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would be more important for a cola brand—advertising or marketing?
That’s a tough poser. And, the answer would vary at different points in a brand’s lifespan. Can you choose between communication and packaging? A case in point is the Pepsi slim can—the same product but in a different pack. It was introduced because we saw a need for it—a need for affordability, so it is priced at Rs 10. Distribution would also be part of my marketing mix, but I don’t really need to talk about it, or do I?
To reiterate a point I made earlier, a brand as definitive as Pepsi does not need to be defined by a particular face or a campaign—that’s the positioning of this brand and we are staying with it.
World over, the cola market is shrinking rapidly. It’s yet to happen in India, though the early indications are there. How do you plan to offset this change in beverage preferences? By shifting the focus to your health drink portfolio?
That and also by focusing on the overall mix of carbonated and non-carbonated drinks. This we hope will stabilise as the market matures.
The next challenge would be to ensure that we keep widening the Pepsi portfolio to answer a higher level of the beverage need state. Right now, carbonated drinks are sold mainly on the taste and refreshment premise. The next stage would be reaching out for a drink for a feeling of wellbeing, social status or nourishment. We would have to engineer our product solution to fulfill all these needs and more. We would have to ensure a confluence of various things to grab a bigger share of the throat’ with the result that when someone reaches out for a beverage, I have to make sure it is mine. It could be anything, lime or clear lime, that’s really immaterial.
That said, although the cola market is growing slower (10% per annum) than the fruit juice market (about 20%), you must also look at the size of the category. Right now, its just one-tenth of the cola market. But it has the potential to grow bigger.
What’s the response to your bottled water brand Aquafina?
The response is good, but the problem with this category is that water is still a commodity and highly discounted. What need can you satisfy with water? So you can’t charge a premium for it because people won’t pay it. Later, when the...
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