Pepsi vs Coke

1526 words 7 pages
Pepsi vs Coca Cola
For more than a century, Coca Cola and PepsiCo have been the major competitors within the soft drink market. By employing various advertising tactics, strategies such as blind taste tests, and reward initiatives for the consumer, they have grown to become oligopolistic rivals. In the soft-drink business, “The Coca-Cola Company” and “PepsiCo, Incorporated” hold most of the market shares in virtually every region of the world. They have brands that the consumers want, whether it be soft-drink brands or in PepsioCo’s case, snacks. With only one soft-drink market, the two competitors have no choice but to increase sales by stealing the other competitor’s clients. This led to the term, the “cola wars” which was first used
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According to Forbes, back in the 1980s, when Pepsi announced that they had “won the Cola Wars,” CEO Roger Enrico declared, “It gives me great pleasure to announce that after eighty-seven years of going at it eyeball to eyeball, the other guy just blinked.” This statement emphasizes the difference between today’s PepsiCo Inc. shares and brand equity compared to a point of time in which it was the top brand. As Robert Passikoff, Contributor to Forbes states, Pepsi’s recent loss in “brand equity -- attendant loyalty and profitability – proves that, while history may be written by the victors, the future is anyone’s story.” PepsiCo Inc. knows that in an elastic drink market, a company could quickly earn consumer loyalty, so in February of this year, PepsiCo Inc. announced that it would increase its marketing budget this year by $500 million in order to build the brand. Abiding by this revamping of marketing, PepsiCo Inc. will have a new installment of the Pepsi taste challenges, targeting 1.5 million Canadians. PepsiCo Inc. is reinstating its brand by investing in the consumer, which is a smart choice considering the fact that it lives in oligopolistic competition with Coca Cola. While Pepsi is sold around the world, it has a 10-percent global market share compared with Coke’s 25 percent,


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