Friday, April 27, 2012

War of the Colas - Fire in the hole for Mountain Dew

Who told it is easy to run a Cola company?


Coke and Pepsi are the DMK and ADMK of the Cola business. The war of brands between Pepsi and Coke is as old as the one between Tom and Jerry. Both are posting millions of dollars of profit every year. But, then have you read the first line? What makes it difficult to run a Cola company? Cola is served as the next best drink after water. 95% of Americans are Cola drinkers. Then where lies the risk?


Survival of every product is mainly based on the USP contribution to its consumer. Fact is that there is no basic USP attached with the Cola drinks. People could just go with the soda and breweries. Hence, the existence of a Cola company entirely depends on the brand management and advertising associated with it. Cola sales are directly proportional to the public mindset. They have to make the consumer believe that their drink is unique, which is not in fact! Downfall for the company, otherwise. As an added headache, when the chips are down, health activists will spread the awareness about the excess calories and potential hazards present in Cola. When the TRP rating is down and the people have nothing to chew, media will take the dusted issue of caffeine content present in Colas,  polish it and keep the shows going on. They will sponsor talk shows in which limelight guys will talk about the various side effects of Cola. Audience will end up comparing Cola with bleaching liquid. All such stuffs will be carried out till the commencement of the next important Cricket tour or the next polls and scams. Again, brand-angels like Aamir and MSD will repair the damage done by the media and the mentality of the people will change. Again. Oh wait. Who are these people? What makes them? Whatever offered to them makes them. And such an offer is decided mostly by the businessmen, not the activists.


In addition to the above mentioned foes, it is not so often we see one Cola company taking a dig at the other. Pepsi, the company which is named after the digestive enzyme Pepsin, is the first company to understand the potential risks associated with running a carbonated drinks company. They forayed into the FMCG sector long ago with products like Lays, Aquafina, Lipton and Quaker Oats. Coca Cola on the other hand has a wide portfolio of more than 3500 beverages in its pocket. 

Both are known for their long stand rivalry in advertising their products. One of the famous brand war has happened between Pepsi and Coke. I'll rate the one between Coke's Sprite and Pepsi's Mountain Dew as the second best. Mountain Dew appealed to the little adventurer hiding within every Indian. The brand projected itself as the contender of doing the impossible with no fear. In contrast, Sprite mocked the dare associated with Mountain Dew. It projected itself as the drink of people's clear senses. But, in the long run, it is the adventurer who will take over the Smart-Dude. Coke knew this so well. Hence, it decided to launch another cannon on its rival Mountain Dew. This time, it is not the Cool guy Sprite. But it opted for a rough and tough Thumps Up. Believe it or not, Thumps Up is the largest selling Cola drink in India. 

The difference between the themes of Mountain Dew and Thumps Up are so thin. In Mountain Dew, the adventure staged is projected as a result of their drink. In Thumps Up, the person is projected to go to any limits to possess their drink. Now, the latest move by Coke has diminished this thin difference. Now, Thumps Up joins the line of Mountain Dew, but with a little youth revolutionary flavor peppered all over it. Replacement of Akshay by Mahesh Babu and the drop of 'Taste the Thunder' slogan tells the whole story. Coke has got the strategy right in nailing the Mountain Dew's coffin. I feel, the double barreled pistol of Coke is enough to fire the PepsiCo. But Pepsi is not dumb either.


Health hazards. Media. People Mindset. Scorching rivals. Advertisements with costliest brand ambassadors. Brand dependency. 


Well, Who told it is easy to run a Cola company?


No comments:

Post a Comment