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Case study Coca Cola vs Pepsi: historical rivalry

The historical rivalry of Coca-Cola and Pepsi has its origin since both brands entered the market, at the end of the 19th century , and since then they have had their commercial plateaus among the audience . But the important thing is that, regardless of which of the two maintains its leadership, they r emain very present today as the ideal options to accompany a fast meal at a meeting with friends.

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Coca-Cola is a company founded a few years before Pepsi , and it could be said that it was the pioneer in incorporating the refreshing drink with coca extracts and caffeine , which has stimulating or energizing effects for the body, in addition to a large amount of not-so-healthy sugar , but curiously addictive, in combination with the rest of the other properties.

In the case of Pepsi , it is a drink created by PepsiCo with characteristics similar to Coca , with a similar flavor but slightly less sweet and with more gas. Emerging after Coca-Cola was his biggest challenge because it was not easy for it to be at the same place on the podium of consumer preferences.

However, there is a very loyal public of Pepsi , and to this day it is a beverage that people continue to choose, perhaps not as massively as its historic rival, but it manages to maintain a comfortable second place , which at times takes away the first place.

In today's case study , we'll be breaking down the historical rivalry between Coca-Cola and Pepsi , who came first, which of the two brands has achieved greater success over time, and what we can expect from these two giants in the future.

Case Coca Cola vs. Pepsi: the origin of the two companies.

Both Coca-Cola and Pepsi are sugary soft drinks sold worldwide , whose formulas were created by pharmacists and distributed as energy drinks for a public that wanted to consume strong non-alcoholic beverages that were pleasant to the palate. Over time, both beverages achieved a large market share and became highly social drinks .

John Pemberton was the inventor of the Coca-Cola beverage in 1886, in a formula based on coca leaves and cola nuts , which i n the early years contained cocaine and, from 1903, was replaced by caffeine. The pharmacist began to distribute t he drink as syrup to combat digestive problems and also provide a little energy to the body.

Pemberton realized that his drink could become a big business , so he commissioned a logo and in 1891 The Coca-Cola Company was founded. From then on, the company expanded to the world with great success , even reaching the Asian market with a name adapted to Chinese ideograms meaning "delicious happiness".

On the other hand, Pepsi emerged in 1893 and was created by the pharmaceutical chemist Caleb Bradham , who just five years later baptized it with the name of Pepsi Cola . Like Coca-Cola, Pepsi began to gain relevance among consumers, especially among car racers , who considered it a very tasty, refreshing, and stimulating drink.

However, in 1927 the company declared bankruptcy after the sharp decline in the price of sugar , when its founder and other manufacturers bought the ingredient in large quantities, although the price did not stop constantly rising.

After the bankruptcy, Roy Megargel formed the Pepsi Cola company and bought all the assets and the trademark from the creditors, for a sum of 35,000 USD. Although Coca-Cola had the opportunity to buy Pepsi Cola three times, in the end, it declined the offer.

Charles Guth , president of Loft Inc, took over the company from that moment on, and it was from then on that the company began to compete vigorously against Coca, even seeking to partially modify the formula so that it would be more similar to its rival Coca-Cola.

The beginning of the eternal rivalry: Coca-Cola vs. Pepsi.

While Coca-Cola developed its famous curvy bottle, expanded to Europe, and signed contracts with big celebrities, Pepsi went bankrupt because of the First World War . In 1931, it went bankrupt again but managed to quickly get back on its feet . So much so that, during the Second World War the number of advertising actions increased , which allowed it to sell soft drinks in cans.

Starting in the 1950s , Coca-Cola began to promote itself on television, while Pepsi decided to bet on rebranding , to keep up with its rival.

In 1962, Coca-Cola launched Sprite, one of the company's largest soft drink brands. For its part, Pepsi merged with Frito Lay to create Pepsico . This merger brought great economic benefits to Pepsi, surpassing its rival in profitability, due to the wide range of snack products that the company came to market. Instead, Coca-Cola did not go beyond the soft drink industry.

While Coke's catalog of brands is broader than Pepsi's, the latter makes up for it with huge global sales of its snacks. In addition, although Coca continues to be the undisputed leader in the beverage and soft drinks market, Pepsi obtained higher revenues thanks to the great diversity of products.

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The advertising battles of Coca-Cola and Pepsi throughout history.

Coca-Cola , perhaps due to its comfortable leadership, used more stereotypical symbols , such as the polar bear and Santa Claus for Christmas advertisements, which pointed to illusion, magic, and family unity . Instead, Pepsi's campaigns were aimed at discrediting Coca and its symbols , trying to show that it does not deserve its leadership position.

During the 1940s, Walter Mack was at the helm of Pepsi-Cola , and at that time he stood out for supporting progressive causes , during an era marked by racism. Therefore, he considered that the advertising strategy was aimed at the general public, but that excluded or denigrated African Americans.

Thus, the company decided to invest in campaigns aimed at this racial sector to expand its market share . Despite the sugar crisis, Mack came to form a sales team solely to attract the public of color, for which they suffered a lot of discrimination , both from Pepsi employees themselves and from entities such as the Ku Klux Klan and the laws of racial segregation in force in the country.

Even so, the company increased its market share considerably and was able to take advantage of its inclusive policy to denounce the racism of Coca-Cola for promoting a drink for whites only.

It also outsold its rival in sales during that time in Chicago , but the company was concerned that it would increase that racial market segment among customers . Therefore, after repeated pressure, Walter Mack left Pepsi-Cola , and his sales team to attract the African-American collective was dissolved.

Already in the 1970s, the clearest example of making a marketing strategy against its main competitor is the controversial campaign launched in 1975, called " Pepsi challenge ", where the firm defeated its competitor with a test of the two flavors of soda , totally blind, in which people had to try two unlabeled cups with each of the brand's contents inside.

Only in this way, he appealed to an honest test in which people, without knowing what they were drinking, chose the drink they liked. Thus, many people chose the taste of Pepsi over that of Coca-Cola , so PepsiCo invested large sums of money in advertising, hiring celebrities such as Michael Jackson, Tina Turner, and Michael J. Fox, among others, to promote the drink among young consumers.

Of course, Coca also carried out campaigns in response to Pepsi's hints, which sought to ridicule its constant siege to gain positioning. So it is that to this day Coca Cola remains the number one brand of beverages, while Pepsi remains in second place following in its footsteps, lurking and waiting for the moment to take the big leap that will take away the leadership.

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To conclude, in this case study Coca Cola vs. Pepsi , we've seen that these two companies fight since time immemorial and that few rivals have attacked each other so much throughout history to gain first place in the market of their industry.

For being the first to launch the drink and for incorporating that characteristic flavor, Coca is more popular and known among people worldwide, but we can't forecast anything in the brand war.

So, what beverage do you prefer, Coke or Pepsi?

Drew's editorial team

¿nos dejas un comentario.

COKE VS. PEPSI: The Amazing Story Behind The Cola Wars

The rivalry between Coca-Cola and Pepsi is legendary. Although the feud really heated up with  the Pepsi Challenge  in 1975 —which prompted Coca-Cola's  horrific New Coke debacle  — the brands have been fighting each other for more than a century. 

And not just about product development. Things occasionally get personal, which sometimes resonates in their marketing . Earlier this year, Pepsi went after Coke's famed mascots , the polar bears and Santa. 

The feud has even moved  into outer space  and raged  over social media . 

So how'd it become this way?

The folks at CnnTees put together an amazing infographic entitled "The Soda Wars" that includes everything you'd ever want to know about the history of Coca-Cola and Pepsi. Take a look:

The saga began in 1886, when John S. Pemberton developed the original recipe for Coke. Here's what was in it:

Pepsi-Cola was created in 13 years later by pharmacist Caleb Bradham

Coca-Cola was already selling a million gallons per year by the time Pepsi came to be

Coke developed its iconic contour bottle, got big name endorsements and expanded to Europe. Meanwhile, Pepsi went bankrupt because of WWI

Pepsi went bankrupt again eight years later, but this time it rebounded

During WWII, Pepsi amped up its advertising and started selling its drink in cans

In the 50s, Coke ads started hitting TV, while Pepsi rebranded to try to keep up

Coke decided to go public in 1962, on the heels of its launch of Sprite, which would become one of its most successful brands

Pepsi merged with Frito Lay in the mid-60s to create PepsiCo, setting the stage for the war today. Diet drinks popped up too, creating a whole new soda segment

Here are their stock values over the years. Pepsi's successful foray into the snack food biz with Frito Lay have helped it significantly, especially in the past decade. Meanwhile, Coke has stayed strictly in beverages

Here are some of Coke's biggest brands -- 15 of them have reached $1 billion or more in retail sales

Though Pepsi's beverage brands may not be as strong, its snack food business is enormous

Coke has a big lead in cola market share over Pepsi, but Pepsi's multiple business lines haul in more cash

Each brand has had a brigade of celebrities on their side. Here are some famous faces that endorsed Coke:

Both brands have made tons of changes to their logos throughout their histories. Neither look anything like they did originally

They've both embraced the digital world as social media gets bigger and bigger -- but Coke seems to be faring better thus far

Coke and Pepsi aren't the only brands that have gone at it for decades...

