Business Studies Project 2024-25

The reasons behind changes in the market of these

soft drink companies: Coca – Cola and Fanta in the

FIRST 4 PAGES
seventies (1970-80) to Thums up and Campa Cola in
the eighties (1980-90) to Pepsi and Coke in nineties
(1990-2000)
Index:
1. Introduction
2. The introduction of Coca – Cola and Fanta in India in the seventies.
3. Reasons of stopping the manufacturing of Coca – Cola and Fanta in India.
4. The introduction of Thums up and Campa cola in India.
5. Reasons of stopping the manufacturing of Thums up and Campa cola in India.
6. Re-entry of Coke and introduction of Pepsi in the Indian market.
7. Factors responsible for the change.
8. Leading brands and the company having the highest market share.
9. Different local brands venturing in the Indian market.
10. The survival and reasons of failure in competition with the international brands.
11. Other observations done
12. Conclusion
13. Bibliography
Introduction:
To be honest I chose this project because I was interested in the concept of business
environment and it seemed like an interesting matter to discuss and research about. It was also
because the sub-topic for my project ‘the reasons behind changes in the market of these soft drink
companies: Coca – Cola and Fanta in the seventies (1970-80) to Thums up and Campa Cola in the
eighties (1980-90) to Pepsi and Coke in nineties (1990-2000)’ did not have the need for a field visit as
it was a study of history. Because both my father and mother are always busy and don’t get time to
accompany me to the field visits. Hence this topic was in benefit for my situation. And this is the
reason I chose this project.

In today’s rapidly evolving business landscape, organizations must continuously innovate to

stay competitive. This project, titled "The reasons behind changes in the market of these soft drink
companies", is designed to state the primary objective, such as improving operational efficiency,
launching a new product, or entering a new market.

By analysing the business environments of the top soft drink companies of the particular
time periods, this project seeks to provide actionable insights that will state the expected impact,
such as driving growth, enhancing customer satisfaction, or increasing profitability.

Through a combination of briefly describe the methods or strategies used, like data analysis,
market research, or process optimization of the business environments, this project aims to deliver
the importance of understanding the business environment and its dimensions to achieve the
organisation's desired objectives or goals, positioning the company to take its lead in the soft drink
market of India.
 The introduction of Coca – Cola and Fanta in India in 1970:
Coca – Cola:
In the 1970s, Coca-Cola entered India, which was really a significant turn in the beverage
industry of that country. Being an international brand, Coca-Cola stood not only for an international
way of life but also for refreshment, and it clicked in the minds of Indian consumers. With growing
demand for carbonated soft drinks, entry into India was a part of a greater strategy focused on
emerging markets.

But the firm's experience in India during the seventies was a different matter altogether.
Driven by the spirit of economic nationalism, the Indian government began implementing stringent
laws on foreign firms. These pitted the Coca-Cola Company against Indian authorities, who wanted
to know the secret formula and dilute equity stake to meet new requirements. On its part, Coca-Cola
opted to withdraw from the Indian market in 1977.

COCA COLA LOG DRAWING The brand's exit notwithstanding, its initial entry had built up such momentum that
generated a demand for soft drinks which would, at a later stage, drive the growth of the industry in
the country. What happened with Coca-Cola in India in the seventies reflects how business capture
of foreign markets can get mired in complex situations and how global brands can retain an enduring
presence.

Fanta:
In the 1970s, Fanta was introduced into the Indian market as part of The Coca-Cola
Company's diversified beverage portfolio for the country. Touted as a refreshingly fun soft drink with
its lively flavours—its unmistakable orange flavour making it so highly recognizable—Fanta arrived to
pose a refreshing alternative to other soft drinks present at the time. With its colourful branding and
exuberance, Fanta soon attracted an eclectic following of Indian consumers, primarily from the
youth bracket.

The launch of Fanta in India was at a time of huge change in the country's beverage industry.
Among the pioneering international brands entering India, Fanta contributed to the diversification of
the soft drink market by bringing new tastes and preferences. However, the broad regulatory
challenges that The Coca-Cola Company faced and that later led to its withdrawal from India in 1977
also beleaguered the early journey of Fanta in the country.

