Camps Cola's aggressive strategy against Cola and Thumps up
Well, Coca-Cola and Pepsi’s dominance in India is under threat from a 12 cent cola bagged by India’s richest man. Reliance Industries has achieved double digit market share in key regions barely two years after its relaunch. How is Ambani challenging the dominance of Coca-Cola and Pepsi in India? Mukesh Amani in Asia’s richest man has challenged the down dominance of Coca-Cola and Pepsi in India by a strategy he used across sectors across sectors that he’s present in which is through a disruptive pricing. He offers a 200ml bottle for 10 rupees which is about 12 cents. That’s roughly half of what Coca-Cola and Pepsi charge for similar slice sized bottles. That’s essentially brought in double digit market share for the giant in the two years that he’s been present in in the India market. Industry experts say that Coca-Cola and Pepsi’s Reliance has growth has come from Coca-Cola and Pepsi and that some market expansion might have also happened because of the low pricing that Reliance brings in. We know that India has more than a billion people. It is going to be a very important market for the two cola giants. Definitely India is becoming a strategic market for both cola giants Coca-Cola and Pepsi because partly because of the slowdown in its primary markets in the US be it due to the presence of GLP1 drugs. So for both these consumer companies which continue to see growth even as Amani’s presence comes in they’re going to be focusing heavily on the India market for Coca-Cola. India is their fifth largest market so far.
Is it the same strategy it brought to telecoms and media to the cola business? Definitely it’s the exact same strategy that Ambani has been using across his industries. In 2016, it disrupted the telecom sector with the entry of Jio which essentially offered free data to millions billions of Indians, right? And it’s now disrupted uh the media industry with the entry of Jio Hot Star which is their which is a essentially a rival to Netflix and Amazon. So here they’re disrupting the market with a with a very cheaply priced cola and India which is a very low disposable income economy 12 cents can Make or break difference for most of its consumers. That’s also caused Reliance’s entry has also caused some of its rivals including Coca-Cola and Pepsi to either cut prices or to bring in similarly priced newer variants. So that they can also get in on the game at 10 rupees or 12 cents. Some of its rival companies in India have had to readjust their retail network and as well as build more chilling equipment.