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Wednesday, June 23, 2010

Would Pepsi be able to do what it desires, with Thumbs Up ?

Pepsi and Coke have again a new game to play, this time initiated by Pepsi though. Already the "Black Cola" is having maximum variants from both the companies, be it thumbs up, coke, diet coke from Coca Cola or Pepsi, Diet Pepsi from Pepsi. 

Pepsi is now ready to take on thumbs up, with launching Pepsi Max in India, a Cola variant already present globally. Though a low calorie diet, it would be positioned almost like thumps up, "A macho drink- with that extra fizz." 

As a consumer, what I feel is, with already with many different SKUs and variants present, majority of consumers' may not find variant or SKU of their first choice mostly. Its really head over heals, especially for a small or mid sized retailer, first to stock and then to place all variants of 'Fizz Drinks' with other so many sorts of other potables, in the fridge. 

Also, I am of the opinion that, with monsoon set to come, this is likely, not the right time for a new variant to make a big bang. I hope this effort of Pepsi, doesn't end up like its rival's failure of pissy tasting Marida-Apple Flavor which is almost absent from the market now. 




The article below about the LAUNCH is from Economic Times, Dated June 23, 2010

"PepsiCo To Launch Low-Calorie Cola Within A Month To Take On Market Leader Thums Up"


PEPSICO will throw a fresh challenge at Coca-Cola within a month or so by launching its second cola, Pepsi Max, which will be pitted against market leader Thums Up as a macho drink.
A low-calorie, no-sugar drink positioned as a macho adult brand, Pepsi Max is expected to hit shop shelves in the next four-five weeks, at least four people familiar with the development told ET.
Though a low-calorie drink, Max has consciously distanced itself from occupying a ‘diet’ positioning and instead has been promoted as a macho drink targeted mainly at males — a platform Thums Up has successfully occupied over the years to lead the Rs 8,000-crore fizzy drinks market by a significant margin.
A PepsiCo India spokesman neither confirmed nor denied the development, only stating that the company “would not comment on market speculation”. People close to the development, however, said PepsiCo wants to pit Max directly against rival Thums Up, originally created by Ramesh Chauhan over three decades back and later acquired by Coca-Cola India. “Besides attacking Thums Up, Pepsi Max could also crack open the lowcalorie colas market – till now a small category, and more associated with women,” said a business associate of PepsiCo, requesting anonymity. Despite diet versions of colas existing for more than a decade, the demand for it remains insignificant and occupies less than 5% of the total aerated drinks market. “The diet cola category is yet to be cracked open in India, mainly because diets come with a taste challenge – they taste different so are not very well received by Indian consumers,” the person said. “Max could fill that gap since it does not contain ingredients of a diet cola and yet is a low-calorie drink,” he added.
Pepsi Max, sold in more than 40 countries, will be available in bottles and PET cans and it will be competitively priced, the sources said.
While PepsiCo may want its new cola to take on Thums Up, Coca-Cola may try to upset its plans by bringing in Pepsi Max’s global rival Coke Zero, a sugar-free cola. Coca-Cola is testing out the potential of Coke Zero in the domestic market, a person close to the world’s largest beverages firm said. Indirect imports of Coke Zero are already available in stores.
India is a key market for cola companies and has been clocking quarterly growth rates in excess of 20%. The country, in fact, has come to the rescue of Coca-Cola and PepsiCo, which are facing stagnant sales in their home market, the US. Till now, all three cola brands available in the country are promoted differently. Thums Up is advertised as a brand associated with dare devilry while second-ranked Pepsi is promoted as a ‘youth’ brand. Coca-Cola tries to occupy the ‘family’ platform.
In an attempt to shake the stranglehold of Thums Up early last year, PepsiCo had added more fizz to its cola brand in Andhra Pradesh (AP) — a traditional bastion of Thums Up which has a dominant 80%-plus share among colas in the state