Despite these odds, the launch of Fanta in the seventies built the bedrock for its cult
following in India years after. In due course, it would re-enter and join the league of soft drinks as
synonymous with fun, vibrancy, and youthful energy.
 Reasons of stopping the manufacturing of Coca – Cola and Fanta in India:
Coca-Cola:
Obviously, from 1977 onwards, Coca-Cola was not being manufactured in India. The reasons
were more on the regulatory-cum-political side. Following are the main reasons:

1. Compliance with FERA: It was in the mid-1970s that the act of FERA was brought out by the
Indian government to further tighten its control over foreign companies operating in India.
Under FERA, companies like Coca-Cola had to dilute their equity stake in their Indian operations

FANTA LOGO DRWING to 40%, effectively losing control to Indian entities. Well, Coca-Cola was not ready to accept this
provision, since this would reduce its holding in the Indian subsidiary considerably. Trade Secrets
Disclosure: The government of India insisted that Coca-Cola reveal its secret formula as part of
the regulatory requirements. To the company, this was an extremely well-guarded trade secret
at the core of its brand identity and its success worldwide. It would not give away such
confidential information, further irritating the government.
2. Economic Nationalism: The 1970s in India thus shelved amidst an aggressive wave of economic
nationalism, whereby the government promoted self-reliance and reduced foreign influence in a
plurality of important industries. This provided a setting in which it was hard to visualize foreign
companies doing business in India unless they conformed to stringent regulations that
encouraged local control and ownership.
3. Policy Environment: The general policy environment was being made increasingly hostile to
multinationals by the Government headed by Prime Minister Indira Gandhi. Her declared policy
was to protect domestic industries and reduce dependence on foreign capital and know-how.
This resulted in introducing policies that would make it difficult for foreign companies to
continue their operations in India.

These pressures led Coca-Cola to decide it was better to withdraw from India in 1977 rather
than bow to government demands. The absence of the company from India then continued for more
than a decade until it re-entered the country again in 1993, when India began the process of
liberalizing its economy.

Fanta:
Fanta production began phasing out from India in the year 1977, to some extent pressured
by the same factors of regulation and politics that pushed its parent company into the decision—the
Coca-Cola Company. The following are a few of the most prominent:

1. FERA: Like Coca-Cola, even Fanta came under the Indian government's law, Foreign Exchange
Regulation Act, passed in the mid-1970s. This act called for the foreign companies to reduce
their equity share in their Indian Subsidiaries to 40% therefore giving majority control to Indian
entities. Coca Cola Company was not about to do that since this would have altered the high
degree of control it had on operations in India.
2. Trade Secret: The government of India insisted that The Coca-Cola Company disclose the secret
formula so that it complied with the requirement of the regulation in India. Even though the
demand was on Coca-Cola, the effect was on all its products since it was targeting the secret
formula which included Fanta. It was decided against releasing that information because the
formula propriety, as well as the integrity of the brand, were matters that the company held
pretty close to its heart.
3. Economic Nationalism: In 1970s, India was on a path of economic nationalism when Indira
Gandhi headed as the prime minister. This was a period when the government perhaps
formulated policy thinking of reducing foreign control over its economy and or letting it be self-
reliant. It perhaps was increasingly hard for the transnational corporation like The Coca-Cola
 Company to continue its operations in foreign lands like India without losing control to its local
operatives.
4. Unified Exit Strategy: Given the fact that Fanta was a brand that belonged to The Coca-Cola
Company, its fortunes in India were organically linked with that of the parent brand. When Coca-
Cola decided to close its shop in India in 1977 on account of the regulatory hurdles, the
production and sale of Fanta too ceased to exist as a part of the strategy aimed at withdrawing
full operation from the country.

These internal and external pressures forced The Coca-Cola Company to call off its
operations in India in 1977 and eventually led them to phase out Fanta and other similar products
from their product line. It was only during the early 1990s, when the Indian economy was liberalized,
that the company and its brands, including Fanta, re-entered the Indian market.
 The introduction of Thums up and Campa cola in India in 1980:
Thums Up:
Thums Up was launched in India in 1977 after Coca-Cola had to withdraw from India owing
to regulatory upheaval. Thums Up was created by Ramesh Chauhan and his brothers of the Parle
Group, feeling that suddenly, there was a gap created by the departure of Coca-Cola, and it soon
became the national cola brand in India.

Thums Up was built as a brand representing a product that would cater to satisfying Indian
tastes—hence the stronger, spicier taste in comparison to other colas in the market at that time. The
rugged image of the brand was highly masculine, which clicked with the Indian youth in a great way.
Its unique taste, joined with its rigging marketing, soon made Thums Up one of the major share-
THUMS UP LOGO DRAWING holders in the Indian coke market.

This victory was so pronounced that when Coca-Cola planned its re-entry into India in the
year 1993, Coca-Cola desired to acquire the brand Thums Up from Parle. Yet, even after considering
it, the company planned to retain the robust consumer base it had built for Thums Up. Today, Thums
Up is the ruling cola brand in India with a taste different from others and a robust brand identity.

Campa Cola:
Campa Cola was born in India in the late 1970s with the express agenda of filling up space
vacated by Coca-Cola when it left Indian shore in 1977 in search of a local cola brand back home.
Sold by the Pure Drinks Group, which was its bottling partner once in India, Campa wielded the
appeal of an absolute pure entity from Day-1. Coke's exit was a blessing in disguise for Pure Drinks
because it gave Pure Drinks an opportunity to focus on the development of an indigenous brand of
colas that would serve the Indian consumer's interest better than any foreign flavour of cola.