Check Out The 12 Most Intense Marketing Wars Ever >

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How the ‘Blood Feud’ Between Coke and Pepsi Escalated During the 1980s Cola Wars

By: Becky Little

Updated: September 19, 2023 | Original: June 11, 2019

The great Cola Wars of the 1980s were a battle between Coca-Cola and PepsiCo for dominance. The disastrous introduction of “New Coke” in 1985 appeared to set Coca-Cola back. Yet by the end of the year, it was clear the “mistake” had actually helped Coca-Cola’s sales, allowing Coke to retain its spot as the largest-selling soda over Pepsi.

The two companies were both well-established by the time the Cola Wars broke out. Coca-Cola dated back to 1886 when a pharmacist in Columbus, Georgia invented the drink and began selling it to soda fountains. Six years later, the Coca-Cola Company was founded by an Atlanta pharmacist who’d secured the recipe (which contained small amounts of cocaine until 1929). Up in North Carolina , another pharmacist invented his own sugar drink in 1893. After seeing the success of Coca-Cola, he changed his soda’s name from “Brad’s Drink” to “Pepsi-Cola” in 1898 and founded the Pepsi-Cola Company in 1902.

Did you know? John Pemberton, the inventor of Coca-Cola, was addicted to morphine and used coca leaf as a 'safer alternative.' In the 1860s, '70s, and '80s, cocaine was widely endorsed as a cure-all. 

Over the next several decades, Coke emerged as the more popular soda. Starting in 1931, its famous Santa Claus ads marketed it as a refreshing drink you could enjoy year-round. Meanwhile, the Pepsi-Cola Company struggled financially and went through several reorganizations. (In 1965, it merged with Frito-Lay, Inc. to become PepsiCo, Inc. ) But in 1975, Pepsi started a marketing campaign that gave Coke a run for its money: the “Pepsi Challenge,” a blind taste test showing more people preferred Pepsi over Coke.

“The Pepsi Challenge was not just a marketing gimmick—it was true,” says David Greising , author of I'd Like the World to Buy a Coke: The Life and Leadership of Roberto Goizueta , Coca-Cola's CEO. Internal studies at Coca-Cola “confirmed what the Pepsi Challenge was showing, which is that if you just look at the taste of the beverage, consumers preferred Pepsi,” which had a “sweeter, more syrupy flavor.”

Coke was still outselling Pepsi, but its market share was declining as Pepsi’s was rising. “Part of the problem with the success of the Pepsi Challenge was that Coke had fallen into a malaise as a brand,” he says. “People were in love with the notion of Coca-Cola, but they weren’t necessarily drinking Coca-Cola.” 

In response, Coca-Cola started doing a few things differently. In 1982, it released its first drink to share Coke’s name: Diet Coke. The next year, it released caffeine-free versions of Coke and Diet Coke. CEO Roberto Goizueta also got the company to use corn syrup instead of sugar to reduce the cost of production.

That switch to corn syrup opened the door for bigger changes to the original Coke’s recipe. On April 23, 1985, Coca-Cola announced it was changing the secret formula for the flagship drink. The “New Coke,” as it became known, would have a sweeter taste, more similar to the Pepsi that consumers favored in blind taste tests.

Did you know? Coca-Cola went to space aboard the Space Shuttle Challenger in 1985. It was able to make the journey in an experimental 'space can,' which astronauts tested out.

Yet instead of being thrilled, people were outraged that they couldn’t buy the original Coke anymore. And Pepsi happily capitalized on the backlash. In one Pepsi commercial , a young girl upset about New Coke takes shots at the company’s integrity—“First they said they were ‘The Real Thing,’ then they said they were ‘It’ ”—then tries her “first Pepsi” and declares she now knows why Coke changed. A voiceover declares that Pepsi is “The Choice of a New Generation.”

Yet former Coke fans didn’t just abandon the drink for Pepsi like the girl in the commercial. Instead, they organized. Grassroots organizations like “Old Cola Drinkers of America” sprung up around the country to petition the company to change the recipe back. On July 11, 1985—less than three months after Coca-Cola announced the formula change—the company announced it would bring back the old formula under the brand name “Coca-Cola Classic.”

Meanwhile, the company continued to sell New Coke as regular “Coca-Cola.” Despite the negative public reaction, some people at the company still thought New Coke would eventually overtake Coca-Cola Classic, which the company could then retire.

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“Obviously that never did happen, because of the way that New Coke’s image was tainted out of the gate,” Greising says. “They were never able to convince consumers of what was evident in the taste tests, which was that they preferred New Coke.” The company rebranded the new drink as “Coke II” in 1992, but it never took off and Coca-Cola discontinued it in 2002.

Overall, the New Coke debacle was a financial success for Coca-Cola. “People all of a sudden wanted to actually taste the beverage again, and not just kind of feel good about it,” Greising says. Coca-Cola continued to top Pepsi’s yearly sales going forward. In 2010, for the first time, both Coke and Diet Coke surpassed Pepsi’s sales, leading the Wall Street Journal to run a headline declaring Diet Coke the winner in the Cola Wars. But one could also argue the wars never ended.

“This is a blood feud between the two companies, the likes of which we have rarely seen in the history of business,” Greising says. “The high point of the Cola Wars in some ways was the 1980s, but the Cola Wars have continued and are still being fought today.”

Just look at the current marketing. In 2019, Coca-Cola brought back New Coke for a limited time.

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Coca-Cola vs. Pepsi-Cola and the Soft Drink Industry

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The Coca-Cola Wars: Can Anybody Really Tell the Difference?

While few people can reliably discern any difference in a blind taste test, Coca-Cola is winning in its branding war with Pepsi.

It was reported this week that Coca-Cola is rolling out a new unified design across its different brands (Classic, Diet, Zero and Life). The idea is to have essentially the same design across the entire range, with the different cans varying only in colour. Spain is going a step further: all four varieties will use the classic red can, with only the colour under the swoosh varying. Throw in the three Pepsi brands (Pepsi, Diet and Max), and the cola drinker now has no less than seven different options; many more if you include the smaller brands and supermarket generics. But can anyone taste the difference between these brands anyway?

Perhaps surprisingly, this question has attracted quite a lot of interest in the scientific literature. Indeed, as far back as 1949, researchers at the University of Wichita presented “ A Progress report on some experiments with cola beverages .” In the first part of the study, participants were given Coca-Cola, Pepsi, or RC Cola. When asked to guess which was which, participants’ guesses (41% correct for Coca-Cola, 38% for Pepsi and 35% for RC) were not significantly more accurate than chance (the only reason they look a bit better for Coca-Cola is that they are more likely to guess this more famous brand, regardless of the drink being presented). Indeed, in the second part of the study, when participants were—unbeknown to them—given the same cola in all three glasses, an almost identical pattern was observed, with 45%, 32% and 25% correct guesses for Coca-Cola, Pepsi, and RC respectively.

A similar study from 1983 (not currently on JSTOR, but you can read the abstract here ) found that participants couldn’t tell when they were given Coca-Cola in a Pepsi bottle or vice versa. Interestingly, though, when surreptitiously given two cups of the same drink—one cup marked with the letter “L”, the other with the letter “S”—participants overwhelmingly preferred the latter. Why? In a different part of the study, participants indictated that they simply preferred the letter “S” (6.8/10 on a likeability scale) to the letter “L” (6/10), presumably because the former is more frequent , and people tend to like what they know . Whatever the explanation, this preference for “S” cola over an identical “L” cola is a particularly powerful demonstration—as if one were needed—that, in the cola wars, branding is everything.

Brands in general—and perhaps cola brands in particular—derive much of their power from the fact that they come to symbolize human values that we aspire too. For example, an Australian study found that participants strongly associated Pepsi—but not a supermarket generic, Woolworth Homebrand—with “enjoying life” and “an exciting life.” Consequently, participants who described themselves as valuing excitement rated (what they believed to be) Pepsi as tasting better than (what they believed to be) Woolworth Homebrand. People who placed a low value on excitement showed no such difference. The power of branding was also highlighted in a 2004 brain scanning study . When the drinks were given blind, participants gave similar responses to Pepsi and Coca-Cola. However, when the drinks were labeled, participants displayed a preference for Coca-Cola; a preference reflected by stronger activity in an area of the brain strongly associated with reward (the ventro medial prefrontal cortex).

This study suggests that, while few people can reliably discern any difference in a blind taste test, Coca-Cola is winning in its branding war with Pepsi. Presumably, then, what Coca-Cola is doing by making its different brands more similar in appearance is trying to ensure that the iconic branding of its flagship product transfers, in undiluted form, to its Diet, Zero, and Life versions.

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Coca Cola vs Pepsi: The Battle of the Beverage Giants

The rivalry between Coca-Cola and Pepsi is one of the most iconic in the business world. The two companies have been battling for dominance in the soft drink industry for over a century, and their competition has led to some of the most memorable marketing campaigns in history. From the Pepsi Challenge to the Coca-Cola polar bears, these two brands have become ingrained in popular culture.

Despite their similarities, there are significant differences between the two companies. Coca-Cola is known for its classic, timeless branding, while Pepsi has always been more willing to experiment with new flavors and marketing strategies. Coca-Cola has a larger global market share, while Pepsi has a stronger presence in certain regions, such as India and Mexico. Both companies have faced their fair share of challenges over the years, from changing consumer tastes to health concerns about sugary beverages.

