paint-brush
Pepsi vs Coca-Cola: A Marketing Battle for the Agesby@favourefe
1,191 reads
1,191 reads

Pepsi vs Coca-Cola: A Marketing Battle for the Ages

by Favour EfeogheneMarch 5th, 2024
Read on Terminal Reader
Read this story w/o Javascript
tldt arrow

Too Long; Didn't Read

The Pepsi vs. Coca-Cola clashes teach us an invaluable lesson about outperforming in marketing. These brands have been struggling for ages, changing their strategies constantly to stay relevant; from creative ads to digital excitement. They have adjusted to what people care about, their rivalry is not just about the products, it is all about the fluid nature of marketing. Watching them, we learn how brands can continue to develop and connect with customers,  now and in the years to come.
featured image - Pepsi vs Coca-Cola: A Marketing Battle for the Ages
Favour Efeoghene HackerNoon profile picture

Back in 2020, Coca-Cola's brand was worth a whopping $84.86 billion, while PepsiCo's brand was valued at $70.9 billion. The time-honored competition between Pepsi and Coca-Cola is legendary in marketing, still influencing the drink market, global marketing, peoples’ choice of product, and brand loyalty. For over a century, this battle has evolved from a taste test to today’s online advertisement. This article delves into the creativity and strategies Pepsi and Coca-Cola implore to win customers worldwide; in this article, we will examine their battles, advertisement strategies, and how they adjust to changing customer tastes to keep their storied rivalry living.

Background

In 1886, in Atlanta, Georgia, Coca-Cola first came to life. It all began when Dr. John S. Pemberton, a pharmacist, created a soft drink that had a unique taste meant to be sold at soda fountains. Frank Robinson his bookkeeper named the drink “Coca-Cola” and also crafted the logo in his handwriting; Coca-Cola was publicized as a stress-relieving drink.


On the other hand, in 1893, Pepsi originally called “Brad’s Drink” was created by Caleb Bradham a pharmacist from New Bern, North Carolina. Brad’s Drink was later renamed Pepsi-cola in 1893, this change of name was inspired by the digestive aid; pepsin, and kola nuts which were used in the recipe. Pepsi was promoted as a tasty and healthy digestion-aiding beverage.

\When Coca-Cola started its marketing journey, emphasis was laid on how refreshing and satisfactory it was. The brand was ahead of the game as it was the first to use branded merchandise, by distributing items like calendars and clocks with their logos on it to promote their brand. In 1916 Coca-Cola decided to switch up its marketing tactics with the introduction of the popular bottle shape; this made it different, and more recognizable in different places. In 1927 they created the largest soda fountain in the world.


At first, Pepsi started by promoting its health benefits, strategically placing itself as a digestive aid. During the great depression that occurred in the 1930s, Pepsi became popular for selling double the amount of soda for the same price as Coca-Cola ( that is, 12 ounces of the beverage for the same price as 6 ounces of Coca-Cola) this became their unique selling point.             Pepsi came up with another approach in the 1960s which was the “Pepsi Generation” campaign,  they tried connecting with younger people; this act was the starting point of the famous Cola wars with Coca-Cola.

Key Marketing Battles

In the famous taste battle between Pepsi and Coke, the numbers show who's winning. In 2020, Coke had a big chunk of the market, with 43.7%, while Pepsi had 24.1%. This tells us a lot about what people like and how loyal they are to these brands.


The Cola Wars represents one of the most notable marketing showdowns in marketing history, embodied by the Pepsi generation campaign. It all began in the year 1975 when Pepsi organized a blind taste test to see which product people liked better, Pepsi or Coca-Cola. This made Pepsi very famous, Coca-Cola could not just watch but felt the need to do something. In 1985, Coca-Cola responded by changing its recipe to “New Coke”, this move had no positive outcome; eventually they brought back their original recipe and called it “Coca-Cola Classic”. It was a valuable learning experience for both companies.


Right from time, backing up a product with a famous person has always been a powerful marketing tool, companies believe that having a celebrity support a particular product will make people have more interest in it. Pepsi and Coca-Cola have thoroughly utilized these tactics, and prominent figures like Michael Jackson and Britney Spears have endorsed Pepsi. On the one hand, Coca-Cola has endorsed icons like Selena Gomez, Marilyn Monroe, and others recently. These endorsements, not only boost the brand’s visibility; it also contribute to shaping its identity by connecting it with the irresistible appeal and charisma of celebrities that support them.


Lately, staying healthy has been a priority for a lot of people, companies like Pepsi and Coca-Cola have taken note of this, and they have adapted to this trend by expanding their options, adding healthier choices like juice, water, and drinks that contain fewer calories; their advertisements are also changing emphasizing the nutritional value of these products. This change highlights how important it is for companies to keep the needs of people in mind.

Comparative Analysis of Marketing Strategies

At first, Marketing was usually all about reaching large groups of people based on age, gender, and income. However, today’s marketing is about targeting specific individuals and customizing messages just for them. Companies now make use of data analytics to figure out people’s interests and behaviors, and then send messages that resonate. Change like this reflects an understanding that in a diverse world, a generic approach will not be effective because people's preferences cannot be the same in a globalized market.


