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Pepsi has IPL, but Coke isn't far behind

Coca-Cola says it has a few aces up its sleeve even as its rival milks its association with the Indian Premier League to the hilt

Viveat Susan Pinto Mumbai
Last Updated : Apr 27 2013 | 1:05 PM IST
The questions have been coming up with alarming regularity in the last few weeks, especially, since the start of the Indian Premier League (IPL) on April 3. Pepsi and allied brands from the PepsiCo stable are just about everywhere - on TV, print, online, on-ground and outdoor - thanks to the latter's association with the hottest sporting property in the country - IPL. But where is Coke?

Executives from the Indian unit of the Atlanta-based company say there is no vanishing act it proposes to do this summer. The company does have a marketing plan in place to deal with PepsiCo's onslaught. "IPL is one element of the marketing mix. It is not the be all and end all for us," says a Coca-Cola India executive.

A company spokesperson says, "Our mantra has been to innovate and adapt to local tastes and aspirations. Part of this includes the launch of a 400-ml on-the-go pack in our sparkling or carbonated beverages portfolio. We have also introduced an invitation price of Rs 8 for Coke and activated 2.2 million retail outlets this summer which will stock and sell our products."

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On IPL, Coca-Cola has the pouring rights for Mumbai Indians - a partnership on for the last three years. All beverages consumed by people in stadia where Mumbai Indians will play their matches will be provided by Coca-Cola. The company has also taken up spot buys during the telecast of IPL matches on TV to ensure its brands are visible this summer. "All our brand commercials are on air from Coke to Maaza, Fanta, Sprite, Thums Up and Limca. There is no brand that has been left out," says the company spokesperson.

Of the latest in its advertising series, the company has launched the second commercial for Brand Coke featuring actors Alia Bhatt, Varun Dhawan and Siddharth Malhotra - who starred in the film Student of the Year last year - and are the faces of Coke's summer campaign this year. Its new Limca commercial, featuring brand ambassador Kareena Kapoor, is on air too. So is the second instalment of the new Maaza campaign featuring actors Imran Khan and Parineeti Chopra.

But is this enough when PepsiCo has something to announce almost every other day? The Indian unit of the Purchase, New-York-headquartered company has just kicked off the second phase of its marketing campaign around the IPL with ads featuring cricketer Chris Gayle and actor Priyanka Chopra. This comes right after the first set of Pepsi ads featuring actor Randhir Kapoor were released two weeks ago.

Homi Battiwalla, senior director - marketing (colas, juices & hydration), PepsiCo India, says: "The excitement around our marketing and activation plans around the IPL is slated to grow as the tournament progresses. The first phase has received an excellent response, now the second leg has kicked off with the coming together of two of the brightest stars in Bollywood and cricket."

By stitching up deals at three levels - the crucial title sponsorship of the IPL, followed by pouring, vending and marketing rights of eight out of nine participating teams, followed by the associate sponsorship of the broadcast of matches on television, PepsiCo, say analysts, has left no stone unturned in its attempt to divert consumer attention to its portfolio of brands this summer. Battiwala admits that IPL and the summer season coincide at just the right time giving the company the necessary ammunition to go the whole hog in the crucial period stretching from April to June - when beverage consumption is at its peak. In the fiercely competitive fizzy drinks market in India, PepsiCo, say experts, needs all it takes to storm ahead of its rival.

While Pepsi is still ahead of Coke in the pecking order of carbonated beverage brands in India, it is Coca-Cola products, Thums Up and Sprite that come in at number one and two in the Rs 13,000-crore aerated drinks market. Pepsi comes in at number three and Coke at number four, respectively. Following this lot closely behind are brands Fanta, Mirinda and Limca, tapering off with brands 7Up and Mountain Dew, according to beverage industry sources.

In a recent interaction with Business Standard, Coca-Cola's India and South West Asia President and CEO Atul Singh indicated that as the company's portfolio continued to expand, dependence on a few months to drive business would come down. "Also, as people start consuming at different occasions during the day, the seasonality aspect will reduce," he said.

This could partly explain, say experts, why Coke has not opted to sink too much money into the summer months. They are now counting on all-year presence.

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First Published: Apr 21 2013 | 9:30 PM IST

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