NEW DELHI (PTI): After the ad wars Pepsi has decided to take the battle 10 Coca-Colas doorstep. The company has dropped prices of its 300 ml bottle by a rupee to Rs 4.50 (about 30g) making it 50 paise cheaper than Coca-Cola.

Industry sources said that the prices are being reduced for a “short period” to capture as such market share as possible before the summer ends.

However Pepsi sources maintained that prices are being reduced not with an intention to answer back Coca-Cola.

The fact is that our sales have grown by $5% after the launch of Coca-Cola. it is a gift to all our Pepsi fans” the company’s officials said.

The first shot in the price war was fired by Coca-Cola when it launched its 300 ml bottle at Rs five (32¢). Pepsi which was selling at Rs 5.50 (about 32¢) has now decided to heat up the soft drink market by dropping the prices further

According to sources the Cold war that is confined to Pepsi and Coca-Cola worldwide was only expected to start in the sub-continent. The first round of war took of last month when Coca-Cola launching in the Indian Capital claimed its advertisement that “It the Real Thing.”

Pepsi on the contrary advised everyone to drink Coke and asked the consumers to let their tongues do the talking afier drinking only to arrive at its slogan “Yehi Ha Right Choice Baby” (This Is the Right Choice Baby)

The price war is the toughest of all and hits at the bottom line of both the companies.

The other areas whore the two US-based soft drink giants try to steal the show over each other is in sponsoring of sports tournaments and using different kind of vehicles to promote their products

In India Coca-Cola is yet to sponsor any sports tournament though it is extracting considerable mile age from the world cup soccer for which they are among the biggest official sponsors. Pepsi on the other hand is the only sponsor for Cricket tournaments.

Though Coke is too new to match Pepsi in these areas reports say it hit out at Pepsi by Launching 300 ml bottles at lesser price in New Delhi.

Article extracted from this publication >> July 8, 1994