Over time, advertising has changed. At the start we used to see ads on traditional platforms like TV and newspapers, now we see them on the internet and social media; every form of advertisement has its benefits. TV ads reach a large group of people while online advertisements reach specific individuals only. Social media has changed marketing a lot, companies can now reach their customers right away and get feedback; the best part is with online advertisement we can measure how well it works through metrics like clicks and shares. With this, companies can identify areas for improvement and adjust their ads to get good results.


Brands' messaging and positioning have gone through massive change too, in the past, Brands only emphasized their products’ features and benefits. But now through storytelling, they create an emotional connection with people; they do not want to be just providers of goods and services alone, they want to be like friends who share the same dreams, values, and worries. This is about building strong bonds with people and fostering dedication even in a saturated market.

Iconic Campaigns and Their Impact

In the 1980s, Pepsi came up with a brilliant idea called the “Pepsi Challenge” It was a blind taste test where people did not know which of the sodas they were drinking, Pepsi or Coca-Cola. This was a daring move that boosted Pepsi's sales and positioned it as a confident, unconventional, youth-oriented brand. Another remarkable campaign was “The Choice of a New Generation”, this campaign featured celebrities of that time making Pepsi much cooler for younger people.


On the other hand, Coca-Cola has a natural talent for creating campaigns that make us feel warm and connected. Remember the ”Share a Coke” campaign? Which featured bottles with customized names, it made buying a soda feel so personal and fun. It strengthened  Coca-Cola as a brand that was about bringing people together. Who can forget those Christmas trucks? “The holidays are coming” ads always marked the start of a festive season, making us feel very excited; Coca-Cola sure knows how to spread happiness and celebration.


The way people see Pepsi and Coca-Cola was influenced by these advertising efforts. Pepsi is known as a brand that is cool and daring, having a desire to challenge existing ways of doing things and exploring new possibilities. Coca-Cola, conversely has positioned itself as a classic symbol that brings people together, making moments happier and more enjoyable.

The Role of Innovation in Marketing

When a new product is launched it captures people's attention, and brings excitement; using initiative marketing techniques like sneak pics and collaborating with famous people makes the whole experience very exciting.


The packaging of a product is not just about aesthetics; it is about making sure they are easy to use, suitable for the environment, and gives a pleasant experience when it is being unboxed.  Coca-Cola bottles with people's names on them or Amazon user-friendly packaging can be taken as an example; it shows how packaging can make a brand look unique and influence consumers' preferences.


The way brands connect with people has changed through digital marketing, they now make use of social media platforms, super cool digital encounters, and customized emails making the connection with consumers more personal and fun. Nike uses AR to launch their sneakers, and Spotify makes playlists just for you;  using new technologies to make memorable experiences that people love, makes customers stay loyal to the brand.

Global Reach and Localization Strategies

Coca-Cola and Pepsi are experts at adjusting their marketing tactics to fit different global markets. They don't just translate words they also change colors, themes, and messaging to match different local cultures. Coca-Cola's “Open Happiness” campaign was themed universally around joy and being together; local celebrities were featured and things in cultural reference to different cultures were also used to make the connection feel more personal for the people there.


Understanding and respecting cultural differences is crucial. Coca-Cola and Pepsi have learned this aspect; Pepsi's journey to India is a good example, during Pepsi's expansion into India they didn't just advertise their product but also engaged in a big part of the Indian culture which was cricket. This way, they became an integral part of Indian recreation activities.


Coca-Cola's strategy in China shows that adapting to local culture can be successful, They incorporated Chinese symbols and partnered with popular artists to be well-known to Chinese people. Conversely, Pepsi had issues with the Philippines because of a branding mistake that did not respect their local custom. This highlights the challenges that follow global marketing.

The Current State of Battle

Pepsi has relied heavily on entertainment, teaming up with notable stars and important occasions to win young people over. Focusing on digital platforms and social media engagements allowed them to create interactive and viral content that gets people talking and sharing online. On the other hand, Coca-Cola focuses on emotional branding with campaigns that give people a feeling of joy, togetherness, and shared experience; their “open happiness” and Share a Coke” can be used as an example, it has been successful in promoting a positive brand image across different regions.


Regardless of the competition, Coca-Cola maintains a lead worldwide because its brand is loved by people wherever you go. However, Pepsi is making major progress in certain markets by offering healthier snacks and drinks people want currently. Both Pepsi and Coca-Cola have dedicated fans though customers are leaning toward healthier, low-sugar, and eco-friendly alternatives.


In the future, Pepsi and Coca-Cola are striving to be more than just companies that make drinks. Coca-Cola is working hard to be eco-friendly by reducing its emissions and making its packaging easier to reutilize. Meanwhile, Pepsi is also big on sustainability but is investing in digital technology to make sure customers have a wonderful experience with their brand.

Final Thoughts

The Pepsi vs. Coca-Cola clashes teach us an invaluable lesson about outperforming in marketing. These brands have been struggling for ages, changing their strategies constantly to stay relevant; from creative ads to digital excitement. They have adjusted to what people care about, their rivalry is not just about the products, it is all about the fluid nature of marketing. Watching them, we learn how brands can continue to develop and connect with customers,  now and in the years to come.