Thums Up (Allu Arjun) vs. Campa Cola (Ram Charan) : A New Chapter in India's Cola Wars"

Ram Chran

It is summer, and the Cola Wars are on! It has become a custom among cola companies that the battle for dominance automatically heats up whenever summer arrives. The sniping has already started this year, and it’s getting quite interesting.

Allu Arjun

Thums Up has brought in Allu Arjun as its brand ambassador and released some very exciting and energetic videos. Not to be left behind, Campa Cola has now signed Southern superstar Ram Charan as its spokesperson. Interestingly, this marks a first in the advertising industry — the same spokesperson is now being used for the entire country. The advertisements heavily bank on his star status and mimic his famous movie scenes from Magadheera and RRR.

Mahesh Babu 

Salman Khan

Earlier, brands used to appoint different film stars for different regions — a North Indian celebrity for North India, and a South Indian celebrity for South India. For example, during 2012–2013, this practice was quite common: Mahesh Babu for South India, and Salman Khan, later Shah Rukh Khan, for North India. 

Shah Rukh Khan 

Vijaya Devarakonda

Vishal

Sudeep

Thums Up has used Shah Rukh Khan for Hindi, Vijay Deverakonda for Telugu, and Kichcha Sudeep for Kannada. The strategy was clear — use celebrities who connect emotionally with people in their mother tongue ("Muzabaan").

But now, the shift is evident: the same film star is being used both for North and South India. This move shows the growing power of South Indian movies, especially Telugu cinema, and how Telugu film stars are now being recognized as true pan-India celebrities.

An interesting side point: There are strong rumours that Ram Charan and Allu Arjun do not see eye to eye, and that they don't get along very well. This rivalry is now amusingly reflected in their being selected as ambassadors for competing cola brands — Campa Cola and Thums Up, respectively.

Interestingly, Ram Charan is endorsing Campa Cola across India, whereas Thums Up continues with different endorsers in different languages (Shah Rukh Khan in Hindi and Allu Arjun in Telugu). Is this advantageous for Campa Cola or Thums Up? Only time will tell.

Chiranjeevi 

During the pesticide controversy in cola drinks that erupted in 2008, superstar Chiranjeevi took the moral high ground and declared that he would never endorse any cola brands. He refrained from being a spokesperson for Thums Up. Chiranjeevi already had political ambitions at that time and quit cola endorsements in 2008. Credit must be given to Chiranjeevi for standing by his principles — he never again endorsed any cola throughout his career.

However, times have changed. Ironically, about 17 years later, his own son (Ram Charan) is now endorsing a cola brand! Meanwhile, Telugu superstar Mahesh Babu had no such moral constraints and continued endorsing Thums Up — and even Bollywood's Salman Khan did the same. In the end, perhaps it’s all about the money. That's just how it is!!!

Marketing lesson for the day: Confused Cinema Celebrities! - Switch to active Life style (Protinex) from Thums Up. I AM CONFUSED!

I was having lunch and was watching Dookudu at the same time. An advertisement was being beamed during the break. And it had the Prince of Telugu cinema, Mahesh Babu propagating the virtues of a healthy drink “Protinex”. He went on to say that Protinex is very good for people and warned us all “Glibly” that other protein drinks that we are drinking are not good and that we should drink only Protinex.

“Wonderful, Prince”, I said to myself “very smart and very good. Till today you have been the brand ambassador of Thums Up and have been asking us or rather goading us all to drink Thumps Up and be adventurous. Now you are saying that other protein drinks are not good. What about soft drinks, especially Thumps Up? Does that mean that your earlier endorsement of Thums up was wrong, or is both good drinks good, and should we drink both drinks simultaneously”.

Oh Celebrity endorsers, have common sense. Your audience is watching and seeing the laughing stock that you are all becoming! Try to build a brand and a brand image that is long-lasting. Once you start endorsing all the products that approach you, your loyal fan base and even the general public will stop believing in you. It could be the death knell for the brands that you endorse!

