After shaking up soft drink market, Mukesh Ambani gets in ‘disruptive’ mode again as he offers double margins to distributors in…
In a significant development, Reliance Consumer Products (RCPL) is trying everything to shake up the consumer goods market with an aggressive pricing and distribution strategy. The company is offering distributors margins of 6-8%, nearly double the industry average, to drive sales of its grocery and daily essentials portfolio. The aggressive marketing strategy from Reliance not only positions RCPL brands as affordable alternatives to competitors but also intensifies the competition in India’s fast-moving consumer goods (FMCG) sector.
Reliance Chairman, Mukesh Ambani is spearheading the consumer division of RCPL, formulating fresh strategies to boost profit margins predominantly through local kirana stores. These small-scale retail outlets contribute to an immense 85-90% of total sales in small town markets. Meanwhile, the company’s presence on instant-commerce platforms remains relatively low-key.
RCPL has shifted its attention towards maximizing profits via classic retail channels, particularly local ‘kirana’ stores in tier-2 and smaller markets that make up for nearly 85% to 90% of their sales. The consumer segment of the company, under Mukesh Ambani’s leadership, isn’t notably seen on speedy online trade platforms.
Reliance Retail Ventures has a thriving FMCG wing that supplies a plethora of products. These include edible oils, staples and pulses, all available under the trusted Independence brand. Besides these, they also boast an array of products like the beauty-enhancing Glimmer soaps, health-conscious Puric hygiene soaps, delicious Alan Bugles snacks, and crunchy Snactac biscuits.
History of Campa Cola
Campa Cola is owned by the Pure Drinks Group which was founded by Mohan Singh in the 1970s, Campa Cola gained recognition and became a household name in India. Interestingly, Pure Drinks Group was also known for introducing the famous Coca-Cola soft-drink to India in 1949 and held exclusive distribution rights until the government’s nationalization process began.
How Mukesh Ambani is trying to revive Campa Cola
In a recent update, Campa Cola has disrupted the soft-drink market with its Rs 10 pack in a PET bottle, forcing its rivals to reduce their prices to retain market share. Getting into details of how Mukesh Ambani is trying to revive the venture, the company launched three variants—cola, orange, and lemon—available in select stores. Also, in the year 2023, Reliance Consumer Products Ltd (RCPL) announced the formal relaunch of the Campa brand.
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