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Thums Up - Storms ahead
 

Thums Up - storms ahead


  Thums Up
storms ahead
December 20, 2004

Thums Up went from being the only cola in the cantina to facing competition from both Coca-Cola and Pepsi. Twenty-six years later it’s still a top cola in India and is one of the strongest brands in the country across categories. The brand name’s positive associations of victory, achievement and celebration are apparently merited as it continues to do well despite a challenging landscape.
 
 

Thums Up’s first competition came in the form of Campa Cola. There were allegations of aggressive exchanges between the two brands at street level but Thums Up (owned by Parle at the time) apparently won the battle both on the ground and in the consumer’s mind. Campa Cola discontinued in 2000 (only to re-emerge as less of a challenger in 2002 from Pure Drinks New Delhi).

For a short while Thums Up’s strong taste enjoyed success across the country with scarcely any competition; the brand reigned supreme in the cola market (even though it did not refer to itself as a cola).

In 1990, the Indian government opened the market to international brands, and Pepsi was the first in. Thums Up went up against the international giant for an intense onslaught with neither side giving any quarter.

The entry of Coke, in 1993, made things even more complicated and the fight became a three-way battle. That same year, in a move that baffled many, Parle sold out to Coke for a mere 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 psyched-out Parle. Either way, it was now Coca-Cola’s, and Coke has a habit of killing brands in its portfolio that might overshadow it.

Coca-Cola apparently did try to kill Thums Up, but soon realized that Pepsi would benefit more than Coke if Thums Up was withdrawn from the market. Instead, Coke decided to use Thums Up to attack Pepsi.

Thums Up had the equity to take on Pepsi and soon an all out war was on. In 2001 Thums Up took the battle to Pepsi by openly challenging it to a blind taste test. The aggressive move was intimidating and unexpected, turning the tables on Pepsi, which was now at the receiving end of a taste challenge. The results from the challenge were in dispute from both ends but the battle of the mind was won by Thums Up, whose advertising overshadowed the question of accuracy.

Still, despite its strong equity overall, the brand was losing its popularity among the core cola drinking age group of 12 to 29 year olds.

The brand was 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, older consumers mix it with rum for a “rum and Thums Up.”

The brand launched a campaign that focussed on the strength of the drink, hoping that the depiction as 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 northwards. 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’s build on the “strength” of its cola and build associations as a macho drink. Ads showing the Thums Up man riding through the desert in search of a cantina that sells Thums Up rather than drink another cola stick in the minds of many Indians and caught the imagination of youngsters who want to be seen as men.

From a brand that was virtually unchallenged to a brand that was stifled, Thums Up stormed back after a near death experience. The brand proves that its strength lies not just in its taste but also in its performance. The grown up tag is an enduring one and will probably counter Pepsi for a while to come.

 
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