Campa Cola Needs More Than Nostalgia—Differentiation, Not Discounts, Will Keep it Afloat

When Reliance reintroduced Campa Cola to Indian shelves, it wasn’t just relaunching a product—it was entering one of the most fiercely contested FMCG segments, long dominated by Coca-Cola and Pepsi. And yet, the go-to-market strategy reeks of a commodity play: cost leadership, deep discounting, and brute-force distribution. It may work in the short run.

But if Campa Cola is to stay relevant in a market that’s rapidly evolving and increasingly fragmented, it must shift gears from cost leadership to strategic differentiation. Because let’s face it: Gen Z doesn’t remember Campa Cola, and for Gen Alpha, the name might as well be an NFT

The Nostalgia Trap

A Broken Crutch It’s tempting to position Campa Cola as a symbol of ‘90s nostalgia. But who exactly is nostalgic here? The cohort that actually drank Campa Cola in its heyday is now well into its 40s and 50s. This demographic isn’t driving cola sales anymore. Millennials came of age in the Pepsi-Coke duopoly era. For Gen Z and Gen Alpha, Campa Cola holds no emotional currency. If anything, the name sounds like a budget imitation. Simply put, nostalgia is not a viable moat—certainly not in an industry where taste, aspiration, and visibility dictate consumer preference.

Why Cost Leadership Alone Won’t Cut It

The Indian carbonated beverage market is notoriously cutthroat. Coca-Cola and Pepsi have spent decades and billions building moats: brand loyalty, product variants, cold chain infrastructure, and omnipresent distribution. RC Cola tried cracking this duopoly in the early 2000s, offering low prices and an “imported” sheen. It fizzled out. The lesson? You can’t outprice giants who’ve already optimized costs at scale. Reliance has the muscle, sure. But if low pricing is the only game, it risks creating a low-margin, zero-loyalty brand—one that’s first off the shelf when a retailer runs out of fridge space or when discounts dry up. This is not a moat. It’s a trap.

Differentiation is the Only Way Up

What Campa Cola lacks in nostalgia can be built through novelty. Look at how Sting (PepsiCo’s energy drink) and Lahori Zeera have captured attention. These aren’t traditional colas, but consumers don’t care. They are localised, bold in flavour, and have a certain streetsmart coolness. Even Paper Boat, by capitalizing on regional tastes, created a premium niche in beverages. Campa needs to play a similar game: experimental flavours, limited editions, and perhaps even caffeine-infused variants targeting college students. Why not a "Campa Chilli Cola" or a "Lychee Lime Fizz"? A differentiated taste portfolio with regional flair can punch through the clutter in a way that a discounted vanilla cola never will.

The Real Route-to-Market Problem

Reliance is not a pure-play FMCG company—and this matters. Coca-Cola and Pepsi have perfected FMCG distribution over decades, with robust cold chains, retail relationships, and institutional sales expertise. Reliance, by contrast, is still learning the ropes. Its attempt to back Campa with its own retail muscle, notably through JioMart, sounds good on paper—but execution has been patchy. JioMart, despite entering quick commerce before many others, has been a slow starter.

Its delivery timelines, user interface, and stock availability still lag behind Blinkit, Zepto, or Swiggy Instamart. If Reliance thinks Campa Cola will dominate shelves simply because it owns the shelf, it’s mistaken. In the beverage business, execution beats ownership. Visibility in fridges, presence in local kiranas, and smart bundling with snacks or combos are the things that drive trial and habit. P&G’s “Project Golden Eye” offers a lesson. It identified high-potential retailers and aligned incentives to maximize shelf impact. Campa must adopt a precision-led, not brute-force distribution strategy.

Economies of Scope, Not Just Scale

Reliance’s ecosystem—JioCinema, JioSaavn, AJIO—offers Campa an edge if leveraged creatively. Think digital product placements, cross-brand bundles, or loyalty programs that reward Campa purchases with OTT perks. This is economies of scope in action. However, such integration needs imagination, not just integration meetings.

The Final Word

Campa Cola must not try to win by being Coke or Pepsi at a lower price. That path leads to low margins, no loyalty, and eventual irrelevance. If it wants to carve a meaningful space, it must differentiate—through flavour, narrative, distribution, and presence. Reliance may own the pipes. But in beverages, it’s not about who owns the shelf—it’s about who owns the sip. And nostalgia is dead. Differentiation is the new cool.

(Dr. Kiran Mahasuar is an Assistant Professor in the Strategy, Innovation, & Entrepreneurship Area at IMT Ghaziabad. Views expressed are personal.)