rising popularity, Campa’s declined and led to its slow death.
The company shut down its bottling plants by ‘01 and has since tried to revive Campa several times with no success.
So, with Coke and Pepsi’s rising popularity, Campa’s declined and led to its slow death.
The company shut down its bottling plants by ‘01 and has since tried to revive Campa several times with no success.
Then why do we think that Reliance can revive Campa and defeat Coke and Pepsi this time? Because —
👉 Reliance has the capability of marketing and branding it well.
Leveraging nostalgia can help build brand loyalty as a result of the consumers feeling connectedness.
👉 Reliance has the capability of marketing and branding it well.
Leveraging nostalgia can help build brand loyalty as a result of the consumers feeling connectedness.
Campa Cola still holds a nostalgic value & nationalistic sentiment for people who grew up with the brand.
And this sentiment may affect cola decisions because lately, people’s affinity for aspirational foreign brands has been fading.
So, they won't mind buying something Indian.
And this sentiment may affect cola decisions because lately, people’s affinity for aspirational foreign brands has been fading.
So, they won't mind buying something Indian.
Provided they get the taste right.
👉 Reliance can bear the costs of reducing the prices to make people taste it again and again.
👉 And most importantly, Reliance owns the biggest retail distribution in the country with Reliance Retail.
👉 Reliance can bear the costs of reducing the prices to make people taste it again and again.
👉 And most importantly, Reliance owns the biggest retail distribution in the country with Reliance Retail.
It has access to 200M registered customers & 500M people visit its stores every year.
And they also own a huge online distribution with JioMart which had 6 lakh orders per day across 262 cities in India last year.
Lastly, most of their fulfilment centres are kirana stores.
And they also own a huge online distribution with JioMart which had 6 lakh orders per day across 262 cities in India last year.
Lastly, most of their fulfilment centres are kirana stores.
Imagine how much distribution they directly own across the country.
So, distribution won’t be a hassle for them.
Cherry on top — with IPL on JioCinema for the next 5 years, Reliance will own the largest digital distribution.
So, distribution won’t be a hassle for them.
Cherry on top — with IPL on JioCinema for the next 5 years, Reliance will own the largest digital distribution.
And since they’ve made IPL streaming free this year, people will get exposure to the Campa brand.
In fact, experts are predicting an increase in IPL viewership from 330 million last year to 550 million this year!
In fact, experts are predicting an increase in IPL viewership from 330 million last year to 550 million this year!
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