The Campa Cola with its price ₹15 lower than Coca-Cola and PepsiCo across five different pack sizes have instigated the possibility of an antagonistic price war in the upcoming summer season.
Both Coca-Cola and PepsiCo have directed their teams to step up trade discounts, consumer promotions, and local marketing spending with immediate effect.
It is not possible to drop prices immediately- that requires approvals and aligning with bottling partners, plus there are inflationary pressures, so to neutralize the situation trade offers and promotions are being stepped up immediately.
Reliance Consumer Products, the fast-moving consumer goods arm of billionaire Mukesh Ambani’s Reliance Retail Ventures Ltd, announced the launch of the Campa brand in cola, lemon, and orange variants in Andhra Pradesh and Telangana, and it will soon roll out the products in other markets. Andhra is the single largest market for Coca-Cola-owned Thums Up, the country’s largest soft drink brand with a share of close to 20%.Whether or not there’s a long-term impact has to be seen, but initial consumer traction to Campa Cola is certain to play out. This is the first time Coca-Cola and PepsiCo are being challenged in India- a market they have dominated since the early 1990s. The emergence of more players in the market presents a great opportunity for further investments to develop the market and provide consumers with innovations that evolve the category and ultimately benefit them.