Well to start with, it all started during a lazy saturday while drinking nimbooz I just thought of that the biggest competitor of a soft drink in sub -urban and rural india is the nimboo pani and in one of the interviews of pepsi ceo he very well said water is his biggest competitor and not coke
Anyway the problem Pepsi people don’t see or don’t wanna see is the fact that the nimboo pani sells because it serves the basic purpose and its CHEAP , Indian market is actually very price sensitive , yes the only way Pepsi can sell its nimbooz at slightly higher price is the fact they can show the water which is being used by local nimbo pani wala may not be hygeinic and may be even go for co branding and say the nimboo pani contains mineral water and hence justify the higher price but still the problem remains because still a large segment of the market is extremely price sensitive and probably wouldn’t like to pay a premium just for the hygienic water
The nimbooz have been priced @ 10 rupees for the 200 ml pet bottle , if you guyz remember the coke campaign of pricing 200 ml coke @ 5 bucks was an instant hit in rural india , the real problem is not just a nimboo pani but the problem is the price
surely water is available in most cities for free and surely Pepsi has to fight with water when it comes at quenching thirst but surely consumers are ready to pay a premium only when u add things such as sugar and other additives but then how much todays if they feel the threat is nimboo pani tomorrow it mite just come out that jaljeera is the other competitor
would surely like to hear out the views of other learned people
Friday, July 24, 2009
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