“According to the latest data compiled by A C Neilsen. Thums Up, an Indian brand that was sold to Coca-Cola (in 1993), retains the top slot of the most selling carbonated drink in India: AC Nilesen study, April, 2009.”
When they re-entered India in 1993, the challenges were very different. They had to build the market from scratch, which was dominated at that time by a number of local brands. Pepsi had entered somewhat earlier in 1989 and Lehar Pepsi had started making some waves. Coca Cola’s ingenuity at that time was to hit the home run in one go, when they acquired Parle’s brands, Thums Up, Gold Spot and Limca for $40 million. It is said that Coca Cola ultimately wanted to kill Thums Up but failed miserably. But strategically, Thums Up proved to be an excellent brand for them. It still remains the soft drink of choice in the Indian market. Besides, it also helped them launch a flank attack against Pepsi. “Thums Up was added to Coca-Cola portfolio in 1993. During this period, it moved towards a more individualistic masculine positioning in ‘I want my Thunder’. In 2002, Akshay Kumar was roped in as the brand ambassador and the brand continued to strengthen its position as a Male Iconic Brand through consistent positioning,” explains Kashmira Chadha, Director, Marketing, Coca-Cola India to B&E.
It has been a virtual duopoly in the Indian market, as both struggled to go one up on sponsorships, promotions, celebrity endorsements, distribution reach, product adaptations, et al. People would remember many instances – like the Nothing Official About It campaign by Pepsi (1996 Cricket World Cup), or more recently, Coca Cola sponsoring the Delhi Dare Devils and Kolkata Knight Riders teams, which got Pepsi in a tizzy (as team players Virender Sehwag & Ishant Sharma are Pepsi brand ambassadors). One of the interesting ploys on the product front was the Rs.5 Coca Cola bottle for rural areas. The strategy was clicking well, but Coca Cola ultimately withdrew it due to the hit it was taking on margins. But Coca Cola has turned corners after years of struggle (it is now profitable in India). The company recorded a growth of 29% in India for the quarter ended June 2009. Muhtar Kent, Chairman & CEO, Coca Cola, admits “Our investments in key growth markets contributed to the good performance in China, Mexico, India and Brazil (despite tough global economic conditions).
When they re-entered India in 1993, the challenges were very different. They had to build the market from scratch, which was dominated at that time by a number of local brands. Pepsi had entered somewhat earlier in 1989 and Lehar Pepsi had started making some waves. Coca Cola’s ingenuity at that time was to hit the home run in one go, when they acquired Parle’s brands, Thums Up, Gold Spot and Limca for $40 million. It is said that Coca Cola ultimately wanted to kill Thums Up but failed miserably. But strategically, Thums Up proved to be an excellent brand for them. It still remains the soft drink of choice in the Indian market. Besides, it also helped them launch a flank attack against Pepsi. “Thums Up was added to Coca-Cola portfolio in 1993. During this period, it moved towards a more individualistic masculine positioning in ‘I want my Thunder’. In 2002, Akshay Kumar was roped in as the brand ambassador and the brand continued to strengthen its position as a Male Iconic Brand through consistent positioning,” explains Kashmira Chadha, Director, Marketing, Coca-Cola India to B&E.
It has been a virtual duopoly in the Indian market, as both struggled to go one up on sponsorships, promotions, celebrity endorsements, distribution reach, product adaptations, et al. People would remember many instances – like the Nothing Official About It campaign by Pepsi (1996 Cricket World Cup), or more recently, Coca Cola sponsoring the Delhi Dare Devils and Kolkata Knight Riders teams, which got Pepsi in a tizzy (as team players Virender Sehwag & Ishant Sharma are Pepsi brand ambassadors). One of the interesting ploys on the product front was the Rs.5 Coca Cola bottle for rural areas. The strategy was clicking well, but Coca Cola ultimately withdrew it due to the hit it was taking on margins. But Coca Cola has turned corners after years of struggle (it is now profitable in India). The company recorded a growth of 29% in India for the quarter ended June 2009. Muhtar Kent, Chairman & CEO, Coca Cola, admits “Our investments in key growth markets contributed to the good performance in China, Mexico, India and Brazil (despite tough global economic conditions).
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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