Coca-Cola and Pepsi are the two leading soft drink in the U.S. and the world. These two giants head the whole soft drink market--Coca-Cola leads with a 41 percent market share and Pepsi challenges strongly with about 31 percent. Coca and Pepsi are the main combatants in the "soft-drink wars". They wage constant and pitched battles for retail shelf space. Their weapons include a steady stream of new products, an army of distributor salespeople, and huge advertising and promotion budgets.
Coke offers a long list of brands and brand versions--Coke Classic, Coke II, Cherry Coke, Diet Coke, Caffeine-Free Coke, Diet Cherry Coke, Caffeine-Free Diet Coke, Spirit, Tab, Mellow Yellow, Minute Maid soda, and others. PepsiCo has a Five-brand Pepsi Cola: Pepsi, Diet Pepsi, Mountain Dew, 7UP and Mirinda.
Advertising is very expensive--it allows the company to dramatize its products through the artful use of visuals, print, sound, and color. Advertising can be used to build up long-term image for a product, such as Coca-Cola ads.
Coca-Cola spends almost $400 million a year advertising its soft drinks. Expensive Coca-Cola ads on television are designed primarily to remind people about Coca-Cola, not to inform or persuade them. Coca-Cola, long the world's leading soft drink, delivers on the simple but enduring promise, "Always Coca-Cola"--always thirstquenching, always good with good, always cool, always a part of your life. It takes care of their customers; market share and profits will follow.
PepsiCo spends 5.7% of its total U.S. sales on the advertising--$1039 million. Pepsi uses ads filled with kids, sports, and rock music to target the world's teenagers. It recently introduced sugar-free Pepsi Max in 16 countries, including Britain, Australia, and Japan, with a single set of ads aimed at teens that like to live on the world side. They also hire well-known actors, athletes, and even cartoon characters to deliver their messages. Giant Shaquille...