More important, it opened up mass markets very soon for Campa Cola throughout the
length and breadth of the country, especially in small towns and cities. In short, it was refreshment
and a local-domestic alternative to international colas, which were fast replacing national drinks of
yore. Dimpled bottles and "The Great Indian Taste" kind of slogans had Campa Cola fabricating its
image as the symbol of Indian pride and self-reliance at a time when the country was well on its way
toward the lowest possible foreign influence, pushing the burgeoning of indigenous industries.

Besides being the flagship title of cola or its counterpart, Campa also came up with other
variants such as Campa Orange and Campa Lemon, which pretty much made the brand stronger. The
decade of the 1980s saw Campa Cola do pretty well and by then, it was an established name in the
soft drinks market in India.

With the liberalization of the Indian economy in the early 1990s and the re-entry of
international giants like Coke and Pepsi, Campa Cola began losing its ground. It could not stand the
blow of the local marketing and distribution networks for long and soon, declined against the waves
of competition.

For most Indians, though, whenever recalled, Cola Campa remains a classic instant evoke to
the age when home-grown commercial ventures could easily capture the consumer's imagination,
with stiff competition from overseas.
 Reasons of stopping the manufacturing of Thums up and Campa cola in India:
Thums Up:
In fact, Thums Up manufacture has never really stopped in India; it does happen to be one of
the largest selling Cola brands in the country. There have, however, been some very critical changes
over the years in relation to ownership and market position. Here's a brief about the key
developments:

1. Necessity of getting acquired by Coca-Cola: Thums Up was launched by the Parle Group in 1977,
and within a very short period from its launch, the company gained leadership in the Indian
market. When, in 1993, the Indian economy opened up, Coca-Cola again re-entered the market
and acquired Thums Up along with other brands of Parle viz., Limca and Gold Spot. Buying out
these brands was just a move to get rid of the immense pressure the competition posed and to
penetrate the Indian market at the earliest possible time.
2. Initial Phase-Out Attempts: After buying out the Thums Up brand, Coca-Cola initially tried to
phase out the brand and replace it with its main or flagship product, Coca-Cola. It was just a
matter of time before they recognized the reality that Thums Up has an extremely strong
consumer franchise in India. Since it was very different, with a stronger flavour as compared to
other brands that the Indian palette was more in sync with, it was hard to replace with Coca-
Cola.
3. Repositioning and Continued Manufacturing: Upon realizing the ever-growing popularity of the
brand, Coca-Cola continued to manufacture Thums Up and even revamped it with some new
campaigns. Therefore, Thums Up got re-positioned as a strong, adventurous drink, which is
continued to be prevalent even after Coca-Cola entered the market of India. Thums Up has
CAMPA COLA LOGO DRAWING remained one of the leading brands of Coca-Cola in India even at present.

Campa Cola:
The following are some of the reasons that led to the discontinuation of the manufacture of
Campa Cola amongst Indians during the early 2000s:

1. High Competition: The re-entry of some of the multinational cola giants like Coca Cola and Pepsi
in the Indian market since early 1990s had enhanced high competition. These international
brands not only had enormous marketing budgets but also boasted advanced distribution and
sale networks coupled with good brand saliency in the minds of consumers, which didn't make it
suitable for Campa Cola to venture an effective challenge.
2. Market Share Loss: Even as Coca-Cola and Pepsi went to town to popularize their brands and
widen their distribution network across the country, Campa Cola could not hold on much. The
global labels advertising and promotional efforts took precedence over Campa Cola and virtually
squeezed it out of the market place.
3. Changing Consumer Preferences: New flavours, innovations in packaging, and the marketing
strategies of international brands started changing consumer preferences. Now, when Campa
Cola, once a market leader, could not come up with many changes, it couldn't really find a place
for itself.
4. Operational Challenges: Prominent among the challenges were operational ones, inclusive of
those that corresponded to the scaling up of not only production but also distribution and
maintenance of quality standards. Having to compete with the efficiencies and scales that were
part of global operators was a very big problem for Campa Cola.
5. Financial Strain: The repetitively financial strain that follows such intense competition from
globally well-funded competitors is believed to have sapped the capabilities of the Campa Cola
brand of sustaining operations along with marketing. The expenditure involved in keeping up
and furthering the brand, marking fierce competition, might likely have been another reason for
discontinuing production.
 Re-entry of Coke and introduction of Pepsi in the Indian market in 1990:
Coke:
In 1993, Coca-Cola re-entered the Indian market after being absent for 16 years since its
operation was stopped in 1977 due to some problems related to regulation and political situations.
It was a very critical time for re-entry in the company itself as well as in the Indian beverage industry
as a whole. Very important aspects are summarized on the re-entry of Coca-Cola.

