Reliance Consumer Products Limited (Reliance Consumer) relaunched the iconic Indian carbonate brand Campa in March 2023, just in time for the hot Indian summer. The company is leveraging penetration pricing, high marketing expenditure, and its broad retail distribution network to bring Campa at par with the carbonate brands of multinational operators, Coca-Cola and PepsiCo, who dominate the US$18 billion Indian carbonates market, says GlobalData, a leading data and analytics company.
Following the acquisition of the Campa brand in August 2022, Reliance Group sold large SKUs of Campa through its Reliance Retail outlets. Reliance Consumer has now relaunched the product in five pack sizes: 200ml, 500ml, 600ml, 1 liter, and 2 liters. Campa was launched in three flavors: Cola, Lemon, and Orange to take on the most popular carbonate brands, including Coca-Cola, Pepsi Cola, Sprite, 7-Up, Fanta, and Mirinda.
Bobby Verghese, Consumer Analyst at GlobalData, comments: “Reliance Consumer is also taking on market heavyweights Coca-Cola and PepsiCo through competitive pricing. For instance, the introductory price for a 200ml SKU of Campa Cola is INR10 ($0.12) compared to INR20 ($0.24) for a 250ml SKU of Coca-Cola. Penetration pricing can boost Campa’s traction among the price-sensitive Indian masses, especially in the rural markets. The aggressive pricing will magnify the impact of the relaunch amid the cost-of-living crisis, as 68% of Indian consumers are extremely concerned about the impact of inflation on their household budget **.”
Francis Gabriel Godad, Business Development Manager, GlobalData India, adds: “Reliance Consumer also announced plans to launch an intensive marketing campaign at the Indian Premier League (IPL) 2023, a popular domestic cricket tournament with a viewership of over 200 million. Reliance’s branding activity during the event will thereby amplify Campa’s mass-market awareness in the cricket-loving nation. Moreover, as the official sponsor of the popular ‘Mumbai Indians’ IPL team, Reliance Group can rope in popular cricketers as brand ambassadors. This is a powerful marketing strategy given that endorsements by celebrities or organizations are an essential feature that 29% of Indians actively look for when purchasing products, according to GlobalData’s 2022 survey**.
“Campa’s brand nostalgic value among Gen X and the Millennial cohorts will also aid it in making a comeback. Similarly, as homegrown brands both Reliance and Campa can capitalize on the localism trend, which favors domestic brands. Reliance can also leverage its own offline retail and e-commerce stores to quickly narrow the gap with Coca-Cola and PepsiCo’s nationwide distribution networks and bolster Campa’s market penetration. In terms of pricing, Reliance Consumer can go toe-to-toe with multinational operators.”
Verghese concludes: “Campa’s relaunch is just another step in Reliance Consumer’s strategy to build its own consumer packaged goods brand, Independence. In the coming years, the company is expected to bring Campa and other acquired brands, including Lotus Chocolate’s Sosyo Hajoori confectionery, Maliban biscuits, and Good Life biscuits under the Independence umbrella brand”.
