Cricket News

Beverage brands ready to pour 15-20% more into ads


India’s beverage industry is undergoing a significant transformation. Established giants such as Coca-Cola and Pepsi are now encountering new competition, as Reliance-backed Campa Cola makes a notable return and niche brands such as Lahori Zeera gain market share with their distinctive offerings. 

At the same time, the India Meteorological Department (IMD) has forecast an unusually hot summer, prompting beverage brands to expedite their marketing efforts earlier than usual. As temperatures rise, the competition for consumer attention intensifies, creating a fierce contest in the soft drink market. Saurabh Munjal, founder of Archian Foods, which is the parent company of Lahori Zeera, notes that this year’s advertising season commenced significantly earlier. 

“Most brands usually launched campaigns post-Holi, but we saw several big-ticket campaigns in February itself.” 

Saurabh Munjal, founder, Archian Foods

Campa Cola’s pricing strategy has compelled other brands to modify their prices and has also prompted them to implement innovative strategies to respond to the changing market dynamics.

Some brands are capitalising on celebrity power; for example, Mountain Dew roped in Salman Khan along with its long-time brand ambassador, Hrithik Roshan. Thumbs Up had SRK surfing through Toofan. 

On the other hand, some brands have opted to stay away from celebrities. For example, Maaza, traditionally associated with mangoes, has repositioned itself as a drink for all ‘small moments’. 

Coca-Cola, which has featured celebrities such as Deepika Padukone and Diljit Dosanjh in recent ads, came up with a simple ‘jingle’ for its 2025 campaign. We also saw Appy Fizz embracing ‘jingle’ featuring Vicky Kaushal’s dance moves this year. 

Ad spend to rise by 15-20%

According to a report by Altius Investech, a private equity firm, both Coca-Cola and PepsiCo spend a combined Rs. 2500 crore annually on marketing in India. Industry experts expect that beverage brands will play a significant role in the overall advertising expenditure (adex) this summer, especially with the Indian Premier League (IPL) approaching.

K Vaitheesaran, former CEO and founder of Just Drinks, says that cola brands are poised to substantially increase ad expenditures this season.

Uday Mohan, COO of Havas Media India, further elaborates that brands are likely to invest significantly in high-visibility campaigns. 

“We expect an increase of approximately 15-20% in ad spending from beverage brands this quarter. Given past trends and the seasonal demand spike, brands will likely invest heavily in high-visibility campaigns, digital-first storytelling, and mass media integrations to stay ahead of the competition.”  

Uday Mohan, COO of Havas Media India

Digital to outpace TV in ad spend

While major players such as Coca-Cola and Pepsi are investing heavily in marketing, smaller brands are using innovative digital strategies to capture consumer attention.

Munjal, whose 2024 campaign Har Koi Peera, Lahori Zeera gained significant traction, shares his 2025 plans: “We’re working on a natural extension of last year’s campaign. Our challenge now is to widen our audience reach through effective distribution while managing resources wisely.”

Munjal also points out the high costs associated with IPL advertising. 

“A 10-second ad spot during a recent India-Pakistan match cost around Rs 40-50 lakh, which is not feasible for our budget. We’re focusing on innovation in content and distribution, exploring cost-effective solutions for significant impact. Digital and programmatic advertising are key for us.”

Mohan from Havas Media expects a shift towards digital.

“We anticipate a 55:45 split in favor of digital, as brands increasingly prioritise precision targeting, engagement, and performance tracking. However, TV and outdoor advertising will still command a strong share, especially for mass awareness campaigns.”

Uday Mohan, COO of Havas Media India

  • 55% of spending will be on digital media (social media, OTT, connected TV, influencer marketing).

  • 45% will remain in traditional media (TV, print, OOH, and radio) to ensure mass reach and recall during peak consumption periods.

Cola wars and cricket 

Campa Cola’s acquisition of co-presenting rights for IPL 2025 in a Rs 200 crore deal marks a significant shake-up in the beverage market. Last season, these rights belonged to Coca-Cola’s Thums Up.

Vaitheesaran compares the present situation to the cola wars of 1996 when Coca-Cola and Pepsi fiercely competed for dominance during the cricket World Cup. Coca-Cola secured the official World Cup sponsorship for Rs 10 crore, while Pepsi responded with the iconic Nothing Official About It campaign, positioning itself as the fan-favourite despite not holding official rights.

A similar battle is playing out today. Pepsi’s new Any Time Pepsi Time campaign takes a smart jab at Coca-Cola’s Half Time Push campaign, evoking memories of previous marketing rivalries.

According to Vaitheesaran, Coca-Cola, Pepsi, and other leading brands have ramped up their marketing efforts early this year to counter Campa Cola’s IPL influence. The Reliance-backed soft drink brand has already launched its debut campaign for Campa Energy, timing its TVC release strategically before the Champions Trophy final.

With the summer heat rising and cricket fever peaking, the stage is set for an intense brand battle in India’s beverage market.





Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Join Us On Telegram