In 1993, when Parle sold off a typically domestic brand to Coca Cola for $60 million, industry watchers thought that the Chauhans had hit an unanticipated jackpot – many had even believed then that the precocious brand would die in the short run... 17 years – and some portentous stymieing attempts – later, the brand Thums Up has not only become prodigiously iconic, but has spawned a staggering legacy that is spoken of with unanticipated awe. In a first of its kind series, 4Ps B&M maps the legacy of the brand Thums Up, with live inputs from the top honchos of Coca Cola and Parle
The year was 1977. Eight years had passed since Parle had purchased brand Bisleri from Italy’s Felice Bisleri and just one year since the launch of an unknown lemony drink called Limca. Ramesh Chauhan, along with brother Prakash and CEO Bhanu Vakil, were counting the days for the launch of their flagship soft drink – a carbonated cola drink. The brothers knew their job was tough. Per capita consumption of cold drinks (then) was worse than expected for an anyway below average market. But Ramesh Chauhan wasn’t that worried. He’d seen tougher times since the day he had started his career as an employee in an Indian post office. He knew he could work it out...
The American soft drink giant Coca Cola’s headquarters had just left India following the introduction of Foreign Exchange Regulation Act (FERA) whereby it was asked to reduce its equity stake to 40% even in their technical and administrative units (Coca Cola refused, and exited). And as the black cola market was bereaved by the sudden absence of Coca Cola, the Chauhan brothers, taking advantage of this void, launched Thums Up, which was an instant hit in metros (It was later launched on a pan-India basis in 1981). Since then, in 33 years, the brand has dethroned the leaders, outpaced the laggards, walloped the upstarts, horsewhipped the substitutes, and even changed hands (as is perhaps too well known, Ramesh Chauhan sold brand Thums Up to arch rival Coca Cola in 1993 for $60 million – a decision he doesn’t regret till date).
Circa 2010: Thums Up is India’s largest selling carbonated cola drink with a market share of 16.4%. Much has changed in the years that have gone by, but what has remained unchanged is the fiercely competitive battle between the major soft drinks makers. If today the warring factions include PepsiCo and Coca Cola, the late 1970s and early 1980s era saw the combatting battalions of Campa Cola (from the stable of Pure Drinks Ltd., which later also introduced Campa Orange) and Double Cola (a US-based soft drink). Despite that, the brand Thums Up still remains the market leader with Pepsi commanding 13% share and Coke 8.2%. Thus, from 1977 to 2010; from Parle to Coca Cola; from Sunil Gavaskar to Salman Khan to Akshay Kumar – ‘thunder’ has remained a durable proposition, outbeating many product life cycle theories by decades. And that’s the crux of this cover story – how in heavens does Thums Up keep stealing the thunder?
If Wal-Mart became iconic for ‘Always Low Prices’, there’s no doubt where Thums Up saves its hyperbole in ‘Taste The Thunder’, exemplified contemporarily by an ad campaign of Thums Up where Akshay Kumar (its brand ambassador since 2003) performs the extreme sport of ‘parkour’ to grab his bottle of Thums Up from a suggestively attractive lady. “Taste the Thunder has been the most breakthrough communication campaign for the brand. It stands for masculinity that has constantly been redefined over the years, yet keeping the execution relevant to today’s times,” says K. V. Sridhar, National Creative Director, Leo Burnett (the agency which handles Thums Up’s account) to 4Ps B&M. But then, the acutely bewitching punch-line of Taste the Thunder did not come about so easily. Some would know this, that when Thums Up was launched in 1977, Ramesh Chauhan unabashedly played to the galleries by tagging Thums Up with the caption Happy days are here again that indicated that the market was free from the ‘capitalist international companies’ (PepsiCo and Coca Cola) and an Indian cola was available in the market. That’s when postcards featuring Gavaskar and Imran Khan were released. However, 1980s saw Campa Cola, which was owned by Pure Drinks Ltd (bottling partner of Coca Cola in India) giving tough competition to Thums Up by cornering a staggering 30% market share. That was when Ramesh Chauhan approached Ashok Kurien and Elsie Nanji (partners at Ambience Advertising) to not only devise a new communications campaign for the brand, but also strategise a complete business plan to market the product. And so were born the legendary taglines: Toofani Thanda and Taste the Thunder in 1987. Campa Cola was also launched in the 1970s and had a taste similar to that of Thums Up – strong, fizzy and high on carbon dioxide levels. However, contrary to the taste of Campa Cola, its positioning was that of a drink for good times. Explains Neeta Wali, Director, Brand Talk, “1980s was an era when the Indian youth was more rebellious & flaunting in nature. It believed in showing off its machoism and Thums Up fitted nicely with the then youth ideology as opposed to the ‘fun-time’ positioning of Campa Cola. Campa Orange made the same mistake and failed.”
