Reliance’s pricing strategy has always played a pivotal in company’s grand success and forced brands like Tata to reconsider their game plan.
The Mukesh Ambani-led Reliance Industries is all set to make a strong comeback into the Indian beverages market with the revival of its soft drink brand Campa Cola. Company’s fast-moving consumer goods (FMCG) arm Reliance Consumer Products Ltd (RCPL) is expected reintroduce the product in the Indian market soon. This will pose a serious challenge to already established brands like Coca-Cola and PepsiCo as the company is leveraging its vast financial strength and distribution network to disrupt the market.
According to the Economic Times report, Mukesh Ambani is putting in all his efforts to make this project a grand success. The Mukesh Ambani-owned company is also planning to implement an aggressive pricing strategy and higher margins for retailers.
Reliance’s pricing strategy has always played a pivotal in company’s grand success and forced brands like Tata to reconsider their game plan. Offering retailers significantly higher margins on its Rs 10 pack, Campa Cola has pushed competitors to reconsider their pricing models.
The company is also planning to align local retailers. By offering higher trade margins to local kirana stores and small retail outlets, Campa Cola has gained prime shelf space in the country’s fragmented retail sector. This strategy promises to expand its market presence across India.
As the festive season begins, the company has ramped up its marketing and distribution strategies. During the recent Durga Puja celebrations in West Bengal, Campa Cola took the spotlight with unbeatable pricing. While Coke and Pepsi sold their 600 ml bottles for Rs 40, Campa Cola attracted budget-conscious consumers by offering its 200 ml and 500 ml bottles at Rs 10 and Rs 20, respectively.
This lower pricing has resonated not only in urban centres but also in rural markets, where affordability plays a significant role in purchasing decisions. By offering products at nearly half the price of its competitors, Reliance is tapping into the price-sensitive regions of India, gaining a strong foothold in both urban and rural markets.