Last week, Pepsi reignited its long-standing rivalry with Coca-Cola by taking a cheeky swipe at its competitor’s half-time campaign. With a bold front-page ad and the revival of its iconic tagline, ‘Yeh Dil Maange More’, Pepsi’s campaign took consumers on a nostalgic journey. Conceptualized by Havas Creative, the campaign mirrors the brand’s legendary 1996 marketing stunt, where it challenged Coca-Cola’s sponsorship of the ICC Cricket World Cup with the clever catchphrase, ‘Nothing Official About It’.

“For those who remember, ‘Nothing Official About It’ wasn’t just a campaign—it was a cultural moment,” stated PepsiCo India, signaling that its latest ad continues that legacy. The revival of these legendary marketing strategies comes at a time when the Indian cola market is experiencing intensified competition, driven largely by the resurgence of Campa Cola.

Reliance’s Aggressive Play with Campa Cola:

Experts suggest that the aggressive pricing strategy of Reliance-backed Campa Cola, which recently re-entered the market, is pushing legacy brands to up their game. Campa Cola’s Rs 10 pricing strategy, particularly in the energy drink segment, is forcing Coca-Cola and Pepsi to react.

For instance, Coca-Cola has slashed prices to Rs 15 for 250 ml packs in key markets like Kolkata to counter Campa Cola’s presence. Meanwhile, both Pepsi and Coca-Cola have introduced 400 ml bottles for Rs 20, effectively offering 150 ml free to attract value-conscious consumers. Analysts, however, question whether such aggressive pricing is sustainable in a low-margin business.

Adding to its market disruption, Reliance’s Campa Cola secured the IPL’s second most valuable sponsorship deal earlier this year, displacing Coca-Cola’s Thums Up with a Rs 200 crore investment. The move signals Reliance’s ambitions for pan-India dominance, having expanded Campa Cola’s availability from select regional markets to a nationwide presence.

Reports suggest that Campa Cola has already captured 10% of the carbonated beverage market in some states. Industry observers note that Reliance’s entry into the market is as disruptive as its ventures in telecom, retail, and e-commerce.

Pepsi and Coca-Cola Feel the Heat:

With Pepsi and Coca-Cola collectively controlling 85% of the cola market, Campa Cola’s resurgence is causing a shift. The carbonated soft drinks segment, valued at approximately $80 billion, includes a $20 billion cola market, where Coca-Cola currently leads Pepsi, largely due to the popularity of its homegrown brand, Thums Up.

Ankur Bisen, Senior Partner & Head, Consumer, Food & Retail at Technopak Advisors, emphasizes that this category thrives on high volumes and low margins. Since it is a cash cow business, maintaining volume sales is crucial. He notes that advertising remains a key survival strategy, particularly during peak seasons from March to June, which accounts for nearly 50% of annual sales.

The Battle of Pricing and Positioning:

The cola market’s history is filled with advertising duels, celebrity endorsements, and price wars. However, experts argue that Campa Cola’s revival has significantly intensified the rivalry. First launched in the 1970s, Campa Cola dominated the market until global brands re-entered India in the 1990s. Reliance revived the brand two years ago, starting in Andhra Pradesh and Telangana before expanding nationally.

Rajeev Nayar, Partner, Consumer Markets at KPMG India, believes that India’s cola market still has room for growth, as per capita consumption remains lower than the global average. He points out that the industry is evolving through new entrants, better pricing strategies, regionalized flavors, and digital marketing innovations.

Learning from Thums Up’s Success:

Market leader Thums Up has long maintained its strong brand positioning, and experts believe rival brands can learn from its success. Premkumar Iyer, COO of HAWK, Gozoop Group, explains that Indian consumers expect brands to be authentic, bold, and emotionally resonant. To remain competitive, he suggests that cola brands must focus on:

Hyper-localization: Regionalized campaigns connecting with local cultures, languages, and influencers.

Consistent branding: Making the brand bigger than the product, like Thums Up’s focus on strength and boldness.

Competitive pricing & packaging: Offering smaller, affordable packs like Rs 10 returnable glass bottles, appealing to price-sensitive consumers.

The Future of the Cola Market:

With Campa Cola’s resurgence, competitive pricing wars, and nostalgia-driven advertising, the cola wars are far from over. As brands leverage digital tools, data-driven marketing, and cultural moments, the market is set for a transformative phase.

With summer approaching, the stakes are even higher. Will Pepsi and Coca-Cola maintain their dominance, or will Campa Cola disrupt the industry further? One thing is certain—the battle for India’s cola market is just getting started.

Author: Ronak Rehal