Reliance to disrupt the Cola market with `Campa’

Reliance Consumer Products Ltd (RCPL), the consumer goods arm of Reliance Industries, has revived the Campa Cola brand, in a move that would disrupt the unchallenged Coca-Pepsi duopoly in the Indian soft drinks market.

Once the star in the Indian soft drinks market, Campa Cola was put to a slow death by the two foreign Cola giants. The relaunch of the Campa Cola brand is a challenge to not just the Cola brands but other soft drinks as well.

RCPL has started off with an aggressive pricing strategy, by offering Campa Cola base pack in a PET bottle for just Rs10.

The company is pushing the product with low consumer prices and higher dealer margins.

RCPL is making Campa Cola available at retail outlets at 10 and Rs20 per 200 and 500 ml bottles, respectively, against Rs40 for a 600 ml Pepsi or Coca-Cola bottle, making it pocket friendly.

The strategy is the same as in the case of Reliance’s telecom venture, Jio, which started off with the lowest price for data and voice calls coming free with the data pack. Prices will level off and merge with competitors later, but after securing enough market share.

Nostalgia apart, Campa Cola is a strong contender in the Indian soft drink market, and with aggressive marketing should be able to reclaim its lost market.

By offering higher retail margins, Campa Cola has already found acceptances inn stores where it started operations.

Campa Cola, however, is yet to reach several markets within the country. But the company is losing no time. It has started bottling plants across the country and is driving sales by making it available at affordable prices at melas and festivals. 

With Reliance’s financial clout and the ability of the group to quickly scale up operations, Campa expects to be firmly back in retail stores across the country.