some time back, had initiated the first cola price war
by launching small 200ml packs priced at Rs 5. Now Pepsi
India has fired the first salvo and lowered the price
of its 300ml pack from Rs 8 to Rs 6.
say Coke India was able to reduce its prices from Rs 7
to Rs 5 last year because it acquired a big glass bottle
manufacturing facility, which enabled it to offer smaller
bottles at reduced prices.
on the other hand, valiantly though it is trying to keep
pace with Coke's price initiative, lacks such a facility
and is lagging behind in the 200ml segment.
Pepsi's main concern
at the moment is to try and slow down Coke's penetration
of the market with its 200ml packs and has chosen to focus
on the 300ml segment as it feels that with the advance
of summer, consumption of colas is bound to go up and
300ml packs will be more popular. Factoring this in, Pepsi
first brought down the price of the 300ml pack to Rs 8,
and then to Rs 6.
Pepsi is targeting
its 300ml packs at high-consumption markets like Delhi
and Mumbai for the coming summer months when demand will
start rising. Alongside the 300ml packs, the company is
also marketing 200ml bottles priced at Rs 5. The new price
points are being communicated to the consumers through
printed banners, truck-backs and point of sale merchandise.
analysts say the strategy will work out if 300ml at Rs
6 looks more attractive than 200ml for Rs 5. Otherwise
Pepsi may end up making huge losses as it has already
spent huge amounts on Cricket World Cup this year.
Soft drink sales
have been rising since last year and whatever be the outcome
of the price war, the way cola prices are headed the soft
drinks market is bound to get a boost.