For more articles, Click on IIPM Article
Source : IIPM Editorial, 2012
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
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The year was 1977. Eight years had passed since Parle had purchased brand Bisleri from Italy’s Felice Bisleri and just one year since the launch of an unknown lemony drink called Limca. Ramesh Chauhan, along with brother Prakash and CEO Bhanu Vakil, were counting the days for the launch of their flagship soft drink – a carbonated cola drink. The brothers knew their job was tough. Per capita consumption of cold drinks (then) was worse than expected for an anyway below average market. But Ramesh Chauhan wasn’t that worried. He’d seen tougher times since the day he had started his career as an employee in an Indian post office. He knew he could work it out...
The American soft drink giant Coca Cola’s headquarters had just left India following the introduction of Foreign Exchange Regulation Act (FERA) whereby it was asked to reduce its equity stake to 40% even in their technical and administrative units (Coca Cola refused, and exited). And as the black cola market was bereaved by the sudden absence of Coca Cola, the Chauhan brothers, taking advantage of this void, launched Thums Up, which was an instant hit in metros (It was later launched on a pan-India basis in 1981). Since then, in 33 years, the brand has dethroned the leaders, outpaced the laggards, walloped the upstarts, horsewhipped the substitutes, and even changed hands (as is perhaps too well known, Ramesh Chauhan sold brand Thums Up to arch rival Coca Cola in 1993 for $60 million – a decision he doesn’t regret till date).
Circa 2010: Thums Up is India’s largest selling carbonated cola drink with a market share of 16.4%. Much has changed in the years that have gone by, but what has remained unchanged is the fiercely competitive battle between the major soft drinks makers. If today the warring factions include PepsiCo and Coca Cola, the late 1970s and early 1980s era saw the combatting battalions of Campa Cola (from the stable of Pure Drinks Ltd., which later also introduced Campa Orange) and Double Cola (a US-based soft drink). Despite that, the brand Thums Up still remains the market leader with Pepsi commanding 13% share and Coke 8.2%. Thus, from 1977 to 2010; from Parle to Coca Cola; from Sunil Gavaskar to Salman Khan to Akshay Kumar – ‘thunder’ has remained a durable proposition, outbeating many product life cycle theories by decades. And that’s the crux of this cover story – how in heavens does Thums Up keep stealing the thunder?
If Wal-Mart became iconic for ‘Always Low Prices’, there’s no doubt where Thums Up saves its hyperbole in ‘Taste The Thunder’, exemplified contemporarily by an ad campaign of Thums Up where Akshay Kumar (its brand ambassador since 2003) performs the extreme sport of ‘parkour’ to grab his bottle of Thums Up from a suggestively attractive lady. “Taste the Thunder has been the most breakthrough communication campaign for the brand. It stands for masculinity that has constantly been redefined over the years, yet keeping the execution relevant to today’s times,” says K. V. Sridhar, National Creative Director, Leo Burnett (the agency which handles Thums Up’s account) to 4Ps B&M. But then, the acutely bewitching punch-line of Taste the Thunder did not come about so easily. Some would know this, that when Thums Up was launched in 1977, Ramesh Chauhan unabashedly played to the galleries by tagging Thums Up with the caption Happy days are here again that indicated that the market was free from the ‘capitalist international companies’ (PepsiCo and Coca Cola) and an Indian cola was available in the market. That’s when postcards featuring Gavaskar and Imran Khan were released. However, 1980s saw Campa Cola, which was owned by Pure Drinks Ltd (bottling partner of Coca Cola in India) giving tough competition to Thums Up by cornering a staggering 30% market share. That was when Ramesh Chauhan approached Ashok Kurien and Elsie Nanji (partners at Ambience Advertising) to not only devise a new communications campaign for the brand, but also strategise a complete business plan to market the product. And so were born the legendary taglines: Toofani Thanda and Taste the Thunder in 1987. Campa Cola was also launched in the 1970s and had a taste similar to that of Thums Up – strong, fizzy and high on carbon dioxide levels. However, contrary to the taste of Campa Cola, its positioning was that of a drink for good times. Explains Neeta Wali, Director, Brand Talk, “1980s was an era when the Indian youth was more rebellious & flaunting in nature. It believed in showing off its machoism and Thums Up fitted nicely with the then youth ideology as opposed to the ‘fun-time’ positioning of Campa Cola. Campa Orange made the same mistake and failed.”
For more articles, Click on IIPM Article
Source : IIPM Editorial, 2012
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM in sync with the best of the business world.......
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM RANKED NO.1 in MAIL TODAY B-SCHOOL RANKINGS
Planman Technologies
