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Coca-Cola: Meeting the Pepsi Challenge

Coca-Cola: Meeting the Pepsi Challenge. Industry profile. Soft drink market demand is very strong in all over the world. Now there are two major companies of Soft drinks Coca-Cola & Pepsi Co which are strong competitors to each other.

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Coca-Cola: Meeting the Pepsi Challenge

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  1. Coca-Cola: Meeting the Pepsi Challenge

  2. Industry profile Soft drink market demand is very strong in all over the world. Now there are two major companies of Soft drinks Coca-Cola & Pepsi Co which are strong competitors to each other. • Pepsi was introduced officially in U.S.A in 1903by a young pharmacist named Caleb Bradham. By the end of 1910, there were Pepsi-Cola franchises in 24 states. Now it is known as PepsiCo. • The world's largest beverages company Coca-Cola begins more than century ago in 1886. The Coca-Cola Company's world head quarters is in Atlanta Georgia (U.S.A).

  3. Q-1. How did Pepsi position its product with the Pepsi Challenge? How did it position through the provision of information? A. Pepsi positioned its product with the Pepsi challenge by consumer research. They gave the consumers blind taste tests of Pepsi and Coke. Consumer preferred Pepsi to Coke in the test. Pepsi used this information to take the position.

  4. Q-2. Why are the themes such as “ Have a coke and a smile” so effective in accomplishing the tasks when they seem to be more reminder-oriented? A. Though the themes such as “ Have a coke and a smile” are more reminder-oriented, they are effective because Coca-Cola has featured “Mean Joe” Greene of the Pittsburg Steelers and his temperament has changed after getting Coke. The power of drinking Coke when tired and thirsty is evident in the ad and consumers have received it positively.

  5. Q-3. How might a salesperson use the Joe Greene ad to increase his or her own sales? A. A sales person might use the Joe Greene ad by showing the impact of it on the consumers that how well they have received the product and the ad

  6. Q-4. How might promotions be used with these theme advertisements? Would price play a part in such promotions? • With the theme advertisement promotions might be used by running ads simultaneously on all TV and other social media network, decentralizing the systems, being responsive to bottlers needs, getting-together with the bottler, discounting prices, bringing additional new products, targeting different age groups and so on. • Yes, price will play a very crucial part in such promotions.

  7. Q-5. What promotions for Coke, Pepsi or others does the grocer have working in the store right now? How are they coordinated with national advertising? A. Right now the grocer has different promotions for different products such as volume discounts, sampling, demonstrations, exhibits, • Window banners • Greeting cards • Home parties • personal selling • Direct mail • Business cards • They are coordinated with the national advertising in that these ads are used fora national target market

  8. Q-6.Why do you think Coke was slow to respond to the Pepsi Challenge? A. Coke was slow to respond to the Pepsi Challenge because of its attitude of being an unchallenged number 1 for so many years.

  9. Q-7. What other basic Coca-Cola and Pepsi ad themes do you remember? Are such themes push or pull strategies? Other basic Coca-Cola and Pepsi ad themes • Coke – Catch the wave • Parady of Pepsi Vanilla, a direct challenge to Vanilla Coke. • The Godfather? Only funnier Pepsi • Joy of Pepsi #1, #2 • Joy of Pepsi #3. Pepsi’s confession? Or just an April fool’s joke. • Coke’s polar bear decides to go for Pepsi? • Such themes are pull strategies.

  10. Q-8. What can Coke do to counteract the Pepsi Challenge and why have they not attacked the challenge head-on? A. Coke can put more emphasize on the taste to counteract the Pepsi challenge in the long run. • They haven’t attacked the challenge head-on because by doing so capturing market would not be easy. Besides Coke had other problems which were more important to be addressed. Finally, following any strategy which the rival is maintaining is not a good strategy at all.

  11. Can you devise a head-on strategy?

  12. Q-9. Comment on Pepsi’s selective promotional strategy: What do you think about it? Why has it worked? Will it continue to work? A. Pepsi used selective promotional strategies. It used ad only in sales areas in which Coke had a commanding sales lead. Besides it didn’t run the challenge in Atlanta, Coke’s head-quarters market area, for what Coke’s executives couldn’t see the effects of Pepsi first hand. • I think Pepsi’s selective promotional strategy was excellent. • The strategy worked because it helped Pepsi to keep Coke clue less about consumer feed-back of Pepsi at first hand. • I don’t think it will continue to work because Coke will at any time realize the effect.

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