Overall, the Coca-Cola vs. Pepsi rivalry is a fascinating case study in business strategy, marketing, and branding. Despite the intense competition between the two companies, they have both managed to thrive and remain relevant in an ever-changing industry. As consumers continue to demand more variety and healthier options, it will be interesting to see how these two giants adapt and evolve to stay ahead of the curve.

History of Coca Cola and Pepsi

Coca cola's history.

Coca Cola is a carbonated soft drink that was created in 1886 by a pharmacist named John Pemberton in Atlanta, Georgia. It was initially marketed as a medicine that could cure headaches and fatigue. The drink's name comes from two of its key ingredients: coca leaves and kola nuts.

By the early 1900s, Coca Cola became a popular beverage across the United States. The company began to expand internationally, and by the 1920s, Coca Cola was sold in over 20 countries. During World War II, Coca Cola was even included in American soldiers' rations.

In the 1980s, Coca Cola faced stiff competition from Pepsi, which was gaining market share. In response, Coca Cola introduced "New Coke" in 1985, which was a sweeter version of the original formula. However, this change was met with widespread backlash, and Coca Cola was forced to bring back the original formula as "Coca Cola Classic."

Pepsi's History

Pepsi was created in 1898 by a pharmacist named Caleb Bradham in New Bern, North Carolina. The drink was originally called "Brad's Drink" and was marketed as a digestive aid. In 1902, Bradham changed the name to Pepsi Cola, and the company became known as PepsiCo in 1965.

In the 1930s, Pepsi began to compete with Coca Cola by emphasizing its lower price point. During World War II, Pepsi became the preferred beverage of American soldiers due to its lower cost and availability.

In the 1980s, Pepsi gained market share by focusing on a younger demographic and using celebrity endorsements in its advertising campaigns. The "Pepsi Challenge" campaign, which involved blind taste tests between Pepsi and Coca Cola, was particularly successful.

Today, Coca Cola and Pepsi remain two of the most popular soft drink brands in the world. While Coca Cola still holds a larger market share, Pepsi continues to innovate and compete with new products and marketing strategies.

Differences between Coca Cola and Pepsi

Coca Cola and Pepsi are two of the most popular soft drinks in the world. While they are very similar in many ways, there are some key differences between the two. In this section, we will explore some of the differences between Coca Cola and Pepsi.

Taste Differences

One of the most notable differences between Coca Cola and Pepsi is their taste. While both are cola-flavored soft drinks, they have slightly different taste profiles. Coca Cola is often described as having a smoother, more caramel-like flavor, while Pepsi has a slightly sweeter, citrusy taste.

Another difference between the two is the level of sweetness. Pepsi is generally considered to be sweeter than Coca Cola. This is due to the fact that Pepsi contains more sugar than Coca Cola. In fact, a 12 ounce can of Pepsi contains two more grams of sugar than a 12 ounce can of Coca Cola.

Marketing Differences

Coca Cola and Pepsi also have different marketing strategies. Coca Cola is known for its iconic branding and advertising campaigns. The company has a strong focus on emotional marketing, using slogans like "Taste the Feeling" to connect with consumers on a personal level.

On the other hand, Pepsi has a more youthful and energetic image. The company's marketing campaigns often feature celebrities and pop culture references. Pepsi also has a history of using controversial advertising, such as the infamous Pepsi commercial featuring Kendall Jenner.

Sugar Differences

Another key difference between Coca Cola and Pepsi is the type of sugar used in each drink. Coca Cola uses high fructose corn syrup, while Pepsi uses sugar. This difference in sweeteners can impact the taste of each drink.

While Coca Cola has faced criticism for its use of high fructose corn syrup, Pepsi has been praised for its use of sugar. Some consumers prefer the taste of sugar-sweetened drinks and believe that they are healthier than those sweetened with high fructose corn syrup.

In conclusion, while Coca Cola and Pepsi are very similar in many ways, there are some key differences between the two. From taste to marketing to sweeteners, these differences can impact the way consumers perceive and enjoy each drink.

Nutritional Information

Coca-Cola and Pepsi are two of the most popular soda brands in the world. However, they are also known for their high sugar and calorie content. In this section, we will discuss the nutritional information of these two drinks.

Sugar Content

Sugar is one of the main ingredients in soda, and both Coca-Cola and Pepsi contain a significant amount of it. A 12-ounce can of Coca-Cola contains 39 grams of sugar, while a 12-ounce can of Pepsi contains 41 grams of sugar. This means that a can of Pepsi has slightly more sugar than a can of Coca-Cola.

To put this into perspective, the American Heart Association recommends that men should consume no more than 36 grams of added sugar per day, and women should consume no more than 25 grams of added sugar per day. Therefore, drinking a can of Pepsi or Coca-Cola can easily exceed the recommended daily sugar intake.

Calorie Content

In addition to sugar, soda also contains a high amount of calories. A 12-ounce can of Coca-Cola contains 140 calories, while a 12-ounce can of Pepsi contains 150 calories. Both drinks are high in calories, and consuming them regularly can lead to weight gain and other health problems.

To reduce the calorie content of these drinks, both Coca-Cola and Pepsi offer diet versions with zero or low-calorie options. However, these drinks may contain artificial sweeteners, which have their own set of health concerns.

Overall, it is important to be mindful of the sugar and calorie content of these drinks and consume them in moderation.

Global Reach and Popularity

Coca-Cola and Pepsi are two of the world's most recognizable brands, with a global reach that spans across continents. They are both leaders in the beverage industry, offering consumers hundreds of beverage brands. In addition, both companies offer ancillary products such as consumer goods and snacks.

Sales and Distribution

Coca-Cola and Pepsi have a global presence, with distribution networks that span across 200+ countries. Coca-Cola's global sales volume in 2020 was 29 billion unit cases, while PepsiCo sold 4.5 billion unit cases of beverages in the same year.

Coca-Cola has a larger global market share than PepsiCo, with a brand value of over $89 billion, compared to PepsiCo's brand value of $18.4 billion. Despite a decline in brand value, Coca-Cola remains the world's most valued soft drink brand, according to Brand Finance.

Brand Recognition

Coca-Cola and Pepsi are household names and have achieved global recognition due to their extensive marketing campaigns. Coca-Cola's "Share a Coke" campaign, which personalized their bottles with individual names, was a huge success. Pepsi's "Pepsi Challenge" campaign, which compared Pepsi to Coca-Cola in blind taste tests, was also successful.

Both brands have also been associated with popular culture, with Coca-Cola sponsoring the Olympics and Pepsi sponsoring the Super Bowl. These sponsorships have helped to increase brand recognition and awareness.

In terms of social media, Coca-Cola has a larger following on Facebook, Twitter, and Instagram than Pepsi. Coca-Cola's social media presence has been successful due to its ability to connect with consumers through storytelling and emotional advertising.

Overall, Coca-Cola and Pepsi's global reach and popularity have been achieved through their extensive sales and distribution networks, successful marketing campaigns, and association with popular culture.

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Cola Wars: Coca-Cola vs. PepsiCo A CASE STUDY

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Jorge Yeshayahu Gonzales-Lara

The Coca-Cola Company is a total beverage company, offering over 500 brands in more than 200 countries and territories. Headquartered in Atlanta, Georgia, Coca-Cola is the world’s largest provider of carbonated soft drinks, with an over 50% market share worldwide. Through the world’s largest beverage distribution system, consumers enjoy the Coca-Cola company’s beverage at a rate of 1.7 billion servings a day - about 19,400 beverages every second. This research investigates Coca-Cola’s preeminent position in the soft drink sector, and why it enjoys it. We explore the external and internal factors which share the company and its direction, and how Coca-Cola has responded to its influences. Additionally, an overview of the company’s strategic efforts shall be undertaken, and some cautionary notes for the future will be sounded.

Mojtaba Saeidinia

This study tried to identify the impact of Operation strategies for Coca-Cola Vs Pepsi companies to attract their Customers. Nowadays, economies are becoming more entwined than ever, any possible method that can be used in supporting the building of global brands is appealing. The characterization of the soft-drink industry for decades has intense rivalry between Coca-Cola and Pepsi. Coca-Cola Company ruled the soft-drink market all through the 1950s, 1960s, and early 1970s in this chess game of big firms. Not only can it be difficult to understand consumer behaviour and target groups’ needs on the domestic market, but also for multi-national companies, this is an even greater struggle. Despite the fact that most of the world’s consumers have certain things in common, their values and attitudes, as well as behaviour are often different. Moreover, the study encompasses three specific target groups in Sweden that have been divided in accordance to age, and thus we do not look at the entire consumer population and as a result, generalization is not obtained. Finally, we have concentrated on age segmentation, and thus other demographic variables are not observed.

