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
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2 comments:
I think that price may not be the only criterion. The product can sell in urban regions if it can be perceived as cool and hap. Infact if its cheap beyond a certain price then it may inspire a feeling of not being quality product. in my opinion pepsi/coke can never replace water. but the company will have to have a balance between its urban and non-urban consumer base. The other factor being that even if by reducing the price from rs.10 to rs.5, even if the sales doubles, the company gets the same revenue.
i knew U were interested in Fluids.. bt nimb panni!! :D On a serious note, hav pitched up a very valid point. Y r u going for phd dude.. u will make a better manager ;)
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