Recently, Pepsico India and Hindustan Coco Cola, the makers
of Mirinda and Fanta orange-flavoured drinks
dipped their hands into their global flavour repository
and launched new flavours. Both the companies chose to leverage
their existing brands Mirinda in the case
of Pepsico and Fanta in the case of Hindustan Coco
While Pepsico India introduced Mirinda brown apple,
Coca Cola on its part launched Fanta water melon and
Fanta green apple flavours. Further, both the companies
have plans to expand their product range in the segment.
But why have the two cola giants suddenly fallen in love
with fruit flavours, a market that is around Rs 200 crore
in size? Interestingly, both the companies launched their
new drinks in south India.
Responds Amit Jain, region operations director, Hindustan
Cola, "Last year, we relaunched Fanta and the
product registered an impressive growth of 30 per cent.
Further, the southern market is skewed towards flavoured
The other reason is the heat that is being turned on against
the cola giants by swadeshi' preachers who favour
fresh fruit juice/tender coconut to fizz drinks. As a matter
of fact, Kerala witnessed an agitation to protect coconut
farmers and the public started patronising tender coconuts
instead of artificially flavoured drinks like colas.
Agreeing with it, Mr Jain cites Hindustan Coca Cola's experience.
The company's cola sales in Kerala are not good despite
acquiring a new bottling plant there. According to him,
the company tested flavours like grape, peach, brown apple,
strawberry, etc., and finally zeroed in on green apple and
Will there be more offerings? "We will concretise our plans in
three months time," he answers. According to him, the company plans to sell around
45,000 cases of fruit-flavoured drinks during the first year of operations.
Speaking about promotions, he says the company will follow its existing strategy of using
all the media to reach people while retaining Fantas fun proposition. However, the
company will not be contracting any film stars to promote its new flavours.
Pricing is a strategy in the battle of bottles between
these two cola majors. Hindustan Coco Cola offers its
water melon and green apple drinks in 300 ml glass bottles
at Rs 8.50 per bottle while Mirinda Apple is available
in 200 ml bottle at Rs 6 per bottle. Pepsico India also
plans to offer Mirinda Apple in 300-ml glass and
500 ml PET bottles.
What will be interesting to note is the reaction of customers as fresh fruit juice/tender
coconut is available for a similar or lesser price. Happy marketing or Appy
marketing is what we should say?