Jawite William

The purpose of this research was to analysis the efficiency of global strategies. This paper identified six key strategies necessary for firms to be successful when expanding globally. These strategies include differentiation, marketing, distribution, collaborative strategies, labor and management strategies, and diversification. Within this analysis, we chose to focus on the Coca-Cola Company because they have proven successful in their international operations and are one of the most recognized brands in the world. We performed an in-depth review of how effectively or ineffectively Coca-Cola has used each of the six strategies. The paper focused on Coca-Cola's operations in the United States, China, Belarus, Peru, and Morocco. The author used electronic journals from the various countries to determine how effective Coca-Cola was in these countries. The paper revealed that Coca-Cola was very successful in implementing strategies regardless of the country. However, the author learned that Coca-Cola did not effectively utilize all of the strategies in each country.

Andrew Bertsch

The year 2015 marks the 30 th anniversary of the introduction of New Coke by The Coca-Cola Company, a product that quickly vanished following a firestorm of consumer complaints. How is it that customers turned their back on the cola giant? The effects of The Coca-Cola Company's decision to introduce New Coke to replace original Coke in 1985 can be attributed to three areas: it was a replacement beverage, the organization misapplied focus group data, and leadership experienced tunnel vision, ignoring warning signs of trouble. The organization relied on certain models to guide their decision-making in each area, however when combined, New Coke ultimately failed. Although their decision did not have the desired outcome, The Coca-Cola Company can offer modern organizations lessons in avoiding the problems they faced in their decision-making process surrounding New Coke.

Tutors India

Global marketing and internalisation of products could be a challenging task for an organisation since various dierences are predominant in dierent countries which are attributed to the cultural, political and economic stances of the country. In addition, there are regulations and domestic laws pertaining to the specic country for which a product or brand needs to be familiarised. Though serious challenges may pose probabilities of failure, when properly marketed and administered in a new market, numerous benets and opportunities could be witnessed (Wintranslation, 2016). One among the key challenges faced by authorities in an organisation in the context of marketing products or services overseas is the act of either standardise the product/ service or adapt to the situations of the new market (Loukakou & Membe, 2012). These inferences become the essence of the present essay in analysing the market strategies of a specic company (‘Coca-Cola’) in UAE. Special emphasis will be laid upon analysing the operations of the organisation in the selected geographical location; the mission, vision and objectives of the selected organisation; the social responsibility and marketing ethical issues of the company in the selected country; the key competitors and the critical factors of the selected organisation towards success.

kaushal gupta

This study is conducted between two global giants Coca Cola & Pepsi-cola. This research paper is basically a comparative study of two well known competitors in beverage industry of Pakistan which are Pepsi Cola & Coca Cola. The primary purpose of this paper is to find out which company is leading the market. This research required us to conduct the consumer research on why they chose the drink. To find out the factors & reasons that influence to choose their preferred drink. Abstract-This study is conducted between two global giants Coca Cola & Pepsi-cola. This research paper is basically a comparative study of two well known competitors in beverage industry of Pakistan which are Pepsi Cola & Coca Cola. The primary purpose of this paper is to find out which company is leading the market. This research required us to conduct the consumer research on why they chose the drink. To find out the factors & reasons that influence to choose their preferred drink.

Historia y Sociedad

| The Coca-Cola Company sold drink concentrates and licensed rights to its trade-marked brands to contracted bottlers who produced and sold bottled drinks in designated geographic areas around the world, including Colombia, beginning in 1927. The franchise system enabled international expansion without large corporate growth or direct local employment allowing the company to externalize liability and financial risk. The franchise system helped the company situate the production of Coca-Cola within local economies, conscripting local elites and workers into its industry, and negotiating its representational forms to fit local contexts. The Coca-Cola Company thus benefited from the economic and political power of both the U.S. and the Colombian elite as it established its business in the country beginning in 1927. Examining print advertising from the 1920s and 1940s, the papers of Coca-Cola executives , and publications of the U.S. multinational and its Colombian franchise bottler, this article argues that The Coca-Cola Company tenuously constructed its industry, products, and brands as simultaneously global and local. While localizing the Coca-Cola industry, products, and brand, the company alluded to its modernity and global popularity, available for purchase by enterprising merchants and thirsty consumers in Colombia.

Prof. Demetris Vrontis

Mark Newman

Communication Research

Ted Friedman

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A Strategic Case Study on PepsiCo

30 Pages Posted: 27 Apr 2021

Assan Jallow

College of Business and Economics, University of Wisconsin - Whitewater

Date Written: April 17, 2021

The purpose of this paper is to provide a strategic report analysis and evaluation of PepsiCo in the beverage industry. This includes the methods of analysis of PepsiCo’s external and internal analysis, its marketing strategies, and SWOT analysis from the perspectives of value-chain, resource-based, and 3-circa analysis. The research draws attention to details on the competition of PepsiCo as a strategic competitor against Coca-Cola in the beverage-cum-snacks industry. Despite being a competitive brand that is being overshadowed by Coca-Cola regarding global marketing shares and growth, Pepsi has become one of the world’s largest selling soft drinks across national boundaries as it is liked and being patronized by people of all ages, across the globe. Dozens of resources were cited to produce this strategic report. In sum, the paper analyses PepsiCo’s strategic competitiveness against its rival – Coca-Cola in the beverage and smacks industry. The paper concludes with a summary of recommendations for consideration by PepsiCo’s corporate and business level decision-makers on how well PepsiCo should manage its strategic intent of its marketing and product diversification programs across the boundaries of the global market to reposition itself as a global giant beverage and snack business player.

Keywords: PepsiCo, SWOT analysis, External and Internal Analysis, Competitive advantage and analysis

Suggested Citation: Suggested Citation

Assan Jallow (Contact Author)

College of business and economics, university of wisconsin - whitewater ( email ).

Whitewater, WI 53190 United States 6084179508 (Phone) 53704 (Fax)

HOME PAGE: http://https://www.uww.edu

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How Coke and Pepsi's rivalry shaped marketing — and where it goes next

As the most enduring consumer brand rivalry enters a new phase in the metaverse, tall orders around sustainability may demand cooperation over competition.

Photo Illustration: Shaun Lucas/Industry Dive; Getty Images 

This article is part of a four-part series about famous brand rivalries.

Competition between brands is natural, but few rivalries are as ingrained in culture as the long-standing battle between Coca-Cola and Pepsi. Even people who have sworn off soda may hold an opinion on which label they align with. “Are you Coke or Pepsi?” is a question that frequently appears on personality quizzes , underpinning the significance ascribed to beverages that, in form and function, are largely similar. 

With a relationship that predates the 20th century, Coke and Pepsi have played a pivotal role in shaping the contours of modern advertising, helping define what it means to be a brand. Similarly, Coke and Pepsi’s marketing spats have often mirrored broader social change and disruption, reflecting the cutthroat tactics of early packaged goods industrial expansion, the counterculture of the ‘60s and ‘70s, and in today’s world, the concept of brand purpose, where a company pursues a deeper set of values than peddling goods. 

“As two of the prime consumer products in modern civilization, Coke and Pepsi have come to epitomize perhaps the central feature of all advertising, which is to provide the forum for placing social values and attitudes on a plane with material ones — be they goods, services, or money,” J.C. Louis and Harvey Yazijian write in their 1980 book “The Cola Wars,” an in-depth account of the formation of the two soft drink empires and some of their most iconic battlegrounds. 

Head-to-head

The ad landscape looks markedly different now than it did in the “Mad Men” heyday or the outsized aesthetics of the ‘80s. Today’s consumers have made it clear they don’t much like advertising , while flocking to channels where brand messages are easier to avoid. It’s hard to put on a compelling duel in the marketing arena if the stands are empty.  

Public frustrations extend to more substantive business practices as well. As much as marketers were pressured for their role in the littering crisis decades ago, they now must contend with questions around sustainability, an area where food and beverage firms produce a massive amount of waste. An antagonistic rivalry might not be conducive to devising planet-saving solutions on this front, and even more lighthearted sparring — enabled by social media — carries a potentially unwanted edge in an increasingly divided society.

For Coke and Pepsi, the future could require a mindset that’s more hand-in-hand than head-to-head. That’s a difficult needle to thread as the war for consumer attention continues to evolve, jumping to nascent channels like gaming and the metaverse where brands are enacting another land grab.

“If you're going to be competitive, if you're going to be comparative, if you're going to be head-on, there's a lot at risk,” Susan Fournier, dean of the Questrom School of Business at Boston University, said of the Coke-Pepsi rivalry. 

“We're in a little bit of a pot-shotty, combative world,” Fournier said. “At some level, they're playing back some kind of a zeitgeist again, but then it's a matter of: Is that a zeitgeist I want?” 

Getting to the roots

Coke and PepsiCo, Pepsi’s parent company, may be two multinational corporations whose reach and extensive product portfolios can make the mind reel , but their story is also one with a clear underdog. The disparities have stretched far back: Coke’s estimated marketing budget in 1939 soared into the millions, according to “The Cola Wars,” while Pepsi’s sat around $600,000. A follower status can have certain benefits, however, and Pepsi occasionally bills itself as a “disruptor” brand to this day. 

“Pepsi has traditionally been the challenger in the relationship. Their ability to own this and flip it to their advantage leads to memorable breakthrough work,” Ben Phillips, group strategy director at the agency Mekanism, said in an email. Phillips praised a “More than OK” ad from 2019 that playfully riffed on a common question that servers ask diners who request Coke but are stuck with the alternative.  

