Coca-Cola Forced to Cut Prices Amidst Campa's Rapid Rise: A Look at the Price War - Read Now

There was pressure on Coca-Cola also for its own survival because Campa, one brand by Mukesh Ambani, had proved a huge hurdle. It has now forced Coca-Cola to enter into a price battle in the carbonated soft drink market, cutting its prices to catch up with Campa's rising prowess.

Emergence of Campa
Camp, a Reliance Industries owned company, has been the trendsetter in the soft drink market by aggressive pricing. Mukesh Ambani's entry into the beverage market has attracted consumers as well as sent the prevailing market dynamics haywire. Campa is selling its products at a price that is much below the prices of Coca-Cola and Pepsi. This has caused a sea change in consumer preference.

Strategy Shift by Coca-Cola
As for that, Coca-Cola looks to drop the price of its 400 ml down to ₹25 from ₹25. A source close to the bottling company told ET Prime that a call has already been taken about dropping prices in markets in Tamil Nadu, Karnataka, and Kerala soon. It will not work for Coca Cola simply to repackage what's already in the marketplace. Instead, it plans on introducing new packs for this lower price point with some free extras 250ml and 150ml on top.

Impact of Price War
The soft drinks market is more competitive today than ever before, especially with the Coca-Cola development, which indicates the huge influence Campa has thrown on the pricing in general. Campa sells the 500 ml bottles at an unbelievable ₹20, so much so that it is driving Coca-Cola to reduce its rates very fast. The jarring difference in price that can be seen here—that is, the 2.25-liter bottle priced higher by Coca-Cola against the 2-liter by Campa—points toward the competition.

Their worry is that of 250 ml bottles at which they are selling ₹20 currently. They must clear it first before they launch their new 400 ml bottle which would be at a costlier price.

The Jio Effect
Mukesh Ambani is known for his disruptive business strategy, just like the launch of Jio, which made Indian telecom revolutionized with free services and at substantially cheaper prices. Giving unbeatable pricing, Jio became the market leader, making others to worry in changing their strategies. Now, the case is that Coca-Cola is also following the same, trying to reach the feet of Campa by low price model only.

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