Coke and Pepsi war intensifies

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Coca Cola is into the field challenging Pepsi which is keeping its bet on IPL Season 6 by spending on advertisements to the tune of Rs.150 crore. The competition includes the entry level price war, heavy advertising and market expansion plans. Coke is trying to take the competition to the turf of Pepsi by introducing a new pricing level of Rs. 8/- for its soft drinks at the national level. The Rs. 8/- pricing is for 400-ml PET bottles and it’s a clear strategy of the company to enter the small towns and increase its market there.

Themed around “Refreshment at 8”, the campaign is gaining a good response and i and the company is driving home the point about low price point strategy. On the other hand, Pepsi is showing its strength pumping in a whopping Rs.150-crore in IPL by adding its color and flavor. On an average, the company is expected to spend Rs. 3 crore per day for the 50-day tournament.

The company has grabbed the title sponsorship of IPL for 5 years for a price money of Rs. 400 crore and has also reportedly spent Rs. 60 crore to gain the title sponsorship. Branding experts are of the notion that high-decibel campaigns may alone not pave a way for brand success. Coca Cola says that the company is following a year round strategy rather than entering high-sounding campaigns only during the summer.

The trend is changing and the seasonality curves of the brands are seeing a dip. The companies are now trying to stick with reality. Coca Cola has relatively dropped its prices for 200ml bottles too. However, the company will continue selling brands such as Sprite and Thumps Up at Rs. 12 and Rs. 11.

The firm sounds positive about its new strategy and its time only to wait and watch who wins the game this time around..

 

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