CAMPA COLA: CAN A HOME GROWN BRAND TAKE ON MNCS?- AN CASE STUDY BASED ANALYSIS

Abstract

The news, Mukesh Ambani-led Reliance Industries Limited (RIL) has acquired the famous Campa Cola brand from New Delhi-based Pure Drinks Group for an estimated amount of Rs 22 crore has stirred up a bout of nostalgia for the generation who grew up in India during the 80s. Interestingly enough, only one generation of Indians were deprived of the global cola brands – Coke and Pepsi, those who began to consume aerated soft drinks between the exile period of 1977 – 1991 [1]. When the foreign brands relaunched in India in the early 90s, Ramesh Chauhan of Thums Up fame sold out to Coke anticipating aggressive power flexing, global brand image, improved supply chain logistics omnificent of an MNC. But India of 1991 and India circa 2023 is a big difference. Today, Campa Cola has the backing of Reliance with deep pockets, experience of managing mega projects of global scale, world class operations and economies of scale, ability to engage in active price-wars and emerge successfully is a different ball game altogether [1]. Is Reliance trying to create a niche market with the generation (now in their 50s) as a market entry strategy or use its prior experience of cut-throat pricing and cross-subsidization to scale up the markets to international size through its retail business? Campa Cola has an even chance of success in its second innings. Can it turn the odds in its favour?