Case Study Of Campa Cola

Cola or Soda giants need to improve the thirst-quenching experience of people around the world especially in India with a potential market of over 17000 Crore Rupees. The per-capita consumption of Cola products in India is 14 bottles per year which is way lesser than the global average of 94. In India, Coke and Pepsi have a combined market share of around 95% directly or through franchisees, creating a duopoly situation. Campa Cola has a 1% share, and the rest is divided among local players.
Drying up of growth in the US and Europe owing to the economic slowdown and consumers turning away from sugary sodas towards healthier drinks such as tea, both the US firms see India as a key growth bastion as soft drink consumption in India is among the
Consumers not only drink cold beverages owing to its taste but there are several other factors that contribute to the sales of beverage in India. Like,
1) Range
The customer can vary from an individual to a whole big family. It is important for the companies to provide with all the sizes of bottles according to the requirement. Also the material and design of the bottles matter.
2) Components
People today are more aware than ever. They are more health conscious and don’t want to consume something that can play foul with their health. The trend is more towards the natural products. Consumers now want to weigh down their options to identify the components good or bad for their health. For example the level of sugar, aspartame or oil is significant.
3) Target Audience
It seems from the advertisements of both the beverage giants that they target audiences differently. Coke represents happiness and moments of joy, while it protects culture and maintains the status quo. Pepsi, on the other hand, creates culture and embraces individuality, where in leading an exciting life is important than leading a happy one.
4) Weather and other Environment related
Coca-Cola in 2012 had reduced the price of a 200 ml bottle from INR10 to INR8. The move was seen as to enter the price affected regions of India like semi-urban and rural. Also it was done at the onset of summer, which is considered as the busiest time for the companies as the requirement of soft drinks rises.
It was considered as the waiting time for how the market respond. Also, the company aimed to establish their brand as much as in Kirana stores in metro areas as in a neighbourhood supermarket. Watching this in line, it was seen that Pepsico also had started cutting prices in some markets.
Coca-Cola, being the leader in Indian market with approx. 51% market share, owes its success reason to Parle and Cadbury Schweppes by acquiring them. Pepsi entered the Indian domain by partnering with Lehar India.
Not just that both the companies compete each other over the issue of price, a cyber war was also introduced in 2005, when Pepsi introduced Pepsi Stuff and Coca-Cola retaliated with Cola Rewards. Both were the loyalty programs that give away prizes to the customers in exchange of bottle caps and submission of codes