The Cola Wars: Pepsi vs Coke Essay -- Pepsi-Cola and Coca-Cola

The dumbbell Wars Pepsi vs CokePepsiCo. Incorporated and The Coca-Cola Company are the two largest and oldest archrivals in the change soft drink (CSD) industry. Coca-Cola was invented and first marketed in 1886, followed by Pepsi Cola in 1898. Coca-Cola was named after the coca leaves and kola nuts John Pemberton used to make it, and Pepsi Cola after the beneficial effects its creator, Caleb Bradham, claimed it had on dyspepsia. The rivalry between the soda giants, also known as the Cola Wars, began in the 1960s when Coca-Colas dominance was world increasingly challenged by Pepsi Cola. The competitive environment between the rivals was intense and well-publicized, forcing both companies to forever establish and implement strategic variations as a means to raise a competitive advantage. The competition fostered and stimulated continuing growth in an industry which many predicted in the early 1970s to be on the line of maturity. Reasons for the prediction arose from the fact tha t further growth of per capita consumption of soft drinks is fairly static regarding how much people are able to consume on a daily basis. Furthermore, both Pepsi Cola and Coca-Cola offered a limited number of products that looked the same, tasted the same, and bubble into foam the same, thus questioning whether further substantial growth in sales was possible.Pepsi Cola and Coca-Colas marketing strategies have been as indistinguishable as the products themselves. Relying on colorful images, lively words, beautiful people, interesting bottle designs, and contractable jingles, Pepsi and Coke propelled their respective products into the American and international mainstream. The changing faces of Pepsi and Cokes management, however, facilitated the brand image according to their own style and what they saw as an opportune competitive approach. This style and approach is what makes Pepsi-Cola and Coca-Cola distinguishable.The objective of Coca-Colas advertisements was to strategicall y position their product in peoples mind in order to increase its acceptance. This strategy would in some way or another have a correlation to the changing social values of the period. Trying to keep footfall with each generation and era has been an important factor in advertising for Coke. It strives not to be too removed behind or too far ahead of its time the product has ... ... strategies in order to increase their sales growth.The rivalry between the two soda giants required new strategies to be continuously implemented. The new strategies devised by Pepsi and Coke to deal with the changing environment could not have been effectively implemented without changing their distribution system from networks of independent bottlers to company-owned bottling systems. This transition has been essential to both companies introduction of new products and new forms of pricing, promotion, and advertising. The U.S. Department of Justice has brought many price-fixing cases against CSD bo ttlers, the vast majority of which led to guilty pleas. The FTC has conducted many investigations in the CSD industry, including investigations of naiant and vertical acquisitions in the industry.Sources Cited1. Enrico, Roger & Kornbluth, Jesse (1986).The Other Guy Blinked. New York The Free Press.2. Coke v Pepsi, The Economist, January 29, 1994, pp. 67-68.3. http//www.pepsi.com4. http//www.coca-cola/home1.com5. PepsiCo. Inc. Annual embrace Issued to Common Stock Shareholders6. The Coca-Cola Company Annual Report Issued to Common Stock Shareholders