Major economic reforms effected in India on liberalization and deregulation were during the
beginning years of the 1990s. Some of these included removal of restrictions on foreign direct
investment, reduction in other regulatory barriers for the entry by international firms to be easy into
the Indian market.

Acquisition of Parle Brands: In its second coming, Coca-Cola acquired some of the most
popular brands of Parle Group like Thums Up, Limca, and Gold Spot. Through this acquisition, it
could establish itself in the market and make use of the existing brand equity very fast.
The company invested fast and aggressively in building a solid distribution infrastructure in India, in
modernizing its factories, and more. Otherwise, it would have been quite impossible to reach with
Coke across the length and breadth of India.

PEPSI LOGO DRAWING Marketing Strategy: Hard-core marketing and brand promotion were the only strategies
Coca-Cola had opted for at the time of its re-entry. It started massive advertising campaigns,
sponsored big-ticket events, and many more promotional activities in line to rekindle its products
with Indian consumers.

1. Local adaptation: Another strategy that was adapted by Coca-Cola is local adaptation, which is
the customization of taste and preference within the local market. This can be seen when the
company simply retained and promoted brands like Thums Up, which had good followers in
Indian consumers who like its taste, hence flavour, distinctively different from other brands in
the local market.
2. Regulatory Compliance: Unlike earlier years, this time the company was well-kitted to operate
within the new regulatory environment and, in the framework of economic liberalization, hence
find its way through in the regulatory environment.
3. Victorious re-entry of Coca-Cola into India: That heralded a new phase of growth. Today, with a
product line as varied as ever and very strong marketing presence, the company has established
itself as one of the largest players in the Indian beverage industry.

Pepsi:
Finally, in the year 1996, PepsiCo entered India. The company was launched into the market
thereafter. Indeed, the entry of Pepsi fell much within the expectations of Indian Economic
Liberalization taking place then-a salvaging ground for most foreign enterprises in finding a market
within the Indian frontiers. Here is a briefed overview of the entry of Pepsi into India:

1. Economic Liberalization: In the early 1990s, the then Union government of India carried out
economic reforms and opened the market to foreign investment, bringing in congenial
conditions for a company like PepsiCo to enter the Indian market and exploit it.
2. Joint Venture with Punjab Agro: When it entered the country, PepsiCo had formed a joint
venture with state-owned enterprise Punjab Agro Industries Corporation. That way, it became
easier to handle sensitivities of the business at the local level, and there was more flexibility in
terms of regulatory affairs. The JV was christened "PepsiCo India Holdings."
3. Brand Launch and Marketing: PepsiCo entered the market its premium product, Pepsi, along
with other beverages like Miranda and 7 Up. This brand launch, complemented by a high-voltage
advertisement campaign featuring the Bollywood stars of those times, came up with an idea that
generated interest among consumers.

Localization had respect for which products and marketing efforts needed to be localized
according to taste and preference, within Indian conditions. It includes flavour and packaging
adaptations according to this versatile and ever-changing market scenario of India.

The stream of investments was setting up the plants, the distribution network, and even the
bottling of plants all over India. All these investments were quite necessary for the revised supply
chain to be effective and efficient in planning.

Competitive Landscape The entry of PepsiCo into India evolved under a competitive business
landscape including the entrance of Coca-Cola in 1993. It was such real competition between them
that forced innovation and development of lucrative marketing strategies by both players to finally
provide choices for the consumers.

Subsequent entry made by PepsiCo into the Indian market has been followed by
consolidation as a big player. This is due to the fact that it has been able to make an elongation array
of the products and market areas by exploiting its brand power and embracing ways of
customization of the products to the local market.
Factors responsible for the change:
Introduction of Coca-Cola and Fanta in India in 1970
Forces:
1. Global Expansion Strategy: Coca-Cola was working on lines of expanding its footprint in
developing markets like India.
2. Growing Market Potential: as the Indian population was growing urban, and more cola was
in consumption. New opportunities led to getting Coca-Cola and Fanta
3. Local Franchisee: In the first place, Coca-Cola had entered through an arrangement with a local
bottler franchisee to take care of manufacturing and distribution.

There are reasons that made Coca-Cola and Fanta cease production in India.
Reasons:
1. Foreign Exchange Regulation Act, FERA: All the foreign companies were required to dilute their
equity and disclose their trade secrets as per the Indian requirements. These stringent
requirements were a blessing for Coca-Cola's excuse to exit.
2. Economic Nationalism: The Indian government, in the 1970s, took up self-reliance as the key
policy, and reduced the role of foreigners in the execution of business matters. The foreign
companies had been at the receiving end during this time.
3. Regulatory Issues: The regulatory environment had turned so hostile for the foreign companies’
relation so that the Coca cola stopped its operations.

