How to remain in the rank of the best soft drink companies? How to react properly to the promotion turns of the rivals?
The Coca-Cola Company knows its business well. For instance, its advertising slogans have changed several times during its history, from 'The pause that refreshes' and 'I'd like to buy the world a Coke' to 'Coke is it'...
In 1985, Coca-Cola challenged the market with its New Coke. The tests, made before, showed that many people had preferred Pepsi's taste with more lemon oil and less orange oil in it. Thus, the formula of Cola changed to emulate Pepsi's taste. Soon, the test results of the new taste established that consumers liked the New Coke more than Coke and Pepsi. This was the start for the taste-racing.
In 1992, the company produced a reduced-sugar Coke-II, in 2005, announced the launching of the Diet Coke with an artificial sweetener, sucralose, which Pepsi also uses in the Pepsi One. However, in 2004, the sales volumes of the Diet Pepsi were larger than of the Diet Coke. The appearance of the diet drinks on the market is due to the target audience of both companies. They are oriented on young people, who care more about the health.
In 2004, Coca Cola raised its expenditures for the advertising of the new drinks, such as Dasani. Unfortunately, it did not stimulate selling. At the same time, the Pepsi-Cola North America marketing director stated that the costs for the Diet Pepsi advertising will be twice as much, whereas, the advertising campaign for Pepsi Cola will be less, in comparison with the previous year. The Coca-Cola Company has similar advertising plans. However, it will not spend less money for the promotion of the Classical Cola.
More than a twenty-year history of competition has not put the full stop in the novel "Coke vs. Pepsi". These days, each brand has its own position in the market. Each company has a provocative rival to stimulate their own policy.
In July 2005, an internet research showed that forty seven Americans out of one hundred chose Coca-Cola, whereas, twenty eight people preferred Pepsi. This may be the result of the companies' target audience. The Coca Cola's primary audience is adults. Pepsi attracted mostly people under twenty five, Latin Americans and sport fans. Nevertheless, fifty three percent of the young people chose Coca Cola; Pepsi's slogan 'Choice of a new Generation' attracted only twenty eight percent.
Both companies are changing their geography. In 2004, Pepsi was introduced to China and India. Coca Cola, which is dominating in every part of the U.S. except New York, moved to Russia. The Greek Coca-Cola "Hellenic Bottling Company" S.A. together with the Coca-Cola Company bought the Russian juice company "Multon". This lets expand the market of non-aerated drinks.
This constant catch-up with one another will go on. Nevertheless, Coca Cola appears to be winning. The company takes any opportunity to turn it to their own advantage. For instance, urban legends about its acidity gave birth to the Internet site of Cokelore, where you can learn about the unusual use for Coke. In addition, in Las Vegas, Coca Cola has the Coca-Cola Museum, which treats its visitors with soda from around the world. Can this be scored to Coca Cola's fixture list?