Extended essay in Business and Management

Research question:- Is the new Campa Cola product by Reliance capable of

surviving the intense competition presented by Coca-Cola in the Indian

market for soft drinks?

May 2024

Word count :- 3600

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Table of Contents

Introduction..............................................................................................................................3
Finding.....................................................................................................................................5
Analysis....................................................................................................................................7
Ansoff matrix........................................................................................................................7
Market mix promotion..........................................................................................................8
Quality control....................................................................................................................11
Motivation...........................................................................................................................14
Herzberg's Two-Factor Theory for relaince.........................................................................16
Non-financial motivation.....................................................................................................17
Financial Motivation...........................................................................................................18
Product life cycle for Coca-Cola..........................................................................................19
Product life cycle for Campa cola........................................................................................22
Conclusion..............................................................................................................................22
Bibliography...........................................................................................................................25

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Introduction

Coca-Cola is a multinational corporation that offers an extensive range of

non-alcoholic beverages and is widely recognized as one of the most renowned brands

worldwide. Established in the United States in 1892, Coca-Cola has become the world's

largest non-alcoholic beverage company with a presence in over 200 countries and territories.

The company boasts an impressive portfolio of products that include classic brands like

Coca-Cola, Sprite, and Fanta, alongside a diverse selection of hydration, sports, coffee, and

tea beverages. Coca-Cola's central mission is to refresh the world while making a positive

difference, emphasizing sustainability and responsible business practices.

Reliance Industries Limited, India's largest privately-owned corporation and a Fortune 500

company has come a long way since its inception as a textiles and polyester manufacturer.

Today, it has evolved into an integrated enterprise with interests in energy, materials, retail,

entertainment, and digital services. At Reliance, their driving force is "Growth is life", and

they have achieved global leadership in many of their businesses by prioritizing innovation-

led, exponential growth in each of these areas. Their diverse portfolio of products and

services impacts the lives of people across all economic and social strata, making them a

ubiquitous presence in the daily lives of almost all Indians.

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History of campa cola

when Coca-Cola left India in 1977, Coca-Cola was now available again. Campa-Cola was

introduced in the 1970s by the Pure Drinks Group. The same company had originally brought

Coca-Cola to India in 1949 and had been the only producer and distributor of Coca-Cola until

the 1970s. When Coca-Cola exited the Indian market, the Pure Drinks Group and Campa

Beverages joined forces to create Campa Cola, which became a dominant player in the Indian

soft drinks industry in the absence of foreign brands.

What plans does Reliance have after purchasing Campa Cola?

According to Amulya Pandit, a consultant at Euromonitor International, Coca-Cola, and

Pepsi are not accustomed to facing a nationwide challenge. However, Reliance possesses the

financial strength and widespread presence to rival them using a local brand that holds

significant nostalgic value. (Euromonitor International is the world's leading provider of

global business intelligence, market research data, and analysis)

Reliance is now using slogans like ‘The Great Indian Taste’

Reliance (campa cola) promotion methods

The slogan ‘ The Great Indian Taste’:- This campaign coincides with the company’s plan of

amplification of indigenous Indian brands that not only boast a rich history but also a well-

embedded connection to the Indian consumers due to their unique tastes and flavors.

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Finding

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Over half of the market is familiar with this drink. Coca-Cola is the most popular choice,

followed by Thums Up and Campa Cola, which has surpassed Red Bull, Sting, and Fanta.

The primary reason people prefer these drinks is their taste.

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Analysis

Ansoff matrix

Coca-Cola :-

Market penetration –The concept of increasing sales of existing products into an existing

market. Regarding Coca-Cola, they initiated their presence in India by introducing flavors

tailored to the local market, such as Thums Up, Limca, and Sprite Nimbu Fizz, to align with

the preferences of Indian consumers. Coca-Cola has actively connected with consumers in

India through digital channels such as social media and e-commerce, extending its influence

and fostering brand loyalty. Coca-Cola has participated in diverse social initiatives, including

initiatives to ensure access to clean drinking water and support for education, cultivating

positive relations within Indian communities.

Reliance

Reliance focuses on product development by investing significantly in research and

development across India. This includes innovations in materials science, biotechnology, and

digital technologies. This strategic approach aims to introduce new products for existing

customers, though it involves some risk like the investment in new products carries risks,

with no assurance of success. If these products do not perform well, Reliance faces the

potential loss of a significant amount of money in pursuing this strategic approach. Despite

this, Reliance Retail has become a key player in the Indian retail sector, offering a wide range

of competitively priced products through innovative formats like Reliance Fresh, Reliance

Trends, and JioMart to meet diverse consumer needs.

