Reliance Industries, through its FMCG arm Reliance Consumer Products Ltd (RCPL), is making a bold entry into India’s competitive beverage market with the revival of Campa Cola. Once a household name, Campa Cola is now positioning itself as a strong contender to global giants like Coca-Cola and PepsiCo, leveraging Reliance’s financial muscle and vast distribution network.
Aggressive Pricing Strategy
Campa Cola’s pricing strategy has shaken up the industry. By offering retailers higher margins, particularly on its Rs 10 pack, Reliance has forced competitors to rethink their pricing models. The company’s focus on aligning with local retailers, such as kirana stores, has helped secure prime shelf space across India’s fragmented retail sector. This approach gives Reliance a competitive edge in expanding its market presence.
Tata’s Response to the Disruption
Tata Consumer Products, offering Tata Gluco Plus, had to revise its prices after Reliance’s aggressive pricing tactics. Initially, Tata charged 30% more than competitors but was forced to adjust its pricing structure to maintain market share, highlighting Campa Cola’s growing influence.
Capturing the Festive Market
During the Durga Puja festivities, Reliance offered Campa Cola at unbeatable prices, with 200 ml and 500 ml bottles priced at Rs 10 and Rs 20, respectively. This pricing strategy appealed to budget-conscious consumers in both urban and rural markets, giving Reliance a strong foothold.
Nostalgia and Local Appeal
Campa Cola is also capitalizing on nostalgia, positioning itself as a homegrown alternative to Coca-Cola and PepsiCo. With Reliance’s extensive retail presence, including Reliance Fresh and Jiomart, Campa Cola is rapidly gaining traction.
A Serious Threat to Coca-Cola and PepsiCo
With plans to invest up to Rs 700 crore in bottling plants, Reliance is poised to scale Campa Cola and capture a significant share of India’s $4.6 billion soft drink market, posing a serious challenge to its global competitors.