Coke, which was first sold in 1886, has rarely gone on the defensive, mostly because it locked in a leadership status early. Initial iconic advertising embodied classical Americana, with taglines like Archie Lee’s “The Pause that Refreshes” from the 1930s capturing the clean-cut, wholesome style popularized by artists like Norman Rockwell (Rockwell designed several ads for the brand ). That positioning proved vital for Coke during World War II, when soldiers fighting abroad coveted the drink as a reminder of home and embodiment of what they were fighting for. 

Pepsi, originally marketed as Brad’s Drink in 1893, was scrappier, more centered on value. It was also arguably more innovative on the marketing front. The soft drink marketer in the late ‘30s introduced a radio jingle harping on how consumers got more beverage volume for a cheaper price — which was true at the time — revolutionizing radio advertising in “one fell swoop,” per “The Cola Wars.” The earworm became a bona fide hit, broadcast from hundreds of radio stations and even the World Series. 

"Good advertising in this rivalry is like bringing your sharpest knife to a gunfight."

Ben Phillips

Group strategy director, Mekanism

While radio ads and jingles are no longer a game-changer in marketing, this strategy laid the groundwork for Pepsi’s identity in important ways that reverberate today, especially through the close association with music. The company for the past decade has sponsored the Super Bowl halftime show as part of an NFL deal reportedly valued at over $2 billion . The stage has captured the attention of tens of millions of viewers during TV’s most-watched event for years, shoring up Pepsi’s reputation for showmanship. 

While the NFL deal is set to expire in 2022, Pepsi could still renew the agreement , as reported in CNBC. Even if it doesn’t, the brand left things off on a strong note, drawing raves for a Super Bowl LVI showcase that brought together Eminem, Snoop Dogg, Dr. Dre, Kendrick Lamar, Mary J. Blige and 50 Cent. 

“Good advertising in this rivalry is like bringing your sharpest knife to a gunfight,” Phillips said.

“Pepsi [does] advertising, yes, but over the last few years they’ve dropped bombs in pop culture in ways that Coke [hasn’t],” he added. “I can’t think of a more memorable ‘brand activation’ than the Super Bowl halftime show this year.” 

Culture wars on the soda stage

Of course, a rivalry doesn’t amount to much if it’s purely one-sided. Pepsi for years fought tooth and nail to carve out an edge against Coke. Coke resisted responding directly — doing so would admit Pepsi was a legitimate threat — though its awareness of the competition behind the scenes slowly grew. The marketer began inscribing the word Coke on its bottles in 1941, according to “The Cola Wars,” a sign of greater guardedness over its image after trademark disputes.

With the advent of TV advertising, and then the burgeoning counterculture of the ‘60s, Pepsi sharpened its attacks, with shots across the bow at Coke’s fustier image. In 1963, Pepsi announced it would put $36 million behind a new “Think Young” brand platform, its most extensive campaign to date, per “The Cola Wars.” A year into its run, the effort introduced the “Pepsi Generation” concept targeting pre-Vietnam youth, a landmark creative play that “was particularly useful in upgrading its image as a second-class product stemming from its nickel-value days,” Louis and Yazijian wrote. 

Pepsi on the silver screen

Coke and Pepsi’s fight to win over the rebellious youth of the ‘60s and ‘70s took some interesting routes. Pepsi helped sponsor the 1964 film “For Those Who Think Young,” which mirrored the brand’s slogan at the time, “Now, it’s Pepsi for those who think young.”

Hollywood ambitions echo into the modern day. Pepsi in 2018 released a feature film based on its Uncle Drew character, an old-timer who’s surprisingly skilled on the basketball court and is played by NBA star Kyrie Irving in heavy makeup.

The movie made over $15 million during its opening weekend at the box office.

Coke and agency partner McCann Erickson in 1971 devised their own angle to appeal to a younger, more global consumer base. The result is considered one of the greatest commercial advertisements of all time. Known as “Hilltop,” the spot depicts a group from diverse backgrounds gathering on a hill, Coke bottles in hand, and joining in on a song about wanting to “buy the world a Coke.”      

“It was like the culture war playing out on a soda stage,” Fournier said. “That's really where it cements as not just the choice about taste.”

Infamous debacles

Pepsi’s success aligning itself with youth culture endures, but has occasionally become a liability. With the stronger emphasis on brand purpose that started taking hold in the 2010s, marketers have chimed in on thornier discussion points in politics and social issues. Pepsi in 2017 ran a spot that showed Kendall Jenner, of Kardashian family fame, quelling rising tensions between a gathering of police and protestors by passing along a can of Pepsi — an obvious bid to tap into discussions around Black Lives Matter. 

The work was a disaster, widely decried as tone-deaf, and turned into a target of mockery on platforms like Twitter. It plunged perceptions of the brand to a 10-year low and was pulled from air within a day. The ad arguably looks even more poorly conceived in the wake of mass protests over police brutality in 2020 and serves as a case study of how social media can amplify marketer missteps and humble companies that once won favor using now-dated tactics.  

And while taste isn’t everything, it would ultimately enshrine Coke and Pepsi’s rivalry in marketing. Pepsi’s rising confidence went a step further with the rollout of the “Pepsi Challenge” in 1975. The idea was both simple and ingenious: The brand set up blind taste tests where the majority of consumers participating said they preferred the taste of Pepsi to Coke. 

The upstart soda marketer suddenly had fodder that would fuel its marketing strategy for years. Pepsi finally topped Coke in corporate sales in 1979, though Coke had much stronger profits, according to “The Cola Wars.” Regardless, there was a sense of a leveling playing field that would throw Coke into a panic.  

“The big blunder, strategically, was that Coke bought Pepsi's story that the battle was about taste, which it wasn't,” said Priya Raghubir, a professor of marketing at New York University’s Stern School of Business. “They forgot their strength and they played on Pepsi's battlefield.”

Coke, unaccustomed to adopting a reactionary stance, didn’t impress with its responses to the “Pepsi Challenge.” One ad stated that a third of consumers prefer Fresca — a Coke-owned brand — to Pepsi, a statement acknowledging that two-thirds of people still enjoyed Pepsi, per “The Cola Wars.”   

Sweatiness over the “Pepsi Challenge” served as a precursor to the most egregious product miscalculation in Coke’s history. After seeing its share of the market slip, the company in 1985 decided to reformulate its beverage. The refreshed product, informed by extensive market research and positioned as an intelligent risk by then-CEO Roberto Goizueta, was dubbed “New Coke.” 

The mind behind New Coke

Roberto Goizueta, CEO of Coca-Cola and the mastermind of New Coke, insisted there were no sacred cows at the company. His background as a chemist and R&D leader helps explain how he miscalculated the stock people put in the brand as it existed beyond the flavor profile.

However, New Coke did little long-term damage to Coke's bottom line and Goizueta remained at his post until his death in 1997. The business school at Emory University has born his name since 1994. 

New Coke ultimately didn’t appear to bring some needed scrutiny to the market research-driven approach that informed its creation in the first place.

“I don't think market research has really learned the lesson that Coke's market-research debacle should have taught them,” said Priya Raghubir of New York University’s Stern School of Business.

It did not go over well. According to Coke’s own account , a consumer help hotline went from receiving 400 calls a day to 1,500, the lion’s share complaining about New Coke. The original Coke, or Classic Coke, returned to shelves just a few months later. 

Coke had learned the hard way that people bought its product not just for the taste, but also for the associations the soda carried. In this way, the company came to understand that “brand” was a distinct concept from raw product, though this would hardly be the last time Coke toyed with its flavor profiles. New Coke remains a touchstone for how not to reformulate a product. 

“When people are called loyalists, they're loyal to the brand, even though they may not be able to differentiate between the tastes of brands,” Raghubir said. 

Modern battlegrounds

Many of Coke and Pepsi’s marketing mandates are the same in 2022 as at the height of the Cola Wars, particularly in the chase to win over the next generation of consumers. This has always been a challenging prospect but carries additional complexities today. 

More people have gravitated away from sugary beverages amid concerns for linkages to obesity and other health problems. Staple media formats that were once guaranteed to reach millions of eyeballs like TV commercials are less of a sure bet, while advances in digital technology have put a focus on personalization and measurement that is difficult to realize.  

The dual forces of quickly shifting consumer tastes and media consumption habits — both amplified by the pandemic — have led to bolder experiments. Both companies entered the health crisis in 2020 on uncertain footing, with the mass closure of on-premise venues like movie theaters upending their business. But COVID-19 led to a larger reckoning with product portfolios, such as Coke’s move to cull “zombie” brands and recenter around its core beverage offerings. Streamlining has paid off: Coke posted a blowout first quarter in 2022 despite price hikes tied to inflation, while Pepsi similarly beat Wall Street’s estimates . 

Continued marketing innovation could help sustain momentum moving forward. Coke in March signed on as a founding partner of Wild Rift Esports , a major bet on the sponsorship potential of professional mobile gaming. Gaming has factored more heavily into marketing initiatives like a global “Real Magic” brand platform the company implemented last year.

An eye on nascent digital channels ladders down to product development as well. Coke earlier this year launched a Creations platform that will see the company introduce limited-edition sodas that embody a concept rather than a traditional flavor. A recent offering was meant to taste like computer pixels , a nod to growing traction for the metaverse, and was promoted in the online game Fortnite — a favorite among Gen Z. 