A little too late - Ramesh Chauhan!

The Indian Press is agog with the news that Ramesh Chauhan the creator of soft drink brands like Thums Up, Limca and Gold spot will is back in action. And Ramesh Chauhan is banking on doing what he knows best – creating powerful long lasting brands that cock a snook at the global market leaders.

But is Ramesh Chauchan too late?  It is like shutting the stable after the horse has bolted. The biggest mistake that Ramesh Chauchan did in 1993 was to hive off Thums Up to Coke and that at a ridiculously low price of 40 crores.

The following are the reasons why I think Café Cuba (the new caffeinated cola from Parle) will not cut the ice with the customers.

The name is not very attractive. Café Cuba. It makes no sense at all. Why Café and why Cuba. And to think that Parle created iconic brand names like Thums Up, Gold Spot, and Limca ( still very ever green).

The American Cola giants are well entrenched and have strong brands. They do not have any unguarded flanks.

Let’s remember that Pepsi’s Atom and Pepsi AM a caffeinated cola drink did not do well.

Cola is a product category that is popular among the young people and I think that Coffee flavor or caffeinated cola will appeal to this demographic.

Things have changed and the present customers have no emotional connect with either Ramesh Chauhan or with the Brand Parle. It is just another company for them.

And the worst Café Cuba will have to compete with Thums Up and the loyal Thums Up customers may not easily move to a new brand.

Summers always bring the best out of the Cola giants and this summer will not be any different. Watch out for the sizzling hot action in the 30,000 to 35,000 crore chilled Indian cola market. Cafe Cuba expects to garner Rs 1,000 crore sale. May the best brand/s win!

Second Time lucky for Pepsi ? - Pepsi Atom Introduction after the Pepsi Maxx disaster

 

Pepsi did it again. On Thursday 25^th April 2013, Pepsi India introduced its second brand of Cola – Atom. Pepsi wants to cash in on the summer rush and also add weight to its product sales by piggybacking on the hype and popularity of the IPL cricket tournament. It believes it has a winner in hand – and its name Pepsi Atom.

Pepsi Atom will be available across the country in various packages including a 250 ml can at an introductory price of Rs 15 and a 500 ml PET bottle at Rs 25 and a  200 ml returnable glass bottles (RGB) which will be available in select markets at Rs 10.

Pepsi is sitting pretty in India. It outsells Coca-Cola but still Coca Cola sells better than Pepsi overall in the cola market as it has strong winners from the through bred winners that it bought over  from the competition.  These are the brands that Cola-Cola bought from Ramesh Chauhan of the Parle group – especially Thums Up. Thums Up is a out right winner. It outsells both Coke and Pepsi in India.

Pepsi must be kicking itself for not considering buying Thums up before Coca-Cola. They had all the chances. Pepsi moved into India the second time in 1989, four years before Coke. But the top guys at Pepsi must have felt that Thums up would pose a challenge to Pepsi itself. Whatever it was it proved to be a decisive mistake. Pepsi along with Thums Up would have sounded the death knell for Coca-Cola in India.

But that is all water under the bridge. Pepsi wants to counter Coca-Cola in all segments. It brought in Pepsi Maxx a zero calorie drink in August 2010 to counter Diet Coke and failed miserably. Now Peso is firing the next salvo.

Atom will be launched with a campaign and a tagline: “Piyo Josh Mein Jiyo Hosh Mein” and its endorser will be Bollywood actor Sushant Singh Rajput.

Pepsi is hedging Atom against Coca-Cola’s Thums up.  It is being positioned as a stronger, fizzier cola with a sharp taste. It is going to be a all-out war. The knives are out, already. Check out the words of Deepika Warrior, VP-President (beverage marketing) “the brand positioning redefines masculinity and portrays the modern Indian in a new light”

She goes on to say "The atom  campaign would be more relevant and projects relatable definition of masculinity as opposed to much hyped mindless action”

No prizes for guessing whom she meant by “much hyped mindless action (Thums Up!)”. Watch this space in the coming days for more action.