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Market mix promotion

Coca-Cola

Coca-Cola employs a comprehensive marketing strategy encompassing Above-the-Line

(ATL) promotion through mass media, event sponsorships like the Olympics and FIFA

World Cup, and impactful print ads such as "Open Happiness" and "Taste the Feeling."

Excelling in both traditional ATL and digital platforms, the brand strategically utilizes social

media for engagement and influencer partnerships, effectively building widespread brand

awareness and creating memorable cultural moments.

In Below-the-Line (BTL) Experiential Marketing, Coca-Cola draws inspiration from global

success stories, implementing initiatives like "Happiness Rooms" pop-ups, hyperlocal

partnerships in Brazil and Japan, and innovative gamification such as AR scavenger hunts.

Interactive vending machines, tested in Japan, offer customization and demonstrate potential

for further development with emerging technology.Btl strategies aim to boost brand the

loyalty through special benefits like discounts, early access to product and sending gifts or

samples keeps the brand top in the customer mind by doing this can we can increase sales and

market share

Through Coca-Cola's TTL campaigns, ATL media is designed for the first impulse that

would stimulate interest, whereas BTL channels go further and give a chance to customers to

try and buy the drink. As an example, "Share a Coke" campaign introduced the idea through

TV advertisements, whereas social media and shelf promotions started the campaign’s actual

selling of the products.

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Besides widening the coverage of the TTL campaign, the brand achieved crossing its

conventional limitations by joining online and offline marketing channels. Through this

strategy the brand managed to engage people of different ages, nationalities, and social strata,

it was a crucial stage in the brand's globalization endeavor.

Market mix promotion

Reliance

Above-the-Line (ATL) Promotion for Reliance Television: Reliance smartly chooses

television stations with different themes to extend its brand on more people. In most cases

advertisers use celebrities’ endorsements and appealing jingles to increase not only brand

awareness

Radio: To achieve these goals, the brand relies on radio advertising to engage the audience at

a regional level and to support the local initiatives. Customized ads that have words to

different languages and dialects while may be costly to the advertiser, but are definitely worth

the investment.

Sponsorships: Through the sponsorship of big sporting events, awards shows and reality TV

programs, Reliance uses that as an opportunity to connect its brand with positive emotions

and amazement.

Below-the-Line (BTL) Experiential Activations: Demonstration sessions and workshops on

use of the product and handling of the product are showcased at the Reliance Digital Store or

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our stores. Within social media platforms gamified contests and offers are a great way to stay

in contact with the customers. At the same time direct communication such as SMS or email

campaigns allow to provide extra discounts and individual offers. Loyalty plans are aimed to

create a special ground for loyal consumers and giving them special discounts and gifts.

Community oriented services like free Wi-Fi hotspots in villages powered by Reliance Jio,

training workshops on use of Reliance Digital products for spoils of war and society, and

sports tournaments or cultural events sponsorship.

Through-the-Line (TTL) Television: A line of high-impact TV commercials of Reliance

brings together its whole range of integrated offerings like Jio connectivity, JioPay, JioTV,

JioMusic, JioMart, and even JioLearn and Jiohealth.

Outdoor: While the companies' billboards, bus shelter ads, and street murals are in the bright

colors that are a true reflection of the brand message and services, the company takes it a

notch higher by advertising on online platforms, for instance, sponsored search engine

results.

Digital: In social media sites like Facebook, Instagram and TikTok, involved in campaigns

with customer interaction, user-generated-content contests, influencer partners and with

Reliance branded filters.

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Quality control

Coca-Cola

Achieve and uphold enduring food safety and quality standards by establishing and certifying

robust quality management systems that adhere to ISO 9001:Until 2008, ISO 22000:2005,

FSSC 22000, and globally standardized Coca-Cola Management System. Additionally, where

applicable, ensure compliance with PAS 223:2011.

Verify the efficacy of food safety and quality management systems by conducting internal

and external audits acknowledged by the International Standards Organisation and The Coca-

Cola Company. Guarantee alignment of food safety and quality standards among suppliers

and contractors, overseeing their adherence to these commitments through regular audits and

inspections of incoming goods.