Pepsi is vying for a big hit of its own with the nitrogen-infused Nitro Pepsi, which the company bills as the biggest innovation in the soda category in years. A campaign accompanying the national rollout in March stars the popular TikTok comedian Khaby Lame. Like Coke, Pepsi is trying to find its place in the metaverse through formats like non-fungible tokens (NFTs). Its first NFT drop in December referenced its founding year and rich history with music . 

“Both of these brands want to be ‘experience makers’ now,” Lucien Etori, vice president and executive strategy director at agency R/GA, said over email, adding that those strategies are playing out in mobile, and increasingly, unproven channels like gaming and the metaverse.

“This is significant because both of these brands are very much looking to establish their bona-fides with the digital natives,” Etori added.

Joining forces

Even as the competition remains fierce, Coke and Pepsi share common shortcomings that may be easier to address together. Both have been grilled for their contributions to plastic waste as sustainability becomes a more pressing consumer concern. A recent Coke PSA that emphasized the need to recycle, with Bill Nye as an animated spokesperson, sparked outcry from critics who noted Coke generates millions of metric tons of virgin plastic each year . 

Cross-industry solutions might be necessary if soft drink marketers want to hold onto public favor in the years ahead and prevent internecine squabbling that could eat into profits. Coke, PepsiCo and Keurig Dr Pepper in 2019 joined forces on an Every Bottle Back program that seeks to substantially reduce plastic waste in the U.S. Meeting those goals will require greater innovation and maybe a healthier form of rivalry than what’s manifested in the past.  

“[It’ll] be a race to see which of the two will be the industry flagship when it comes to driving growth with forbearance and with a conscience, who will push the boundaries of what’s possible when it comes to packaging innovation, who can offset the most carbon and who can give back to local communities in the most significant way,” Etori said. 

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Coca-Cola Vs. Pepsi: The Amazing Story of Brand Wars And Marketing Strategies

Kinnary Nensee

A relationship and a rivalry ingrained in the culture that predates the 20th century. Two companies that have played a pivotal role in shaping the contours of modern advertising.

J. C. Louis and Harvey Yazijian’s 1980 book titled ‘The Cola Wars’, perhaps, best describes it. “As two of the prime consumer products in modern civilization, Coke and Pepsi have come to epitomize perhaps the central feature of all advertising, which is to provide the forum for placing social values and attitudes on a plane with material ones — be they goods, services, or money”

Between the two historical giants exists legendary marketing tactics to outdo each other. One of the most famous ones was the 1975 Pepsi Challenge.

What was the Challenge The History of the two Titans Marketing Strategies Comparison Who is Better

What was the Challenge

The Year 1975

Coca-Cola had been holding the number one position in the market for decades. Their superior distribution system, effective marketing, and incredible brand loyalty created a legion of happy customers.

Pepsi was relatively new and looking to capture a sizeable market portion. They were driven, hungry, and willing to go that extra mile. A business savvy executive at the company designed a bold and revolutionary strategy and called it ‘The Pepsi Challenge'.

They walked inside the malls around the country and invited people for a blind taste test. One can contain Pepsi and the other Coca-Cola. The blind taste test resulted in the favor of Pepsi. They were jubilant about the win and conducted television campaigns showing people choosing Pepsi over Coca-Cola.

Pepsi had won the battle but the war was yet on. Coca-Cola had yet to respond.

After a few initial blunders like issuing press releases and questioning the results of the Pepsi campaign, Coca-Cola came up with a devious plan. Enacting the adage ‘If you can’t beat them, join ‘em’, they came up with New Coke that was similar in taste to Pepsi.

The plan worked like a charm. The ‘New Coke’ spurred debates as people wrote to the company to change it back to the classic Coca-Cola taste. Now people were again talking about Coca-Cola – New Coke vs. Coke Classic. And Pepsi was forgotten.

The Year 2003

This iconic battle was so baffling that a neuroscientist named Read Montague decided to resolve it through his own study.

He recreated the blind taste test with a few test subjects and monitored their brain activity. His research was in line with the original campaign – Pepsi was preferred. His finding was that the subjects responded strongly to Pepsi in the reward center of the brain.

Next, he tweaked the test the told his subjects exactly what drink they were consuming. This time the test results were in favor of Coca-Cola. He observed that brain activity changed. Memories and perceptions had taken over and sheer brand power overrode every other consideration. Coca-Cola has won again !!

The History of the two Titans

Both drinks were created in a pharmacy. Coca-Cola was the first to be created by Dr. John S. Pemberton in the early 1800s. A little over a decade later, Caleb Davis Bradham created the drink that would later be known as Pepsi-Cola. For more than a century and traveling different paths, both these companies have created a niche for themselves. Their marketing techniques have made it to the Advertisement Hall of Fame and the brands are identifiable by their logos worldwide.

Marketing Strategies Comparison

Coca-Cola was the first company to expand internationally in 1915 by opening a plant in the Philippines. By the 1920s Coca-Cola was establishing a presence in Europe and within a decade expanded its presence to Australia and South Africa.

Meanwhile, Pepsi had expanded its footprint in the country to 24 franchises by 1910. World War I and the resultant sugar crises almost forced Pepsi to go bankrupt in 1923. The company was sold about 5 years later and relocated to Virginia. In the early 1930s the company again faced bankruptcy but recovered and since then has been successfully growing.

Both companies have developed logos after a deep market study using colors that most resonated with consumers. Their advertisement campaigns have been on an equal footing, be it creating catchy jingles to audience-engaging television promotions. By the 1960s, both companies had a presence in more than 100 countries when Pepsi decided to tap the youth market by dubbing the brand as ‘those who think young’. Its youth-focused advertisements continue into the 21st century.

Both companies expanded their product range in the 1960s. Coca-Cola purchased the Minute Maid Corporation and launched its most successful product Sprite. Pepsi, at the same time, gave its health-conscious customers a sugar-free option called Diet Pepsi. They also acquired the distribution rights of 7-up, Sprite’s main competitor, in the 1980s. As time went on, both companies expanded their product ranges and are on an equal footing.

With time and technological advances, this clash of the titans has also evolved. Both companies used celebrities for endorsements which lasted for about 2 decades. When social media marketing evolved, both companies became active online continuing their war.

Over the years both companies have sponsored a slew of major sporting events. Coca-Cola has been associated with the Olympics since 1928 while Pepsi has a long-term deal with NFL.

Who is Better

Every year, with all the highs and lows, they win some and lose some. However, there is no clear demarcation about who is better. Both conglomerates are head-to-head. However, for both brands, the future is more about hand-in-hand as the market and consumers evolve.

What marketing strategy does Pepsi use?

Pepsi's marketing strategy utilizes celebrity endorsements and company sponsorships to promote its product.

What marketing strategies did Coca-Cola use?

Coca Cola actively uses social media and online communication channels for business promotion.

What makes Coca-Cola more successful than Pepsi?

Coca-Cola has a much stronger position in the industry than Pepsi because of its diversified product line and portfolio, which gives it the upper hand when it comes to competition.

Why did the Cola Wars happen?

The great Cola Wars of the 1980s were a battle between Coca-Cola and Pepsi for dominance.

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The bottom line, coca-cola vs. pepsi business models: what's the difference.

Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT).

Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. Her expertise is in personal finance and investing, and real estate.

Coca-Cola vs. Pepsi Business Models: An Overview

Coca-Cola Co. ( KO ) and PepsiCo, Inc. ( PEP ) are very similar businesses in terms of industry, ideal consumers, and flagship products. Both Coca-Cola and PepsiCo are global leaders in the beverage industry, offering consumers hundreds of beverage brands.

On the surface, Coca-Cola and PepsiCo have similar business models . However, there are differences in the way the two businesses operate and how they attempt to capture market share.

Key Takeaways

• PepsiCo has a diversified product portfolio encompassing the food, snack, and beverage industries.
• PepsiCo typically prices its goods based on consumer demand and demographics.
• Coca-Cola has a centralized focus on the beverage industry, with a presence in numerous and different beverage categories.
• Coca-Cola prices its products in accordance with how industry competitors price comparable goods.
• Though PepsiCo generated more income in 2022, the Coca-Cola brand is more valuable.

The Coca-Cola Company was originally founded in 1892. It calls itself a total beverage company and boasts over 200 different brands of drinks. In 2022, it had $43 billion in net revenue. Its international reach is similar to PepsiCo's, though it operates with different market segment groupings. It also approaches pricing differently.

Product Line

Over 2.2 billion servings of Coca-Cola's beverages are consumed every day. Instead of diversifying across the food, snack, and beverage industries, Coca-Cola has concentrated on building an empire of drinks. Its product lines include:

• Soda: Coca-Cola, Barqs Root Beer, Sprite
• Water: Dasani, Glaceau SmartWater, and Vitaminwater
• Tea: FUZE, Gold Peak Tea, Honest Tea
• Juices: Minute Maid, Hubert's Lemonade
• Other: Body Armor, Monster Energy, Dunkin' Donuts

Coca-Cola measures operations by dividing its products between sparkling (carbonated) beverages and still (non-carbonated) beverages. In Coca-Cola's fiscal year ending in 2022, sparkling beverages represented over 63% of the company's total bottle/can sales.

