
By Wesley Ngwenya
Sitting at a table in a restaurant on Cairo Road, in downtown Lusaka, I eagerly wait for my drink. I haven’t had this drink for more than three years. I wonder if I still remember the taste of it. In fact, for the first time, I am quite excited ordering this drink. The drink comes in a 350mls bottle. I waste no time and take a long sip of the contents of the bottle. I put the bottle down simultaneously burping and feeling embarrassed. “This Pepsi is really going down”, I thought.
I have never really been a big fun of Pepsi. In the United States, where Pepsi competes neck-to-neck with Coca-cola, I would only order or drink Pepsi when Coca-cola was not available. I am not sure I will continue drinking Pepsi in place of Coke but, at the moment, you get more for your money than you get for Coke. The Pepsi 350mls bottles are going at K2,200 while the Coke 300mls are going at K2,500 retail price.
Pepsi came to Zambia about six months ago under the franchise of Varun Beverages a subsidiary of RJ Corporation of India. The company is expected to invest about $30 million in the next six years here in Zambia. The company has invested in a multi-million dollar massive plant on Mungwi Road in the same neighborhood of the rival distributors of Coca-cola Zambian Breweries.
Pepsi has also invested hugely in advertising its products. Huge outdoor billboards, although not quite innovative, have been placed all over Lusaka. The company has also done well with how they display their products in major supermarkets and restaurants.
It will be interesting to know, from Pepsi, if this investment is beginning to pay off or not. This may be too early to determine, though, considering that they have been in existence for only six months. However, from the look of things Zambians seem to be determined to taste the new drink in town. Whether this is out of curiosity, the price or the quantity it is not clear but it sure seems to be working for Pepsi.
Meanwhile, the rival Coca-cola seems not to be responding. Is it because Pepsi’s presence in town is not really affecting their sales? Are they locked up in the boardroom mapping up a strategy how they can respond to the new rival in town? Besides, Pepsi hired some of the middle managers at Coca-cola.
If Coca-cola does not respond soon, Pepsi is bound to take the market share from it. The Zambian consumers are price sensitive and Pepsi’s pricing strategy seems to be working really well. In addition to Pepsi Cola, the company has introduced on the market its Mirinda Orange drink as well as the 7 Up to compete with Fanta and Sprite respectively. Personally, it was my first time to taste the Mirinda Orange drink and I am not sure I will be buying Fanta anytime soon. It is indeed a good product which will give Fanta a good fight. Will Pepsi introduce more products, on the market, in the next few years? Are we going to see Mountain Dew or Sierra Mist?
The challenge that both companies will have to face, on the local market, is to sell themselves as local companies. Coca-cola has alienated itself from the Zambian market through its SABmiller franchise. It is viewed as South African and most of its top managers are South Africans. Already, there is talk about Pepsi’s hiring people from India to be managers at its plant here in Zambia.
Both companies have an obligation to invest in the communities that they are working in. Mungwi Road needs major repairs. Although both of these companies are the major users of this deplorable road, there has been no initiative to repair the road. What are the companies doing about protecting the environment? Are they using Zambian suppliers? Are they paying the Zambian workers a living wage? These are fundamental questions that need to be asked as time goes by.
Meanwhile, as consumers, we shall sit back and relax and watch how the fight plays out here in Zambia between Coca-cola and Pepsi. It is perhaps, noteworthy to say that in the United States Pepsi has never beat Coca-cola in its sales on the beverage. Will Pepsi break that record in Zambia?