This summer, marketers dare to explore the non-cola territories. And Savreen Gadhoke & Surbhi Chawla dare to forecast the outcomes...

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You must have heard a wiseman say this long back: “Love is to the heart what summer is to cola companies...” Alright, I admit, I was the wiseman, but really, that line does make a world of commercial sense! Summers have set in with its usual severity. Scorching heat, temperature soaring above 40 degrees, horse-like sweat, parched throats – this is perhaps what most Indians associate summers with. And summers being the first love of cola companies, the age-old bloodbath known as cola-wars (of course between titans Coca-Cola India and PepsiCo India) continue this season too. A lot of brouhaha is doing rounds in the Indian cola industry. Ending its 13-year long association with King Khan, PepsiCo recently terminated its contract with the superstar. SRK’s IPL team, Knight Riders too dropped Pepsi from its portfolio of sponsors and signed Coca-Cola India’s Coke brand instead. But this newsy fight is passé and the war has moved a level up. Recently, Coca-Cola’s lemon-flavoured aerated drink, Sprite, zoomed past Pepsi (as per ACNielsen) and sat proud occupying the number two slot with 14.6% market share in soft drink sales in India. With Thums Up already at the top slot, Coca-Cola India reigns over the black cola market with a consolidated market share of 57.8% as compared to PepsiCo, which commands a much lower 35.6%. But, the fight will get more intense this time, as the brawl has moved beyond the obvious & into ‘non-cola’ territories.

Last fortnight, PepsiCo India launched Nimbooz, a non-fizzy lemon juice with no artificial flavours under its 7UP brand. Giving it competition is Parle Agro’s natural lemon juice, LMN. On the other hand, Coca-Cola India too extended its brand Fanta and launched fruit flavoured aerated soft drink, Fanta Apple. Hitherto, Parle Agro’s Appy Fizz was the lone player in this segment with a complete control over the market for fizzy apple drinks. As beverage companies demonstrate their fascination toward lemon and apple drinks, carbonated black cola drinks may take a back seat...

But why a sudden affinity toward fruit-based drinks? The Indian consumers have, over the years, grown to be more health-conscious. With increased awareness about harms caused by the consumption of carbonated cola drinks, the consumers are seemingly wary about their health. And quick to encash on this frenzy of health consciousness, marketers have flooded the market with their fruit-based drinks harping over the health-quotient of the drink. And the one who gets to eat the juicy market share in the end will be the winner of this fruity fight.

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Source : IIPM Editorial, 2009

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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DRAWING COMPARISONS

The Most Revolutionary Concept In Education PLANMAN CHE CENTRE FOR HIGHER EDUCATION, Supported by IIPM India’s Leading B-School

“In the western countries, it is the cable wire that also delivers broadband, and the companies should be looking at making use of the cable wire that is going in every household to make broadband popular,” informs, Sukanta Dey, President (Emerging Business), Tata Teleservices. It does sound as an innovative solution but is a misfit in the Indian context. “The cable broadband would require an integration of the broadband with the cable operators but as of now the cable sector itself is highly unorganised,” explains, Prashant Singhal, Telecommunications Leader, Ernst &Young. There are a great deal of synergies possible between cable and broadband as is seen in several developed markets where IPTV (a combination of these services) has gained much popularity. However, even though cable operators have fired all cylinders for market penetration, strangely broadband operators have remained numb. As a matter of fact even players like Sify and Hathway, which offer both broadband and cable while being around for quite some time, have not been able to do much in this direction. Apart from these there are BSNL and MTNL who are offering triple play services but the lack of awareness of their offerings ensures that there are no takers. The telecom market leader has just entered this arena with the launch of its IPTV (available only in Delhi) and it is expected that it would undertake some form of branding exercise in order to increase awareness. Sagar Mahableshwar, NCD, Redifusion Y&R, (agency for Airtel telecom service) reveals, “We are working on a campaign on broadband and it would be on air shortly.”

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2009

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
Detail of all IIPM branches
1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM Admission Detail
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM - Admission Procedure
IIPM, GURGAON
IIPM : EXECUTIVE EDUCATION