Market Presence

Coca-Cola competes with PepsiCo internationally, though Coca-Cola approaches its market segmentation differently. Its operational structure divides its markets into the following divisions:

• North America
• Europe, the Middle East, and Africa
• Latina America
• Asia Pacific

Coca-Cola also created a Global Ventures segment to help new brands scale and to identify ways to maximize the scale of select products around the world. This segment contrasts with Pepsi's more segmented approach of geographical divisions.

Coca-Cola also created the Bottling Investment Group segment to strategically assess how products are bottled, shipped, and stored. While PepsiCo has bottling divisions as well, Coca-Cola's organizational structure places greater emphasis on the bottling division as a top-level segment group.

Pricing Strategy

Coca-Cola has referred to its pricing strategy as "meet-the-competition pricing." The company analyzes the pricing strategies of its competitors, sees where comparable products have been priced, and strives to set its own prices around the same level as its competitors.

This type of pricing strategy often relies heavily on production excellence, exceptional service, and other marketing elements that attract customers to Coca-Cola products, since its prices will be comparable to the competition .

With roots dating back to 1898, PepsiCo has created a diverse product line of complementary goods across the food and beverage industries. It also has a direct pricing strategy that analyzes consumer demand and sets prices accordingly.

PepsiCo has built a highly-diversified product portfolio . In 2022, PepsiCo had 23 different brands and about $86.39 billion in annual sales.

Instead of focusing solely on the beverage market, PepsiCo has specifically and intentionally expanded into other consumer packaged goods markets:

• Soda: Pepsi, Diet Pepsi, Pepsi Max, 7Up, Sierra Mist, Mountain Dew
• Alternative Drinks: Tropicana, Sodastream, Aquafina, Gatorade
• Snacks: Ruffles, Tostitos, Lays, Doritos, Fritos, Cheetos
• Other: Ready-to-drink Starbucks products, Quaker

Though seen historically as a beverage/soda company, 58% of PepsiCo's business revenue is generated through its food products.

PepsiCo sells beverages, snacks, and food all around the world through its seven global divisions.

• Frito-Lay North America (branded food and snack business in the United States and Canada)
• Quaker Foods North America (cereal, rice, pasta in the United States and Canada)
• PepsiCo Beverages North America (beverages in the United States and Canada)
• Latina America (all products in Latin America)
• Europe (all products in Europe)
• Africa, Middle East, and South Asia (all products in Africa, Middle East, and South Asia)
• Asia Pacific, Australia, New Zealand, and China (all products in Asia, Australia, New Zealand, and China)

For 2022, 61% of net revenue was generated by the three North America division lines. PepsiCo Beverages was responsible for 30% of the total.

PepsiCo is an industry price setter, pricing its products in accordance with customer demand. It offers various sizes of beverages at various prices that are determined by the number of drinks supplied and consumed for a given area. For example, though Doritos and Tostitos are comparable products, Doritos is a more globally-recognizable brand that may be priced differently based on its popularity.

Similar to Coca-Cola, PepsiCo prices are also based on targeted customer demographics. Health-centric beverages like Tropicana, niche cross-market products like Lipton, and heavily market-saturated products like Pepsi are all priced differently, based on the underlying customer group.

Which Tastes Better?

Everyone has their own tastes. If you like the taste of Pepsi over Coca-Cola, you're in the minority. In a 2021 worldwide study, about two-thirds of consumers think that Coca-Cola is better than Pepsi.

Brand Value

In its latest list edition, Coca-Cola was ranked as the #6 brand on Forbes "World's Most Valuable Brands," while Pepsi was ranked #36. Both companies engage customers with advertising, social media, and by expanding existing product lines with new flavors and healthy alternatives.

Future Growth

Coca-Cola and PepsiCo continue to see tremendous market demand for their products. Both have expanded into the energy drink market, which is thriving. And as customers worldwide continue to be concerned with sugar, chemicals, and the sustainability of packaging, the operations, product lines, and pricing of both companies will adjust to meet their changing preferences and demands.

Does Coca-Cola or Pepsi Have a Better Brand?

Both Coca-Cola and Pepsi have internationally recognizable brands. Coca-Cola is the international leader in beverages, while PepsiCo has a stronger brand presence in the snack and food industry. The Coca-Cola brand is also the more highly valued financially.

Is Coca-Cola Larger Than Pepsi?

Looking at revenue, Pepsi is larger. In 2022, Coca-Cola's net revenues grew to $43 billion, while PepsiCo's grew to $86.39 billion.

What Brands Does Coca-Cola Own vs. Pepsi?

Coca-Cola brands include Sprite, Fanta, Powerade, Dasani, and Minute Maid. PepsiCo owns brands including Gatorade, Frito-Lay, Quaker Oats, and Rockstar Energy.

Who Won the Cola Wars?

Coca-Cola commands a larger market presence in the carbonated soft drink area. Though the rivalry still exists, Coca-Cola has emerged as the more dominant beverage provider today.

Coca-Cola and PepsiCo are two successful and venerable American companies that have stood the test of time.

While both are beverage industry giants, PepsiCo has branched out to offer food products in addition to beverages, as Coca-Cola has maintained its focus on beverages alone. They also take different approaches to product pricing.

Both companies market products that consumers continue to demand and each enjoys a brand loyalty that most companies envy.

Coca-Cola Company. " Coca-Cola Reports Fourth Quarter and Full-Year 2022 Results ."

Forbes. " The World's Most Valuable Brands ."

PepsiCo. " PepsiCo Annual Report 2022 ."

Coca-Cola Company. " FAQs: What brands does The Coca-Cola Company offer? "

Coca-Cola Company. " Our Company ."

Coca-Cola Company. " 2022 Annual Report ," Page 23.

Coca-Cola Company. " Global Ventures (GV) ."

Coca-Cola Company. " Bottling Investment Group (BIG) ."

PepsiCo. " PepsiCo Annual Report 2022 ," Page 60.

PepsiCo. " PepsiCo Annual Report 2022: 2022 Financial Highlights ."

Mashed. " Only About 1 in 3 People Actually Prefer Pepsi To Coke ."

Beverage Industry. " 2021 State of the Beverage Industry: Energy Drinks Flourish as Consumers Seek Functionality ."

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Mother’s Day is coming up! On May 10th we celebrate our moms, grandmas, aunts, sisters, and everyone who plays that much-loved role for us. And since it’s an occasion marked across different ages and demographics, it’s a great opportunity to help you drive engagement by exploring marketing ideas for Mother’s Day.

Pepsi Vs Coca-Cola: Marketing Lessons From Two Iconic Brands

Are you team Pepsi or team Coca-Cola? When it comes to the showdown of sodas, these two giants maintain their own strong positions. For more than a century, these two have not just managed to dominate the market but also have been locked in a fierce battle for market supremacy. The similarity of their products is just a starting point but it’s their marketing duel that presents a more interesting topic of discussion. And this Pepsi vs Coca-Cola marketing phenomenon is what we will explore in today’s blog. 

From the distinct brand elements to the nuances in their brand personalities, the strategies these brands adopt in order to engage their customers and scale different markets – there are various aspects to examine. 

Ready to learn from these beverage giants? Let’s begin with a quick introduction to their origin stories. 

Coca-Cola – the birth of an icon

Pepsi – the rise of a challenger, coca-cola’s brand identity – a lesson in timelessness , pepsi’s brand identity – a lesson in adaptability , pepsi vs coca-cola – understanding their marketing strategies, pepsi’s emphasis on humor , coca-cola’s happy campaigns , pepsi , coca-cola , pepsi vs coca-cola – the verdict, pepsi vs coca-cola – a quick look at their origin stories.

Coca-Cola’s journey began in 1886, when John Pemberton, concocted a syrup that would later become the world-famous Coca-Cola beverage. The name of the brand was derived from the pivotal ingredients namely –  coca leaves and kola nuts. 

Did you know that Coca-Cola was initially promoted as a headache cure? 

Over the years, the brand has evolved and added several new flavors and variants but the classic version that retains the original recipe still has its cult following. 

Pepsi’s inception was in 1893, less than a decade since Coca-Cola was founded. Like Coca-Cola, Pepsi was initially promoted as a relief for indigestion. The drink was marketed under the name “Brad’s Drink” initially only to become Pepsi-Cola in the coming years and just Pepsi a few years later. 

Understanding the Brand Identities – Pepsi Vs Coca-Cola

Can you imagine the Pepsi logo as a script typeface wordmark? Or the Coca-Cola logo in black? Well, you’ll be surprised when you look back at how the brand identities of these two iconic brands have evolved. 

In the Pepsi vs Coca-Cola branding difference, logo design is one of the strongest differentiators. The below image gives a glimpse of the evolution of the Coca-Cola logo. 

As can be seen, the signature script typeface in the Coca-Cola logo was introduced in the early 1880s. Frank Mason Robinson proposed the design based on a personalized Spencerian script typeface. 

From the decorative flourishes to the kerning between the characters, there are many personalized details that create a memorable design. And its inherent simplicity has helped the logo stand the test of time. Moreover, the cheerful typeface also perfectly aligns with the brand’s “happy” personality. 

