Cola wars

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The cola wars are a series of mutually-targeted television advertisements and marketing campaigns since the 1980s between two long-time rival soft drink producers, The Coca-Cola Company and PepsiCo. The battle between the two dominant brands in the United States intensified to such an extent that the term “Cola wars” was used to describe the feud. Each employed numerous advertising and marketing campaigns to outdo the other.

Short periods of intense competition between the two firms contrast with how the two firms avoid competition most of the time by focusing on different consumers, sponsoring different sports, differentiating their logos, choosing different colors for their packaging, and building different images for their brand.[1]

In periods of intense competition, one firm challenges the other by asserting superiority on one specific aspect of their products. This leads to direct competition and changes in market shares or in prices. For example, Pepsi marketed bigger bottles for the same price as Coca-Cola during the Great Depression in the 1930s.[1] The memory of such periods of frontal competition may help both firms maintain the more profitable status quo. Both firms generally prefer not to compete on real product differences, such as price or taste, because this offers only short-term opportunities for additional profit.[1]

Coca-Cola[edit]

Coca-Cola advertising has historically focused on wholesomeness and nostalgia for childhood. Coca-Cola advertising is often characterized as "family-friendly" and often relies on "cute" characters (e.g., the Coca-Cola polar bear mascot and Santa Claus around Christmas).[citation needed]

One example of a heated exchange that occurred during the Cola Wars was Coca-Cola's making a strategic retreat on July 11, 1985, by announcing its plans to bring back the original "Classic" Coke after recently introducing New Coke.[2]

Pepsi[edit]

Pepsi Challenge[edit]

In 1975, Pepsi began showing advertisements based on the Pepsi Challenge, in which ordinary people were asked which product they preferred in blind taste tests.

Drink Pepsi, Get Stuff[edit]

In the mid-1990s, Pepsi launched its most successful long-term strategy of the Cola Wars, Pepsi Stuff. Consumers were invited to "Drink Pepsi, Get Stuff" and collect Pepsi Points on billions of packages and cups; they could redeem the points for free Pepsi lifestyle merchandise. After researching and testing the program for over two years to ensure that it resonated with consumers, Pepsi launched Pepsi Stuff, which was an instant success. Tens of millions of consumers participated. Pepsi outperformed Coke during the summer of the 1996 Summer Olympics—held in Coke's hometown—where Coke was a lead sponsor of the Games. Due to its success, the program was expanded to include Mountain Dew and Pepsi's international markets worldwide. The company continued to run the program for many years, continually innovating with new features each year.[3]

The Pepsi Stuff promotion became the subject of a lawsuit. In one of the many commercials, Pepsi showed a young man in the cockpit of a Harrier Jump Jet. Below ran the caption "Harrier Jet: 7 million Pepsi Points". There was a mechanism for buying additional Pepsi Points to complete a Pepsi Stuff order. John Leonard, of Seattle, Washington, sent in a Pepsi Stuff request with the maximum amount of points and a check for over $700,000 USD to make up for the extra points he needed. Pepsi did not accept the request and Leonard filed suit. The judgment was that a reasonable person viewing the commercial would realize that Pepsi was not, in fact, offering a Harrier Jet. In response to the suit, Pepsi added the words, "Just Kidding", under the portion of the commercial featuring the jet as well as changed the "price" to 700 million Pepsi points (see Leonard v. Pepsico, Inc.).

Online bonus points[edit]

Coca-Cola and Pepsi engaged in a competition of online programs with the re-introduction of Pepsi Stuff in 2005; Coca-Cola retaliated with Coke Rewards. Both are loyalty programs that give away prizes and product to consumers who, after collecting bottle caps and 12- or 24-pack box tops, then submitted codes online for a certain number of points. However, Pepsi's online partnership with Amazon allowed consumers to buy various products with their "Pepsi Points", such as mp3 downloads. Both Coca-Cola and Pepsi previously had a partnership with the iTunes Store.

Comparison of products[edit]

Many of the brands available from the three largest soda producers, The Coca-Cola Company,[4] PepsiCo[5] and Keurig Dr Pepper, are intended as direct, equivalent competitors. The following chart lists these competitors by type or flavor of drink.

Flavor/type PepsiCo The Coca-Cola Company Keurig Dr Pepper
Cola Pepsi Coca-Cola RC Cola
Diet/sugar-free cola Diet Pepsi/Pepsi Light
Pepsi Max
Pepsi ONE
Pepsi Zero Sugar
Pepsi Next
Pepsi True
Diet Coke/Coca-Cola Light
Tab
Coca-Cola Zero Sugar
Coca-Cola Life
Diet Rite
Diet RC
Caffeine-free cola Caffeine Free Pepsi Caffeine Free Coca-Cola RC 100
Cherry-flavored cola Pepsi Wild Cherry Coca-Cola Cherry Cherry RC
"Pepper"-style Dr Slice
DOC 360
Mr. Pibb / Pibb Xtra Dr Pepper
Orange Mirinda
Tropicana Twister
Tango
Slice
Ivi[6]
Fanta
Minute Maid
Simply Orange
Royal Tru Orange
Crush
Sunkist
Lemon-lime Teem
Slice
Sierra Mist
7 Up (in countries other than the US)
Sprite
Lemon & Paeroa
7 Up (in the US)
Other citrus flavors Mountain Dew
Kas
Izze
Citrus Blast
Mello Yello
Vault
Fresca
Lift
Lilt
Sun Drop
Squirt
Ginger ale Patio Seagram's Ginger Ale Canada Dry
Schweppes
Vernors
Root beer Mug Root Beer Barq's
Ramblin' Root Beer (until 1995)
A&W Root Beer
Stewart's Rootbeer
Hires Root Beer
Cream soda Mug Cream Soda Barq's Red Creme Soda A&W Cream Soda
Stewart's Cream Soda
Juices Tropicana
Dole
(prepackaged only, under license)
Minute Maid
Fruitopia
Simply Orange
Mott's
Nantucket Nectars
Snapple
Iced tea Lipton
Brisk
Pure Leaf
(ready-to-drink products only, under license from Unilever)
Nestea
(manufactured by Nestlé in the US and by a joint venture between Nestlé and Coca-Cola elsewhere)
Gold Peak Tea
Fuze
Snapple
Arizona (distribution only)
Sports drinks Gatorade
Propel
Powerade
Aquarius
Vitamin Water
All Sport
Energy drinks AMP
Rockstar
Sting
Kickstart
Full Throttle
NOS
Relentless
Burn
Venom
Bottled water Aquafina
LIFEWTR[7]
Dasani
Kinley
Smartwater
Dejà Blue

See also[edit]

References[edit]

  1. ^ a b c Crosetto, Paolo; Gaudeul, Alexia (2017). "Choosing not to compete: Can firms maintain high prices by confusing consumers?". Journal of Economics & Management Strategy (26): 897–922. Retrieved November 7, 2017.
  2. ^ Kim Bhasin (January 1, 2013). "COKE VS. PEPSI: The Story Behind The Neverending 'Cola Wars'". Business Insider. Retrieved November 11, 2015.
  3. ^ "Pop Go the Points". Archived from the original on 2008-03-21.
  4. ^ "Brands". The Coca-Cola Company. Retrieved 2013-08-18.
  5. ^ "PepsiCo Corporate Site". PepsiCo.com. Retrieved 2013-08-18.
  6. ^ "Ivi".
  7. ^ "LIFEWTR". PepsiCo, Inc. Retrieved 2018-02-13.