Cola giants shape up for peak season fight

The cola giants have launched their offensives for the summer high season with Coca-Cola firing off a high-tech music hunt and Pepsi lining up football heroes in the battle for a greater share of the 14 billion baht (US$365 million) segment.

Even as the two meet head on in the cola arena, both are simultaneously bowing to the pressure for healthier alternatives, whose share of throat continues to grow at the expense of carbonated soft drinks. Indeed, Pepsi bottler Serm Suk expects its carbonated-drink business to grow six per cent this year, less than half the 14 per cent forecast for its non-carbonated offerings.

Coke this month launched its fifth non-CSD alternative since 2001: A combination of sparkling water, juice, vitamin C and Beta Carotene, 'Alive' is being marketed as a functional drink -- a category first created by Taiwanese beverage firm Uni-President for 'casual' sports drink iFirm in November. Developed for Thailand, Alive is targeted at young urbanites, 20 to 39 years who have embraced an urban lifestyle "that is trendy, in control and active".

"Our research has found that these consumers are looking for 'functional refreshment, beverages that not only quench their thirst, but also makes them feel healthy, vibrant and alive," said marketing manager Chuenhathai Vuntanadit. Alive will be promoted with an integrated sell spearheaded by a TVC entitled 'Miracle', and bearing the slogan 'Life is a miracle, keep it alive'. Sampling exercises will be carried out at Bangkok train stations, office buildings, universities and fitness centers around Bangkok to one million target consumers. Alive joins Namthip water, Qoo fruit juice, Nestéa and RTD coffee Zu in Coke's non-CSD stable. Rival Pepsi, meanwhile, will this year focus on promoting sugar-free Pepsi Max and Crystal drinking water, said Somchai Bulsook, president and CEO of Pepsi bottler Serm Suk. Sales of Crystal climbed 32 per cent to 600 million baht last year, while Pepsi Max added 20 per cent as Thailand becomes more health consciousness.

Marketing activities for Crystal will be geared toward maintaining top-of-mind awareness, while Pepsi Max will be brought closer to consumers via theatre ads and sampling exercises, he said. The activities are expected to add a further 30 per cent to sales this year.

Both giants, meanwhile, have launched extravagant campaigns at the start of the hot season this month -- the highest season for carbonated soft drink, particularly cola, in terms of sales. Pepsi has roped in international football names, including David Beckham, in its latest TVC 'Surf' with the football greats showing off their skills in the sea. The commercial is part of Pepsi's 'Dare for more' pitch, and complements an under-the-cap campaign that offers free holidays. Coke's campaign, which runs until end-May, employs microchips to play the brand's signature tune when winning cans are opened.

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