Happy Days Are Here Again For Thums Up, Limca

Coke may be the real thing, but Thums Up and Limca are still the Indian favourites. And after four years of eating and sleeping cricket, movies, et al, Coca-Cola India is now waking up to the latent power of its desi brands, with aggressive marketing campaigns planned for both in 1998.

Its a scenario the most die-hard brand-patriot would not have forecast in 1994. When the Atlanta-based soft drinks multinational bought out Ramesh Chauhans popular brands, the stage seemed set for Coke to resume its legendary rivalry with Pepsi in yet another country. Indian brands were expected to quietly fade away. Coca-Cola certainly seemed to think so, because it concentrated on pushing its own brand.

 

Only, somebody forgot to narrate the script to consumers, who insisted that they wanted their thunder. As a result, both Thums Up and Limca managed to bottle up the thoroughly bewildered competition.

Now, Donald Wilson Short, the new chief executive officer of Coca-Cola India, is set to provide belligerent back-up to his unlikely champions. Says Short: Thums Up and Limca are the two most popular soft drinks brand in India, especially in the western and southern parts. We have firmed up an aggressive marketing strategy to push these two brands in the domestic market.

The numbers certainly back Shorts strategy. Thums Up contributes over 40 per cent of Coca-Cola Indias turnover, while Limca accounts for another 17 per cent. Coke itself accounts for 23 per cent. The balance comes from Cokes other brands, including Fanta, Citra and Maaza.

So whats the gameplan for the two brands? In terms of advertising expenditure, Thums Up will be the numero uno brand for the company this year.

As much as 30-35 per cent of Coca-Cola Indias expenditure in 1998 will be devoted to promoting Thums Up. Limca too will command 15-18 per cent, marginally lower than the 20-25 per cent which will be spent on promoting Coke.

Coke is also reorienting its advertising strategy for the two brands. Limca, which was not advertised during the past four years in the electronic media, is now being promoted through a new campaign targeted at the younger generation, which urges the audience to Take it easy, have a Limca. Coca-Cola claims that the ad has already succeeded in boosting Limca sales.

Similarly, cricket as an advertising tool will no longer be limited to Coke. While Saurav Ganguly will continue to endorse Coke, Javagal Srinath will be used to help Thums Up get through consumers defences. Says Short: In the west and east, where Thums Up is popular, we will use cricket to promote this brand, while in the north and south it will be used to promote Coke.

Coke is not unduly worried by marketing gurus comments that the twin brand strategy could affect its main international brand. Asserts Short: Atlanta and we are clear. We will be absolutely comfortable if Thums Up is the number one brand for us in India in 2000. We will sell what the consumers want us to. The multinational has clearly demarcated the positioning of the two cola brands. Thums Up, with its high carbonation level and strong cola taste, will be targeted at macho adventure seekers. Coke, by contrast, will be positioned as a family drink.

The twin brand strategy will also help Coke play the pricing game against its competitors. The method is simple in the west and east, where Thums Up has a dominant marketshare, the multinational has the freedom to slash the price of Coke, which constitutes a minor share in the overall volume. A reverse strategy could be followed in the north and south, where Coke sells more than Thums Up.

Points out a senior executive: If we drop Coke prices, we wont bleed, since our volumes are very low. But Pepsi has only one brand and they will suffer if they try a similar tack. As Coca-Cola proceeds with its rediscovery of India, the fizz could soon be flying again in the countrys ultra-competitive cola market.