Now about the next most important brand element – the brand color – red. Did you know that the Pepsi logo was once red? This was even before Coca-Cola started adopting red as its primary logo color. More about this when we discuss the Pepsi brand identity. 

Coca-Cola has been using red as the only color in its logo since 1934. And today, the signature red can of Coca-Cola and the red of its logo are well-recognized brand elements. Furthermore, red also accurately captures the sense of excitement and energy that the brand has been associating itself with. 

Pepsi, in stark contrast to Coca-Cola, has crafted a brand identity that exudes youthful energy and ambition. The below image summarizes the evolution of the Pepsi logo over the years. Notice that Pepsi briefly used a script wordmark logo similar to that of Coca-Cola and that Pepsi was the first one to use red in its logo. 

Pepsi recently underwent a major logo makeover which includes a much more vibrant color palette and an updated typeface. Read more about this rebranding in our blog here . 

Now to understand the Pepsi vs Coca-Cola branding differences better, let’s dissect the current Pepsi logo. First, there is the signature globe that has evolved from the bottle cap design that was once used in the logo. Today it is a much simpler flat design with elegant visual balance. 

The vibrant combination of red and blue is as happy and fresh as the brand’s personality with the blue reminding users of the classic blue Pepsi cans. Finally, about the typeface – the brand today uses a bold sans-serif font that aligns with its refreshed modern marketing strategy. 

On the whole, Pepsi’s brand identity has changed beyond recognition from the time the brand started out. But the idea behind these changes has been to embrace the changing expectations of the audience and to keep up with the evolving market trends. So, the changes have mostly worked in favor of the brand except for the previous globe variant which was heavily criticized by customers and critics. 

In summary, it’s pretty evident that in the Pepsi vs Coca-Cola battle, the respective logo designs and the strategies behind these designs are clear layers of separation between the brands. Let’s now talk about some of the marketing strategies that these brands adopt. 

One of the reasons why the Pepsi vs Coca-Cola rivalry has gained momentum over the years is that the brands’ marketing strategies are quite similar in a lot of ways. Let’s talk about some of the common marketing strategies adopted by both these brands and how each personalizes the respective approach to suit the brand. 

Leveraging Emotions in Marketing

Pepsi and Coca-Cola both know the strength of emotional marketing . Because emotions help foster stronger long-term relationships with customers. However, the kind of emotions each brand leverages and how they address them are what set them apart. 

Pepsi, for example, is known to often use humor in its advertising. This perfectly aligns with the brand’s focus on the younger generation in contrast with Coca-Cola’s classic branding that spans various generations. 

The below campaign is a good example of Pepsi’s use of humor in its campaigns. 

Here’s another old commercial from Pepsi that adds humor and takes a direct dig at Coca-Cola. The commercial is a good reminder of the fact that Pepsi has a strong role to play in the direct competition between the brands and the competitive advertising they often adopt. 

Coca-Cola, on the other hand, incorporates “happiness” as the core emotion in most of its campaigns. And it is known for its heart-touching commercials and campaigns. 

Take the Christmas commercials from the brand for example. The brand has established a strong connection with Christmas through its ads featuring Santa Claus and the commercials crafted around the occasion, like the one below. The commercial featured below highlights how the brand consistently talks about “sharing a Coke”, about “sharing happiness”. 

Coca-Cola’s global-level Share a Coke campaign is yet another example of the brand’s reliance on strong emotions in its marketing. The campaign allowed customers to customize their Coca-Cola bottles to share with their loved ones. And the brand took to advertising through billboards, social media ads, and TV commercials to promote the idea. Reportedly, the brand gained over 25 million new Facebook followers from this campaign. 

Sponsoring Events and Building Communities

One of the most common things you’ll observe when comparing the Pepsi vs Coca-Cola marketing strategies is that they both heavily invest in music and sports events. Both these are events that help connect people across the globe and bring the potential to build strong communities. 

Pepsi was a long-standing halftime show sponsor for the NFL and was recently replaced by Apple . However, it still remains a proud sponsor at the event and with the 2023 NFL event, the brand announced that it would be the “Official Zero of the NFL”. 

There are numerous other sports sponsorships that the brand is known for including its recent partnership with UEFA Champions League . 

Coca-Cola has a long-standing partnership with Olympic games which happen to be just one among the many sports sponsorships that the brand is known for. In fact, the brand has established its presence in every single host city of the Olympic Games since 1928. This is one of the ways in which the brand nurtures a strong community by appealing to sports fans all over the world. 

In addition to this, Coca-Cola actively supports the Paralympic Games, NCAA, and various local sports events in the countries where it is present. The brand’s inclusive approach to its sponsorships is one of the notable elements.

In the world of music, Coca-Cola was a longtime sponsor of the popular TV show “American Idol.” This partnership included various marketing campaigns and promotions. This turned out to be one of the most iconic partnerships in the television industry. 

Thus in terms of the sponsorship strategies and the types of events that the brand sponsors the Pepsi vs Coca-Cola differences fade away. 

Celebrity Endorsements 

Another common marketing approach you’ll see when comparing Pepsi vs Coca-Cola is their focus on celebrity endorsements. Both brands rely on diverse celebrities from pop culture, sports, and other industries. 

The below video is an old Pepsi commercial featuring Michael Jackson, undoubtedly one of the finest commercials from the brand. Ads like this one have helped Pepsi earn a lasting place in the hearts of music lovers. 

Pepsi’s recent lineup of commercials for Super Bowl 2023 featuring Steve Martin and Ben Stiller is yet another example that shows that the brand has been consistent in partnering with celebrities for its endorsements. Moreover, this campaign is another good example of the brand’s use of humor in marketing. 

Coca-Cola too has similar priorities when it comes to celebrity endorsements. From the 1980s commercials featuring Bill Cosby, like the lineup below, there have been several celebrity-studded campaigns from the brand. 

Keeping up with the rapidly changing content consumption patterns, Coca-Cola collaborates not just with famous movie stars but also with television celebrities and social media influencers so as to connect with diverse demographics of audiences. The below video is a recent Coca-Cola commercial featuring Gigi Hadid. Notice that the ad stays true to the brand’s successful formula of talking about celebrations, traditions, and people coming together. 

Tapping Into Product Pairing as a Way of Marketing

When you think of Pepsi, do you imagine a Pepsi can alone or next to a pizza? When you think of Coca-Cola, do you see just the red can or the red can next to a burger? If you imagined these food pairings when thinking of the respective beverages, you are not alone. This is the effect that the brands have achieved by consistently incorporating product pairing in their ads. 

They do this either along with brand partnerships or just to evoke hunger and to make you think of the delectable food pairing they suggest the next time you want to grab a bite to eat. This way, the brands achieve two things – they attach their respective beverages to popular food items so that you start viewing them as add-ons, and mandates in your meals. Another is that they establish memorable connections between their beverages and occasions. 

View this post on Instagram A post shared by pepsi (@pepsi)

The above social media post from Pepsi is an example of how the brand utilizes food pairings to boost sales. The idea works even for Pepsi’s local campaigns. The brand builds on the idea and puts together campaigns that suggest Pepsi as a good food pairing with some popular local cuisines. The below ad was designed to promote Pepsi in Thailand. 

Coca-Cola also regularly recommends food pairings on various occasions and for different seasons. 

View this post on Instagram A post shared by Coca-Cola (@cocacola)

The below short video from Coca-Cola India features a classic Indian dish vada pav and of course, Coca-Cola as a great pair to go with it. Similar to other Coca-Cola ads, the brand uses mouth-watering visuals to grab attention. This shows how the brand optimizes the idea of capitalizing on food pairing in a mindful way to appeal to its local audience. 

View this post on Instagram A post shared by Coca-Cola India (@cocacola_india)

KIMP Tips: As can be seen from the social media posts and social media pages of both Pepsi and Coca-Cola, page aesthetics play a crucial role. When comparing the pages of Pepsi vs Coca-Cola you’ll notice that the brands have both established their own visual styles. From colors to brand fonts and unique illustration styles, the brands use consistent visuals to leave a lasting impact on their audiences. All of this shows the need to start working on your social media aesthetic. 

In conclusion, who wins in the battle of Pepsi vs Coca-Cola? It’s clear that both beverage giants have their own unique strengths and strategies that have propelled them to the forefront of the soft drink industry. From branding to marketing, they’ve consistently demonstrated their ability to engage with consumers effectively. Their enduring presence in the market is a testament to their capacity to learn from their own successes and, interestingly, from each other’s missteps as well.

What’s particularly striking is their unwavering commitment to maintaining consistent brand messaging and visuals. The iconic logos, memorable slogans, and distinct color schemes are just as vital today as they were when these brands first emerged. The power of visual branding is undeniable and continues to be a cornerstone of their success.

To stay ahead in a competitive market, it’s crucial to leverage the same principles of visual branding that have guided these beverage giants to success. If you’re looking to maintain an edge in branding and marketing, consider the benefits of registering for an unlimited design subscription like KIMP . By doing so, you can ensure that your brand remains strong and distinctive, just as Pepsi and Coca-Cola have done for over a century. Remember, in the battle of brands, a powerful visual presence is often the key to victory.

So, what are you waiting for? Register now for a free 7-day trial of KIMP’s unlimited design plans. 

12 Mar, 2024

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