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Market Summary of Thums Up

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Submitted By asingh90
Words 1937
Pages 8
Indian Institute of Technology Madras
Marketing Management

Thums Up - A Market Study

Author: Alok Singh September, 2014 Chennai

Sept 14, 2014

About of Product

Thums Up is a caffeine based (Cola) aerated soft drink. It is the largest selling soft drink brand in India. It was introduced in 1977 on the exit of Coca Cola Company from India. It was later on bought by Coca Cola Company to compete with Pepsi.

In the Cola segment it has a commanding market share of 42% and it has a market share of 15% in the Indian aerated soft drink market.

History of Product

1970s saw an unexpected exit of cola giants Coca Cola and Pepsi from India as the government policy required it to sell its 60% of the equity to an Indian Company. Which led Parle owners Ramesh Chauhan and Prakash Chauhan, to launch Thums Up as their flagship cola drink to fill the gap created and also adding to their existing brands Limca-lime flavored soda and Gold Spot-orange flavored soda. It was one of the major advertisers throughout the 1980s and in the mid '80s it faced a very short-lived competition from Double Cola other than that it maintained a near monopoly in the market. Then came the liberalization face of India which opened the market for multinationals in many sectors including food and beverages. This step led to the re-entry of global giants Pepsi (1990) and Coca Cola (1993). Thums Up engaged itself in a heavy competition of endorsement with Pepsi and even launched a larger packaging of 300ml and calling it “MahaCola”. This gave Thums Up an edge over Pepsi in the rural area where it was now being reffered as “MahaCola”

Coca Cola (1993) re-entered India starting a three-way Cola War with Pepsi and Thums Up. That same year, Parle sold Thums Up to Coca Cola for US$ 60 million. It is assumed by many that Chauhan brothers had lost the interest for a fight against the two

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