Launch Thums Up and Campa Cola in Indian Market in 1980

Factors:
1. Market Gap: With the exit of Coca Cola, it created a vacuum which the locals like Thums Up and
Campa Cola were quick to fill.
2. Indigenous Response: Indicates local players responded with their own brands since the demand
for soft drinks was going through the roof.
3. Local Preferences: Thums Up and Campa Cola were responsive to local tastes like strong flavours
besides they also captured the patriotism of patronizing Indian brands.

Why Thums Up and Campa Cola Stopped Being Manufactured in India

Reasons for Thums Up
1. Acquisition by Coca-Cola: Of course taking over another entity is the easiest way to eliminate
rivalry, and that is exactly what Coca-Cola did while taking over Thums Up, which was its strategy
for re-entering India and ridding itself of some of the competition.
2. Market Dynamics: The competitive scenario coupled with the fact that Coca-Cola had its global
resources to bank on made it difficult for Thums Up to survive on its own.

Factors for Campa Cola

1. Intense Competition: After the re-entry of Coke and Pepsi into the Indian market, the
competition became very intense, and Campa Cola was not able to hold the market share it had
grabbled. Operational and Financial Challenges: Handling operations and meeting the big-time
competition from well-funded global players makes a dent in the working and financial
soundness of the operations being made by Campa Cola.
2. Changing Consumer Preferences: the new preferences and marketing strategies of international
brands left Campa Cola in oblivion
Coke Re-enters and Pepsi is Introduced to the Indian Market in 1990
Reasons for Coke's Re-entry

1. Economic Liberalisation: In the early 1990's, the then Indian government undertook
economic reforms that made it easy for foreign companies to enter or re-enter the market
2. Strategic Buy: Coca-Cola Subs acquired local brands such as Thums Up.
3. Investment and Adaptation: Coca-Cola invested in the infrastructure necessary and adapted
its products to the local taste, so their re-entry into the country was easy.
4. Factors behind Pepsi's Entry: Economic Reforms: Like Coca-Cola, PepsiCo entered India when
the country adopted liberalized economic policies, which brought down some of the
regulatory barriers.
5. Joint Venture Strategy: The joint venture made it convenient for Punjab Agro Industries to
have an approval within the Indian market.
6. Aggressive Marketing: In the case of PepsiCo used the high-profile marketing instrument and
the localisation process for a backward reaction and for higher brand creation.

These very factors together drove the dynamics of the soft drink market in India and carved out
strategies with different outcomes for various brands across decades.
 Leading brands and the company having the highest market share.
In the seventies (1970-80):
During the 1970s to 1980, the leading soft drink brands in India and the company with the
highest market share evolved significantly due to the entry and exit of key players

Coca-Cola:
1. Company: The Coca-Cola Company
2. Market Share: Dominant until its exit in 1977.
3. Overview: Coca-Cola was the leading soft drink brand in India during the early 1970s. It enjoyed
widespread popularity and was the market leader until regulatory challenges forced it to exit in
1977.

Fanta:
1. Company: The Coca-Cola Company
2. Market Share: Significant share until 1977.
3. Overview: Fanta, particularly the orange-flavoured variant, was also popular in India, catering to
a different segment of the market alongside Coca-Cola.

Gold Spot:
1. Company: Parle Group
2. Market Share: Gained prominence post-1977.
3. Overview: After Coca-Cola's exit, Gold Spot, known as the "Zing Thing," became one of the
leading soft drink brands in India, especially in the orange-flavoured segment.

Limca:
DRAWING OF THE LOGO OF EACH DRINK BRAND ON THE RIGHT -------------- 1. Company: Parle Group
2. Market Share: Significant post-1977.
3. Overview: Limca, a lemon-flavored soft drink, also became popular in India during this period,
particularly after Coca-Cola’s exit.

Thums Up:
1. Company: Parle Group
2. Market Share: Leading brand post-1977.
3. Overview: Thums Up was introduced in 1977 after Coca-Cola’s exit and quickly became the
leading cola brand in India. It catered to Indian tastes with its stronger flavour and masculine
branding.

Campa Cola:
1. Company: Pure Drinks Group
2. Market Share: Significant in the late 1970s and early 1980s.
3. Overview: Campa Cola was launched by Pure Drinks Group, which had previously bottled Coca-
Cola in India. It became a popular alternative cola brand after Coca-Cola’s exit.

In the eighties (1980-90):

During the 1980s, the Indian soft drink market was dominated by domestic brands following
the exit of Coca-Cola in 1977. The absence of international competition allowed Indian companies to
establish and solidify their positions in the market.

Thums Up:
1. Company: Parle Group
2. Market Share: Dominant throughout the 1980s.
 3. Overview: Thums Up was the most popular cola brand in India during the 1980s. Known for its
strong, spicy flavour and masculine branding, it became the go-to choice for cola lovers across
the country. Thums Up was synonymous with cola in India during this period and enjoyed a large
and loyal customer base.

