Mukesh Ambani, Asia’s richest man, is making waves in India’s soft drink market with Campa Cola, employing strategies that mirror his success with Reliance Jio. By introducing aggressive pricing, Campa Cola has sparked a price war, challenging industry giants Coca-Cola and PepsiCo to defend their market positions.
Campa Cola’s Aggressive Pricing
Reliance Industries, led by Mukesh Ambani, acquired Campa Cola in 2022 and relaunched the brand in 2023. With prices as low as Rs 10 for a 200ml bottle and Rs 20 for a 500ml bottle, Campa Cola has undercut competitors’ prices by nearly 50 per cent. This move has pressured Coca-Cola and PepsiCo to reduce prices and launch promotional offers to retain customers.
Market Disruption
Initially, Coca-Cola and PepsiCo faced minimal impact due to Campa Cola’s limited distribution. However, as Campa Cola expanded its reach, the aggressive pricing strategy disrupted the market. For instance, Coca-Cola introduced a 350ml bottle with 150ml free for Rs 20 to counter Campa Cola’s challenge.
Challenges for Smaller Players
Industry experts note that the price war could lead to market consolidation. Smaller players with limited financial resources may struggle to sustain operations amidst intense competition. This dynamic, driven by shifting consumer preferences and economic pressures, poses long-term implications for brand loyalty and market positioning.
A Proven Playbook
Mukesh Ambani’s approach with Campa Cola reflects the strategy that revolutionized India’s telecom sector with Reliance Jio. By leveraging aggressive pricing and deep financial backing, Reliance aims to revive the 50-year-old brand and position it as a formidable challenger to global giants in the soft drink market.
