ThumpUp
In late 70’s (1978) American cola
giant Coca Cola abandoned operations in India rather than accept a
forced sale of 60% of their equity to an Indian company.
In 1977, the Morarji Desai government asked
Coca-Cola to hand over the controlling stake of its Indian operation to Indian
investors as per the provisions of the Foreign Exchange Regulation Act. This
would have meant that Coca-Cola might have had to share the secret Coca-Cola
formula with its Indian partners. Coca-Cola refused and was asked by the
government to cease its operations in India.
Following this, the Parle brothers launched
Thums Up as their flagship drink, adding to their portfolio of older
brands Limca (lime flavour) and Gold Spot (orange flavour).
Thums Up enjoyed a near monopoly with a
much stronger market share, often overshadowing domestic rivals like Campa
Cola, Double Seven, Dukes and United Breweries Group's McDowell's Crush,
although many small players sold well in their own markets.
In 1990, when the Indian government opened
the market to multinationals, Pepsi was the first to come in. Thums Up and
Pepsi subsequently engaged in heavy competition for endorsements.
Thums Up also introduced a larger 300 ml bottle,
branded "MahaCola" (the original size was 250 ml). This nickname
gained popularity in smaller towns where people would ask for "Maha
Cola" instead of Thums Up. Consumers were divided, with some saying that
Pepsi’s mild taste was rather bland.
In 1993 Coca-Cola re-entered India after a
prolonged absence, spurring a three-way Cola War with Thums Up and Pepsi. That
same year, Parle sold out to Coke for US$60 million. Some assumed Parle had
lost the appetite for a fight against the two largest cola brands; others
surmised that the international brands' seemingly endless cash reserves
overwhelmed Parle. Thums Up had an 85% market share when sold.
Relaunch
after losing ground.
Despite its strong overall equity, the
brand was losing its popularity among the core cola drinking age group of 12 to
25 year-olds, partly due to a lack of advertising.
At first, Coca-Cola cut advertising and
production for Thums Up to drive customers to their flagship band, but soon
realised that Thums Up customers would turn to Pepsi instead of Coke, were
Thums Up withdrawn from the market. Instead, Coke decided to use Thums Up as a
rival brand to Pepsi. The Coca-Cola Company by this time had about 60.5% share
of the Indian soft-drink market but much to its dismay found out that if it
took out Thums Up, it would remain with only 28.72% of the market (according to
a report by NGO Finance & Trade in India), hence it once again dusted off
the Thums Up brand and re-launched it, targeting 30- to 40-year-olds.
The brand was re-positioned as a “manly”
drink, drawing on its strong taste qualities. Known to be a strong drink with
more power packed into it than other colas, it was a favorite in rum-based
cocktails, as in “rum and Thums Up.” Thums Up kick-started an aggressive
campaign directly attacking Pepsi’s television commercials, focusing on the
strength of the drink hoping that the depiction of an “adult” drink would
appeal to young consumers. “Grow up to Thums Up” was a successful campaign. The
brand’s market share and equity soared. The brand was unshakeable and
Coca-Cola’s declaration that Thums Up was India’s premier cola brand in terms
of market share did not surprise many.
Other campaigns from Thums Up build on its
“strength” and its perception as a macho drink.
The famous slogan until the early 1980s was
"Happy days are here again", coined by then famous copywriter, Vasant
Kumar. The slogan later became "I want My Thunder", and subsequently
"Taste the thunder!"