Gold Spot:
1. Company: Parle Group
2. Market Share: Significant, especially in the orange-flavoured segment.
3. Overview: Gold Spot, branded as the "Zing Thing," was a popular orange-flavoured soft drink
that appealed to a wide audience, particularly younger consumers. It was one of the leading
non-cola beverages in the market.

Limca:
1. Company: Parle Group
2. Market Share: Significant in the lemon-lime segment.
3. Overview: Limca, with its refreshing lemon-lime flavour, was another major player in the Indian
soft drink market. It was especially popular in the summer months and held a strong position in
the non-cola segment.

DRAWING OF THE LOGO OF EACH DRINK BRAND ON THE RIGHT -------------- Campa Cola:
1. Company: Pure Drinks Group
2. Market Share: Competitive, especially in the cola segment.
3. Overview: Campa Cola remained a popular alternative to Thums Up, particularly in northern
India. It was a home-grown brand that resonated with consumers as a symbol of Indian
entrepreneurship in the soft drink industry.

Campa Orange:
1. Company: Pure Drinks Group
2. Market Share: Notable in the orange-flavoured segment.
3. Overview: Campa Orange was another offering from the Pure Drinks Group that competed with
Gold Spot in the orange-flavoured soft drink segment.

In the nineties (1990-2000):

The 1990s marked a transformative period in the Indian soft drink market, characterized by
the liberalization of the economy, the re-entry of global giants like Coca-Cola, and the introduction
of Pepsi. This decade saw fierce competition between local and international brands, reshaping the
market dynamics.

Thums Up:
1. Company: Coca-Cola (after 1993 acquisition)
2. Market Share: Significant throughout the 1990s.
3. Overview: Thums Up continued to be a dominant cola brand in India even after its acquisition by
Coca-Cola in 1993. The brand retained a loyal customer base due to its strong, spicy flavor that
appealed to Indian tastes. Coca-Cola leveraged Thums Up’s strong market presence to compete
directly with Pepsi.

Coca-Cola:
1. Company: The Coca-Cola Company
2. Market Share: Rapidly growing after re-entry in 1993.
 3. Overview: Coca-Cola re-entered the Indian market in 1993 and quickly regained its position as a
leading cola brand. The company’s aggressive marketing, extensive distribution network, and
strategic acquisitions (including Thums Up) helped it capture a significant market share.

Pepsi:
1. Company: PepsiCo
2. Market Share: Significant and growing throughout the 1990s.
3. Overview: Pepsi entered the Indian market in 1990 and rapidly became a formidable competitor
to Coca-Cola. Through high-profile advertising campaigns featuring Bollywood stars and cricket
sponsorships, Pepsi positioned itself as the youthful, trendy alternative to other colas.

Limca:
1. Company: Coca-Cola (after 1993 acquisition)
2. Market Share: Strong in the lemon-lime segment.
3. Overview: Limca remained a popular lemon-lime soft drink throughout the 1990s. Coca-Cola’s
acquisition of the brand in 1993 allowed it to maintain its strong position in the non-cola
segment.

Mirinda:
1. Company: PepsiCo
DRAWING OF THE LOGO OF EACH DRINK BRAND ON THE RIGHT -------------- 2. Market Share: Significant in the orange-flavored segment.
3. Overview: Mirinda, an orange-flavoured soft drink from PepsiCo, was a direct competitor to
Coca-Cola’s Fanta. It gained popularity, particularly among younger consumers, thanks to vibrant
marketing and promotions.

Gold Spot:
1. Company: Coca-Cola (after 1993 acquisition)
2. Market Share: Declined in the late 1990s.
3. Overview: Gold Spot was one of the leading orange-flavored soft drinks until the late 1990s.
However, Coca-Cola phased out the brand after acquiring it in 1993 to focus on promoting
Fanta, its global orange-flavoured brand.

Campa Cola:
1. Company: Pure Drinks Group
2. Market Share: Declined sharply by the late 1990s.
3. Overview: Campa Cola struggled to maintain its market share in the face of intense competition
from Coca-Cola and Pepsi. The brand’s popularity waned, and by the late 1990s, it was no longer
a major player in the market.
 Different local brands venturing in the Indian market.
In seventies (1970-80)
During the 1970s to 1980, several local Indian soft drink brands emerged and established
themselves in the market, especially after Coca-Cola's exit in 1977. These brands capitalized on the
absence of major international players and catered to the growing demand for carbonated
beverages in India.

Campa Orange
1. Launched: 1977
2. Company: Pure Drinks Group
3. Overview: Alongside Campa Cola, Pure Drinks Group also introduced Campa Orange, an orange-
flavored soft drink. It competed directly with Parle’s Gold Spot and carved out a niche for itself in
the Indian market during the late 1970s.