If Coca-Cola does not follow its quality control procedures, there could be several negative

consequences, including:-

(i) Impairment of brand reputation: The occurrence of a food safety scandal has the potential

to significantly harm Coca-Cola's image, resulting in customer loss and revenue decline.

(ii) Potential regulatory consequences: Failure to adhere to food safety regulations may

subject Coca-Cola to regulatory actions such as fines and product recalls.

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Coca-Cola uses a comprehensive approach to maintain its high standards of quality

control. Here are some key elements:-

Data Analytics and Risk Assessment In addition, using tools such as data analytics and

risk assessment to identify early warning indicators is only the beginning of a thorough and

flexible approach to solving the issue. Reducing infection rates and maintaining consistent

final product quality are two of this standard's primary goals.

Partnership and Collaboration:- Coca-Cola aims to achieve its goals through different

partnerships and collaborations involving its suppliers. One of its top priority areas is to

enhance food safety and consistently maintain quality standards by working together in the

entire supply chain. The partnership has proven to be helpful in that, it is possible to

anticipate any problems ahead, there by preventing consumers from facing any risks

Verification of Systems:- Coca-Cola regularly places their food safety and quality

management systems under scrutiny by conducting both internal and external audits. It is an

effective measure in case of diagnosing and creating of any failures or cracks in the system

which leads to the stable functioning of the system and high standards maintaining.

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Reliance Fresh Mart

Compliance audits: - Regular supplier assessments are done by Reliance Fresh Mart for

compliance with the various food safety guidelines and Reliance's policies and rules.

Performance monitoring: -Reliance Fresh Mart continuously sets and controls its key

performance indicators for suppliers and takes orders delivery timeliness, product quality and

customer feedback in to consideration, in order to ensure that suppliers of the company

perform well in all the points.

Visual inspection:- Staff members belonging to Reliance Fresh Mart are skilled in visual

inspections, they are the ones who closely inspect the stock prior to store arrival so as to pick

out any defects or damage.

If Reliance Fresh Mart does not follow its quality control system, several consequences

could arise:-

Negative word-of-mouth:- Unfavorable experiences with Reliance Fresh Mart's quality

control, when shared by customers, have the potential to harm the company's reputation.

Social media backlash: - Adverse reviews and social media commentary have the potential

to impact Reliance Fresh Mart's image and undermine consumer trust.

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Increased costs:- Reliance Fresh Mart could face supplementary expenses arising from the

necessity to manage the disposal of spoiled or defective products, execute recalls, and address

customer complaints.

Motivation

Coca-cola

Coca-Cola demonstrates dedication to a motivated workforce through the application of

Herzberg's Two-Factor Theory, which identifies hygiene factors and motivators as key

elements influencing employee satisfaction.

(i)Hygiene factors: -

Salary and benefits:- Coca-Cola provides competitive pay and comprehensive benefits,

encompassing healthcare, retirement plans, and paid time off.

Working conditions:- The company aims to ensure workspaces are secure and comfortable,

equipped with ample resources and technology.

Company policies:- It is essential to have fair and transparent policies regarding work hours,

performance evaluations, and career advancement.

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(ii)Motivators:-

Achievement:- Coca-Cola acknowledges and incentivizes individual and team

accomplishments through award programs, public recognition, and avenues for career

progression.

Recognition:- Employee contributions are actively recognized and valued, cultivating a

sense of belonging and appreciation.

Growth opportunities:- The company allocates resources to training and development

initiatives, enabling employees to gain new skills and progress in their careers.

(iii) Benefits of implementing the theory:-

Increased employee engagement:- Addressing both hygiene and motivator factors leads to

employees feeling valued, motivated, and committed to their work.

Improved performance:- Employees who are motivated are inclined to be productive,

innovative, and efficient, thereby making valuable contributions to the company's success.

Reduced turnover:- Employees who are content are less prone to leaving the company,

thereby lowering recruitment and training expenses.

Herzberg's Two-Factor Theory for relaince

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(i) Hygiene Factors:-

Salary and benefits: -Reliance is recognized for providing competitive salaries and

comprehensive benefits packages, addressing the fundamental needs of employees, and

preventing dissatisfaction.

Job security:- Reliance, being a sizable and well-established company, offers employees a

sense of security and stability.

Working conditions:- Reliance invests in the development of contemporary and

comfortable workspaces for its employees, encompassing elements such as infrastructure,

technology, and amenities.

