Coca-Cola India has recently announced its strategy to maintain the price points of its entry-level packs, despite the expected competition from the relaunch of Campa Cola at cheaper price points this summer. While media reports have suggested that Coca-Cola has reduced the prices of some of its lowest stock-keeping units in select regions of India, a senior executive from the company has clarified that they have largely maintained the same prices since last year on all of their entry packs. This is in contrast to market expectations, which predicted that Coca-Cola would implement price cuts to counter the relaunch of Campa Cola.
The beverage sector in India is seeing strong momentum, and Coca-Cola India plans to introduce more packaging size options and price points to suit the needs of its consumers. Currently, Coca-Cola’s entry-level pack is priced at Rs 20 for a 250 ml polyethylene terephthalate (PET) bottle, while Campa’s 200ml PET bottle is priced at Rs 10. However, Coca-Cola India is expected to bring in more packaging size options and price points to compete with Campa Cola in the future.
Reliance Consumer Products, Owner Campa Cola, said, “The launch of this brand is in line with the company’s strategy to promote homegrown Indian brands that not only have a rich heritage but also boast a deep-rooted connect with Indian consumers due to their unique tastes and flavours.”
Reliance Consumer Products (RCPL) recently launched the Campa portfolio, which includes Campa Cola, Campa Lemon, and Campa Orange, in five pack sizes ranging from 200 to 2,000 ml. These pack sizes are available primarily in select key channels in most parts of India, and in general trade in Andhra Pradesh and Telangana. Campa Cola was popular in the 1970s and 80s before it fizzled out when Coca-Cola and Pepsico began to dominate the market.
Although the entry of new players in the market presents a great opportunity for market development and innovation, leading to benefits for consumers, some distributors are concerned about the potential for a price war between large companies. They fear that competition between these companies, leading to discounts and promotions, could hurt the margins of hundreds of thousands of distributors in the consumer beverages ecosystem. Despite this concern, Coca-Cola India is confident in its ability to maintain its position in the market and continue to provide quality products to its consumers.