Double Seven
1. Launched: 1977
2. Company: Government of India (Modern Foods)
3. Overview: Double Seven was launched by the Indian government through Modern Foods in
response to Coca-Cola's exit. It was named after the year of its launch (1977) and aimed to
provide an indigenous alternative in the cola segment. However, it struggled to gain significant
market share against more popular local brands like Thums Up.

RimZim
1. Launched: Late 1970s
2. Company: Parle Group
3. Overview: RimZim was a spiced masala soda introduced by Parle Group. It offered a unique
DRAWING OF THE LOGO OF EACH DRINK BRAND ON THE RIGHT -------------- flavour profile compared to other soft drinks, catering to Indian tastes with a tangy and spicy
twist. RimZim became popular in specific regional markets.

Sosyo
1. Launched: 1927 (Gained renewed popularity in the 1970s)
2. Company: Hajoori & Sons
3. Overview: Sosyo, a drink with a unique blend of apple cider and grape, was originally launched in
the 1920s but gained renewed popularity in the 1970s. It was marketed as a non-alcoholic drink
with a distinct flavour, appealing to a niche segment in the Indian market.

In the eighties (1980-90)

During the 1980s, the Indian soft drink market was dominated by local brands that had
established themselves in the late 1970s. With the absence of major international players like Coca-
Cola, these local brands flourished, catering to the diverse tastes of Indian consumers.
Double Seven
1. Company: Government of India (Modern Foods)
2. Overview: Double Seven, launched in the late 1970s by the Indian government, remained in the
market during the 1980s. However, it struggled to gain significant market share and was less
popular compared to brands like Thums Up and Campa Cola.

RimZim
1. Company: Parle Group
 2. Overview: RimZim, a spiced masala soda, continued to appeal to consumers with its unique
flavour profile. It catered to a niche market and was particularly popular in specific regions
where spiced beverages were favoured.

Sosyo
1. Company: Hajoori & Sons
2. Overview: Sosyo, with its blend of apple cider and grape flavours, continued to be a popular
choice in certain regions of India. It was marketed as a unique and refreshing alternative to other
soft drinks, and it maintained its niche appeal throughout the 1980s.

Bovonto
1. Company: Kali Mark (Kalis Sparkling Water)
2. Overview: Bovonto, a popular soft drink brand from Tamil Nadu, continued to enjoy regional
success in the 1980s. Known for its distinctive grape-flavoured soda, Bovonto was a favourite in
DRAWING OF THE LOGO OF EACH DRINK BRAND ON THE RIGHT -------------- South India and was a strong competitor in the regional market.

In the nineties (1990-2000)

The 1990s were a dynamic period for the Indian soft drink market, marked by the re-entry of
international giants like Coca-Cola and PepsiCo. Despite the growing dominance of these
multinational companies, several local Indian brands either continued to thrive or ventured into the
market during this decade. These brands sought to compete with the global players by focusing on
regional tastes, unique flavours, and strong brand loyalty.

RimZim
1. Company: Parle Group (until 1993), then acquired by Coca-Cola
2. Overview: RimZim, the spiced masala soda, continued to be popular among certain regional
markets during the 1990s. It retained a loyal customer base, especially in areas where spiced
beverages were traditionally favoured.

Sosyo
1. Company: Hajoori & Sons
2. Overview: Sosyo, a regional favourite with its unique blend of apple cider and grape flavors,
continued to cater to its niche market in Gujarat and parts of Maharashtra. It maintained its
presence as a popular regional brand, appealing to consumers looking for something different
from mainstream soft drinks.
Bovonto
1. Company: Kali Mark (Kalis Sparkling Water)
2. Overview: Bovonto, with its distinctive grape-flavoured soda, continued to enjoy success in
South India, particularly in Tamil Nadu. The brand was a strong regional player, competing
effectively against the larger national and international brands in its territory.
Arun Ice Cream’s Soft Drinks
1. Company: Hatsun Agro Product Ltd.
2. Overview: While primarily known for ice cream, Arun ventured into the soft drink market during
the 1990s, particularly in South India. The company introduced a range of carbonated and non-
carbonated drinks that were popular in regional markets, competing with local and national
brands.
Other observations done:
The success of international soft drink brands in India, coupled with the relative decline in
popularity of local Indian drinks, can be attributed to a combination of strategic factors employed by
multinational corporations and changing consumer preferences.

1. Aggressive Marketing and Branding

1. Sophisticated Advertisement Campaigns: Giant international brands like Coca-Cola and PepsiCo invested
enormous amounts of money to run high-impact advertisement campaigns which would appeal to Indian
consumers. Quite often, these ads used popular Bollywood celebrities or sports icons, thereby tugging the
emotional chords of audiences. Because of the catchy slogans, jingles, and highly captivating ads, such
brands managed to capture the imagination of consumers all around the country.
2. Uniform Brand Image: Global brands offered uniform and familiar brand images across the globe, which
inspired faith and reliability for the Indian customer. The quality connotation, thus, developed with global
brands became the reason of their success as most customers started relating such brands with modernity
and sophistication.