Company policies and procedures:- Fair and transparent policies, clear communication, and

opportunities for employee input can contribute to a positive work environment.

Motivational Factors:-

Achievement :- Reliance offers employees the chance to tackle challenging tasks, attain

goals, and receive recognition for their achievements.

Recognition:- Reliance has implemented initiatives to acknowledge and reward employees

who demonstrate high performance, nurturing a feeling of pride and appreciation.

Applying the Theory:-

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Focusing on both hygiene and motivational factors:- Emphasizing both hygiene and

motivational aspects involves not only guaranteeing competitive salaries and benefits but also

investing in opportunities for growth, recognition, and engaging work.

Non-financial motivation

Coca-Cola

(i) Communication

Coca-Cola shapes its mission and values through employee collaboration. Each year, a global

Employee Insights Survey is conducted using an interactive platform, inviting input on

company operations and suggestions for enhancement. This dynamic approach allows

employees to contribute ideas and feedback, fostering ongoing improvement tracked by

Coca-Cola over time.

(ii)Training and Mentoring

At Coca-Cola, fostering employee growth is a key priority. The company provides various

development programs, including Peak Performance for ongoing rewards, developmental

forums for teaching opportunities, and functional developments to enhance job skills. Coca-

Cola University, an online learning platform, facilitates continuous learning. Additionally,

employees engage in short-term assignments across different departments or countries,

broadening their experience and expertise.

(iii) Energizing Environment

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Coca-Cola prioritizes employee well-being beyond competitive compensation, offering a

stimulating environment with on-site amenities globally. These include cafeterias, dry

cleaning, credit unions, and stores, reducing the need for errands. Free parking eases stress

and supports work-life balance.

At the UK headquarters, additional perks include free drinks, fresh fruit, flexible summer

hours, and an on-site gym. These efforts reflect Coca-Cola's commitment to creating a

supportive, vibrant workplace that values employees' comfort and contributes to satisfaction

and productivity.

Financial Motivation

Coca-Cola

(i) Professional Growth and Educational Possibilities

Coca-Cola acknowledges the significance of career advancement and learning as prime

motivators for its employees. The company provides diverse training initiatives, mentorship

opportunities, and leadership development programs. By investing in the future potential of

its workforce, Coca-Cola keeps employees engaged and motivated, fostering a skilled and

experienced team that contributes to the company's overall success.

(ii) Competitive Base Salary and Benefits

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Coca-Cola aims to provide competitive compensation and benefits to attract and retain top

talent. This encompasses regular salary reviews, comprehensive healthcare, retirement plans,

and ample paid time off, fostering financial security for employees to enhance their focus and

contribute to the company's success.

(iii) Profit-sharing programs

Certain Coca-Cola departments implement profit-sharing programs, enabling employees to

profit from the company's financial success directly. This cultivates a collaborative spirit,

motivating individuals to actively contribute to the company's profitability. The direct

correlation between their efforts and financial gains serves to enhance morale and

engagement.

Product life cycle for Coca-Cola

(i) Introduction

The entry of The Coca-Cola Company into the Indian market in 1950 was a significant

milestone, ushering in a new beverage concept to a country deeply rooted in traditional tastes.

Initially facing resistance attributable to cultural preferences favoring local beverages such as

lassi and nimbu pani, Coca-Cola persevered through persistent marketing

campaigns.Strategy, comprising assortment with Bollywood movie stars, overwhelming the

audience with the event of vivacity and establishing itself as a symbol of Westernization

broke the original barriers. In the course of time, Coca-Cola got into the rhythm as it

consolidated its status as one of the strongest brands in this market.

(ii) Growth

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Coca-Cola started to proactively work on the growing new line of carbonated soft drinks,

which walked in the path of a vigorous expansion, diversification and marketing strategy.

The company expanded its distribution network to reach even remote regions, introduced

new flavors like Thums Up and Sprite, increased marketing and advertising spending,

sponsored major sporting events and cultural festivals which are above-line promotions

(TTL), and acquired local beverage brands like Maaza and Limca. These strategies enabled

Coca-Cola to solidify its position as the leading beverage brand in India.

