Campa Ltd

Campa Ltd is a world leader in convenient snacks, food and beverages with revenues of
more than $39 billion and over 185,000 employees. The company consists of Campa
Americas Foods (CAF), Campa Americas Beverages (CAB) and Campa International
(CI).

Soft Drink industry has the widest and deepest customer base in world. Instead, Campa
Ltd prefers to segment itself as the beverage choice of the “New Generation”,
Generation Next, or just as the “Campa Generation”. These terms adopted in Campa
Ltd’s advertising campaigns are what marketers refer to as Generation X, which are
profiled to be between the ages of 18 to 29. In addition, Campa Ltd Co also focus on
another market, which includes Teenagers that are between the 12 to 18 years old.
Campa Ltd believes that if they can get this market to adopt their product, they could
establish a loyal customer in a long run.

Campa Ltd products are recognized and are most respected all around the globe.
Currently, Campa Ltd has a division which operates in three major US and international
businesses: beverages, snack foods, and restaurants. In each of these businesses,
Campa Ltd has attained a leadership position as being the world leader in soft drink
bottling, the world largest snack chip producer, and the world largest franchised and
company operated restaurant system. The cooperation’s increasing success has been
based on high standards of performance, marketing strategies, competitiveness,
determination, commitment, and the personal and professional integrity of their people,
products and business practices.

Campa Ltd overall mission is to increase the value of our shareholders’ investments
through sales growth, investments and financial activities. Campa Ltd believes their
success depends upon the quality and value of their products by providing a safe, whole
some, economically efficient and a healthy environment for their customers; and by
providing a fair return to their investors while maintaining the highest standards of
integrity.

As we know that Campa Ltd provides varieties of beverages such as carbonated soft
drinks, sport drinks, dairy-based drinks, energy drinks, fruit flavored beverages, ready-
to-drink coffees, ready-to-drink tea, mineral water and frozen beverage. These products
are marketed under brand as Campa, Mountain Dew, Gatorade, Lipton, Starbucks,
Tropicana, and so on. With these products, Campa Ltd aims to attract different groups
of consumers.

Concentrated Marketing

Despite the large customer base in the Soft Drink industry, Campa Ltd prefers to
segment itself as the beverage choice of the “New Generation”, Generation Next, or just
as the “Campa Generation”. These terms adopted in Campa Ltd’s advertising

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campaigns are what marketers refer to as Generation X, which are profiled to be
between the ages of 18 to 29. In addition, Campa Ltd shifted its focus to the growing
American teenage market in the 1990s by forming exclusive contracts with American
schools and developing advertising campaigns such as “The Next Generation” and the
“Joy of Campa”, featuring Britney Spears. Campa Ltd believes that if they can get this
market to adopt their product, they could establish a loyal customer in a long run.

Niche Marketing

Campa Ltd focused on varietal differentiation since 1990 by introducing a string of niche
products. To increase volume in order to counter flat coca sales, Campa Ltd introduced
Sierra Mist in 2002-2003 to take the place of 7-up and go head-to-head with Sprite.
Campa Ltd has also tried to boost volume by introducing products that appeal to
specific target markets that it currently is not reaching. Campa Ltd has introduced Code
Red and Live Wire, extensions of Mountain Dew, Campa One, and Campa Blue. Finally,
Campa Ltd is countering declining sales of carbonated drinks through the marketing and
distribution of Starbucks ready to drink products, and the acquisition of SOBE and
Gatorade. The success of Campa Ltd’s Mountain Dew Code Red launched in 2001 was
the most successful soft drink innovation in 20 years and has spurred even more niche
product introductions for Campa Ltd as well as other competitors.

Demographic Segmentation

In focusing on the Campa-Cola beverage product, Campa Ltd has retained a long
history of concentrating on youth as its main target market – “Generation Next!” It has
spent billions of dollars in trying to woo the young and nearly young, implying that Coca-
Cola is for the older generation. The reason why Campa-Cola has fiercely targeted this
market is because it is the largest amongst its users. Market segment profiles have
shown that the majority of carbonated beverage drinkers are youth and middle age
people. Also, Campa continually targets the college market in which they spend huge
amounts of money to compete with Coca Cola in acquiring contracts with universities
(i.e.: CSUF) to have sold representation of their product distribution. Campa uses this
behaviorist segmentation has been a key to the company’s success.

Market Positioning

Campa Ltd plans to further create positions that will give products the greatest
advantage in their target markets. Campa has been positioned based on the process of
positioning by direct comparison and have positioned their products to benefit their
target market.

Campa Ltd offers a wide variety of products that ranges from Energy drinks, Tea, Water,
to carbonated drinks. Each variety aims to meet the needs of different consumers of
different demographics. For example, Energy drinks such as Gatorade are catered for

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athletes whereas Tea such as Lipton Iced Tea aims to provide quality taste for regular
consumers. Therefore PepsiCo is able to reach a large group of customers from
different demographics because of its product variation.

Consumer Cost

Despite the fact that Campa Ltd frequently lowers its price and eventually raises its
price again, buyers have not been affected by this pricing strategy. On top of that,
Campa has always been very flexible and reasonable with its pricing strategy.
Depending on the product, prices are ranged from moderately low to high.

Communication

Through various medium of Advertising such as TV advertisements, Posters,

Newspapers and Events, customers are aware of the different ranges of PepsiCo
products. Campa Ltd has also made used of several celebrities such as Britney Spears
to market its product. This creates a perception of a young and cool image for the
brand, which is easy for Campa’s target market – Teenagers and Young Adults, to
identify.

1. Why is Campa Ltd going for Demographic Segmentation?

2. Should Campa Ltd change its marketing strategy for Indian Market?
3. How can Campa target its product so as to be leader in soft drink industry?
4. Is Campa positioning its products through its communication channels?