2. Better Product Innovation and Choice

1. Product portfolio and flavour innovation: International brands launched more product portfolios in the
market, as against the local Indian brands. For example, Coca-Cola and Pepsi introduced an array of
variants such as Diet Coke, Coca-Cola Zero, and Pepsi Blue, which again further catered to the diversified
consumer tastes of these two colas. A range of this type strived to maintain these brands as relevant and
exciting to the consumers, who were always looking forward to having something new and different.
2. Local Taste Adaptation: Being global brands, a player like PepsiCo and Coca Cola would adapt to local
Indian tastes in their products. This marked the advent of invented locally inspired flavours and beverages
like Coca Cola's Maaza, a mango drink to adapt to the Indian taste buds, which balanced global appeal
with local relevance.

3. Wide Distribution Network and Reach

1. Market Pervasiveness: International brands had a huge distribution circle, which ensured that they
reached even the remotest of places in India. The local brand distributors could not manage resources to
cope. So, this pervasiveness among international brands made them take an advantage on local brands.
2. Strategic Partnerships: Most of the brands used to associate with local bottlers and distributors to use
ready-made networks to cover the maximum possible territory with less cost and time. This surely kept
them a step ahead of the local competition, which could not easily match the scale of distribution.

4. Quality Perception and Aspirational Value

1. International Status: It was a belief that international brands signified global quality. As such, most Indian
consumers regarded the brands as attractive since premium products were identified with better
standards of manufacture, tastes, and safety. The perceptions in this regard were devolved after the
multinational corporations had internal quality control mechanisms.
2. Aspirational Lifestyle: International brands projected an aspirational value of modernity, a global lifestyle.
So, drinking a Coca-Cola or Pepsi had become a status symbol, especially in the eyes of young, urban
customers who wished to be like their western counterparts.
3. Lack of Innovation and Marketing Prowess: With most local Indian brands, there was not much that could
stand against deep pockets reserved for marketing by international companies and their potential for
5. Market Liberalization and Economic Reforms
1. Opening up the Indian Markets: In the 1990s, the government relaxed the restrictions in the FDI and trade
because of liberalizing the economy, and international companies easily re-entered or entered the
market. Using huge capital, global experience, and sophisticated marketing strategies, these international
companies applied all the business skills they possessed in order to dominate the market.

As a result of the mixture of all these factors, the international brands became associated
with a more desirable image, and Indians slowly moved towards foreign drinks vis-à-vis Indian
beverages. Heavier-than-life marketing through popular celebrities, apt slogans, and hummable
jingles were enough to build up an emotional connect with the consumer, and Coca-Cola and Pepsi
were suddenly not drinks but an expression of modernity and global culture.

Better quality perception and prestige then obviously associated with global brands also
played a significant role, since these drinks were seen as premium products representing a kind of
cosmopolitan lifestyle. Further, distribution networks of international companies provided wide
circulation of such products and further cemented their places in the market. While many local
brands slowly declined in the face of an inability to innovate or match their foreign rivals' prowess in
terms of marketing and distribution, foreign brands remained aspirational innovation. Typically, they
stuck to traditional flavours and archaic ways of marketing, which failed to match the changing choices and
preferences of the youth.
4. Scale and Resources: Faced with competition from local brands that did not have the budget needed to
scale their operations, countrywide marketing campaigns, and large distribution networks to stay
competitive against the flush international giants.
5. Perceived as Traditional or Out of Fashion: For over a long time, majority of the local drinks was solely
perceived as traditional or at worst as being out of fashion. The young consumers, especially began
clinging onto the new cosmopolitan images of global brands. This perception would therefore lead to a
dwindling demand for the local drink.
Conclusion:
In the mid-1970s, the introduction of Coca-Cola and Fanta in India was a significant move for
the industry, leading to the replacement of Thums Up and Campa Cola. Thums Up gained
nationalistic appeal while Campa Cola catered to a niche market. Despite Coca-Cola acquiring Thums
Up, competition from international giants like Pepsi made it challenging for Campa Cola to expand,
resulting in a loss of market share in the early 2000s.

Coca-Cola re-entered India in 1993, acquiring popular local brands like Thums Up and Limca PepsiCo
entered the Indian market in 1996 through a joint venture. Both companies localized their products
and marketing strategies to match Indian preferences, intensifying competition in the beverage
industry. This era marked a new phase of growth and competitiveness in the Indian market.

The success of international brands like Coca-Cola and Pepsi in India can be attributed to strategic
marketing, product innovation, wide distribution networks, and the association with modernity and
global culture. This led to a shift in consumer preferences towards foreign brands over local ones.
Bibliography:

www.Google Dataset Search.com

www.The World Factbook.com
www.Datasets SubReddit.com
www.Statistic Brain.com
www.Statista.com