(iii) Maturity

During the maturity stage, Coca-Cola confronted the task of sustaining its market share and

brand prominence in the face of rising competition and changing consumer inclinations. To

tackle these challenges, the company implemented a comprehensive strategy encompassing

product diversification, strategic collaborations, and a concentrated effort to foster brand

loyalty. Through the exploration of new product categories, alliances with local brands, and

the reinforcement of brand allegiance, Coca-Cola effectively upheld its leadership position

within the Indian beverage industry.

(iv) Decline Stage (Future)

(i) Introduction of Healthier Beverage options:-

Plant-based beverages:- Coca-Cola has the opportunity to investigate the utilization of

plant-based components such as coconut water or almond milk to develop more health-

conscious beverage alternatives.

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Functional beverages:- Coca-Cola has the potential to launch beverages incorporating

additional nutrients, vitamins, or electrolytes, catering to health-conscious consumers seeking

drinks with enhanced benefits.

(ii) Diversification into New Beverage Categories:

Functional waters:- Coca-Cola can innovate with enhanced functional waters fortified with

electrolytes, vitamins, or adaptogens to capitalize on the burgeoning trend of hydration-

focused and wellness-promoting beverages.

Craft beverages:- Coca-Cola can innovate with enhanced functional waters fortified with

electrolytes, vitamins, or adaptogens to capitalize on the burgeoning trend of hydration-

focused and wellness-promoting beverages.

(iii) Enhanced Marketing and Brand Positioning:

Focus on moderation and balanced consumption:- Coca-Cola has the opportunity to

advocate for responsible beverage consumption, emphasizing that its products can be

incorporated as part of a balanced diet.

Partnerships with health organizations and influencers:-Coca-Cola has the potential to

partner with health experts and influencers to endorse its healthier beverage alternatives and

provide educational content to consumers regarding healthy lifestyle choices.

Product life cycle for Campa cola

(i) Introduction

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Campa Cola, a recently launched cola brand in India in 2018, is currently positioned in the

introduction stage of its product life cycle. While it has been gaining traction in the Indian

market, the company is in the early phases of developing brand awareness and capturing

market share.

(ii) Growth

Campa Cola, one of India's native cola brands, now leads a boom in its growth stage life

cycle. Spite of fierce competition coming from established brands, Campa Cola capitalises on

rising demand for alternative options and its sales gear up, hitting the markets.

Conclusion

At the end of the day, Coca-Cola and Campa Cola had both created unique strategies for

success in the Indian beverage market that is highly competitive. Coca-Cola, a famous brand

with a wide consumer base, has concentrated on market penetration and diversification,

whereas Campa Cola, a newer firm, has targeted brand development to differentiate itself

from the conventional cola brands.

With the Indian beverage market goes through the growth process, both the corporations will

have to adept to the shifting needs of the consumers and focus on their own companies brand

identity. Coca-Cola through its legacy and experience can protect its leadership role, while

Campa Cola with its innovative strategy can address health-conscious consumers‘ target.

With the growing competition as well as the changing consumer behavior, both companies

must continually be updating their marketing tactics and endorsing fundamental brands in

order to stay ahead their competitors in the Indian beverage market.

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Recommendation

Campa Cola has employed a variety of strategies to challenge the dominance of Coca-

Cola in the Indian beverage market:-

Introducing new flavours

:- Marketing Humanize: Campa Cola has been involved in a campaign that offers

different flavors to expand its product range, thus to attract a wide base of

audiences. Furthermore, the company has recently introduced new packaging

styles like read-to-drink cans and bottles to be able to catch up the moving

consumer trends.

Emphasizing natural ingredients

Campa Cola has put itself on a pedestal as a nutritional superiority to the conventional colas

by attracting the attention of the consumers towards the utilization of natural ingredients in its

formulas. The reason is that clean label products appeal to healthy lifestylers who are going

for natural and organic products nowadays more than ever.

Targeted marketing and promotions

The target market of the Campa Cola is young, urban consumers who usually have a high

curiosity for different products and are habitual to try new brands and explore new flavors.

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The brand has partnered with top influencers and created eye-catching buzz through inspired

campaigns on social media, hence, its main customers were reached.

Partnering with retail chains

Selling the products of Campa Cola in outlets of major retail chains will make the products

reach the consumers easily. The brand has also been a part of in-stores promotions and

product placements to increase brand visibility as well.

The business strategy of Campa Cola is building a foothold, responding to Coca-Cola's

monopoly in Indian beverage market. Nonetheless, the fact that Coca-Cola's conquest is

already present in the entire globe will raise the difficulty of fighting the competition.

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