Pepsi ropes in Charan to take on Thums-Up in AP

PEPSICO India is once again attempting to take on the iconic Thums Up in its strong hold — Andhra Pradesh. The cola major has signed on

Ram Charan to endorse Pepsi in the state as part of the company’s ongoing Youngistaan campaign. Charan is the son of noted Telugu cinestar and now Praja Rajyam president, Chiranjeevi, who was Thums Up’s brand ambassador in AP for a long time.

Confirming the move, PepsiCo India executive vice president (marketing) Sandeep Singh Arora told Brand Equity that with the Youngistaan plank, the company had the proposition that would work with consumers in AP. “We need to strengthen the brand’s stature and local connect and believe that we will be able to do so with Charan.”

Thums Up commands a strong following in AP, West Bengal and parts of UP. Pepsi, according to market observers, has been trying to make repeated inroads in Andhra Pradesh.

Charan is the latest addition to the list of Chiranjeevi’s family members who have endorsed Pepsi to break Thums Up’s hold in AP. The veteran actor, who was Thums Up’s brand ambassador for a long time, was replaced by actor Mahesh Babu in 2007. A few years back, Pepsi had roped in Chiranjeevi’s brother Pawan Kalyan and even his nephew in their campaign but with little success. “

People have accepted Charan as a Pepsi endorser, but it’s no where close to Thums Up’s association with Chiranjeevi. Thums Up’s stature is like Chiranjeevi. It’s an iconic brand,” KV Sridhar, NCD, Leo Burnett, the agency that handles Thums Up, said.

Despite the fact that it remains restricted to pockets, Thums Up has become the largest selling cola, not only within Coca Cola India’s portfolio, but also in India. “It sells in 30% of the market, but is still the number 1 in India,” says Sridhar. According to AC Nielsen data, Thums Up is the no. 1 dark-cola beverage brand with a 16.4% market share in India, followed by Sprite with 15.6 % and Pepsi at 13%. The Indian soft drink market stands at Rs 7,500 crore, of which colas constitute 38% followed by clear-lime brands like Sprite and 7 Up at 21 %.

Pepsi’s inability to make a dent in Thums Up’s share in AP comes from the beverage taste that has found a strong affinity with the locals. Thums Up’s extra fizz compared with other dark colas finds favour with the local populace that has a penchant for spicy food.

“AP is significant not only for Pepsi, but also for 7 Up as Sprite has risen through the ranks in terms of market share,” says a senior creative director from an agency handling brands within PepsiCo India’s portfolio. However, Mr Arora said: “7 Up has had an excellent year in 2008 gaining share and strengthening its equity in AP. We will continue to invest in 7 Up.”