Wednesday, December 16, 2015

The race between Coca-cola and Pepsi

Ayah Abdelsalam
AP Economics
Mrs. Straub
12/15/15

The race between Coca-cola and Pepsi



The competition between Coke and Pepsi has been an ongoing battle for years. Both are very popular brands of soda, and perhaps the most recognizable brand of soda as well. Many people have their own preferences based on the flavor of the soda, each brand’s political standings on certain subjects, etcetera. However, many opinions may also be greatly influenced by each brand’s personal advertisements.
Often in an Oligopoly, similar to the one between Coca-cola and Pepsi, Advertisements are a great influence on consumers used by these companies. Pepsi and Coca-cola are great examples of this. The coca-cola brand uses it’s recognizable polar bear to distinguish it’s product. Pepsi’s logo can be easily recognized. Another one of Coca-cola’s major advertising techniques is the “share a coke” campaign. With the “share a coke” campaign, Coca-cola has taken a lead in the advertising section of their competition.

Market shares of Coca-cola and Pepsi

Often times when one of the brands releases a new advertisement, the other releases one to combat the growth of the first brand. Either way, considering the fact that successful advertising benefits both companies, regardless of the opposing competition’s actions, it can be inferred that a dominant strategy for both companies is to advertise.
With two recognizable companies battling for dominance, there is bound to be some competition. In order to attempt this, both Coca-cola and Pepsi use advertising to their advantage to win over customers. However, with the development of the recent “Share a Coke” campaign, Coca-cola has seemed to pull through, and obtain a larger market share.















Works Cited

"Battle of the Brands: Pepsi vs Coke Advertisements." Hongkiatcom. Web. 15 Dec. 2015.

“Coca-cola vs. Pepsi: The Economics behind Coke's Dominance." Economics Student Society of Australia ESSA Cocacola vs Pepsi The Economics behind Cokes Dominance Comments. 17 Oct. 2012. Web. 16 Dec. 2015.

"Flat or Fizzy?" The Economist. The Economist Newspaper, 12 Feb. 2015. Web. 16 Dec. 2015.

14 comments:

  1. I enjoyed reading this because I've always been interested in the on going battle between Coke and Pepsi. I did not know that Coke had a larger market share than Pepsi, but if I think about it, I've seen a lot more Coke advertisements than Pepsi advertisements lately. I would like to add that because it is an oligopoly, Coke and Pepsi should collude to raise their joint profits. That way they both could benefit. However, I think it might be hard for both companies to swallow their pride and they might not trust each other. Either way, I'm curious to see what new advertisements Pepsi comes up with to challenge Coke.

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  2. I've never liked Pepsi, I've always been a coca-cola guy. So I can definitely see why coca-cola has a greater market share compare to the other competitors. I like seeing the battle out there between the two companies, because they are indeed quite similar, but they have their differences which a majority of people will pick a side. There is definitely more coke advertisements on TV compared to Pepsi, and I feel like coke does a better job with making their advertisement especially with the cans with peoples names on it, it kind of makes people want to go out and just find a can with their name on it. Overall I've always thought coca-cola has been a greater known and more popular company.

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  3. I agree that the battle is an oligopoly and often when one comes out with an advertisement the other comes out with one. Overall most people prefer one over the other just because of taste and they won't let a commercial change their mind, the trade off of a commercial is simply not worth it.

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  4. This comment has been removed by the author.

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  5. Both coke and Pepsi are so similar I agree that the two companies should join together and make more profit all together. They both have different options like cherry and vanilla and part of this is because the oligopoly, when one makes something different the other follows. You often see many more advertisements for Coke than Pepsi and I believe this is part of the reason they have so many more sales than Pepsi products.

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  6. Both coke and Pepsi are so similar I agree that the two companies should join together and make more profit all together. They both have different options like cherry and vanilla and part of this is because the oligopoly, when one makes something different the other follows. You often see many more advertisements for Coke than Pepsi and I believe this is part of the reason they have so many more sales than Pepsi products.

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  7. pespsi has quite the competition, its only chance is to come up with a good campaign similar to cokes "share a coke" campaign. If Pepsi effectively produces a good campaign to sell the sofa perhaps Pepsi and Cokes market share will be almost equal or at least more equal. However Coke seems to have the lead and will stay in the lead due to such popularity capturing the public with good advertising.

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  8. I can see that Coca-Cola is in the lead, their "Share a Coke" champagne is great advertisement. This year at state fair there company had a station where you can get two free cans of soda with you're name and someone else's name on the can. They gave you samples of all the Coke products while you stand in line. I got my friend's and my name on the cans. Because of that champagne their business is increasing in profit. Pepsi they only have commercials as of what I've seen. They should do more to get people's attention. I don't really drink soda unless it's Ginger Ale and that was every full moon but they're almost every where I go at parties, restaurants and holiday greetings.

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  9. pespsi has quite the competition, its only chance is to come up with a good campaign similar to cokes "share a coke" campaign. If Pepsi effectively produces a good campaign to sell the sofa perhaps Pepsi and Cokes market share will be almost equal or at least more equal. However Coke seems to have the lead and will stay in the lead due to such popularity capturing the public with good advertising.

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  10. I like how you brought up the commercial factors of both sodas. As a consumer I can connect to the sodas usage of logos and advertising techniques. It is interesting to see how Coca-Cola is kind of owning the ad world. I would like to see more of a battle between the two. What I would like to know is how much the ads actually do for the revenues of each company.

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  11. I think that the classic coke vs pepsi debate is always interesting, but I think more goes into it than just an advertising campaign. A lot of what goes into it is what you grew up around. If a kid grows up and their parents are always drinking a certain brand they will more than likely continue to drink that soda unless there is something that specifically changes their mindset.

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  12. Coke and Pepsi have been battling for years to gain an increase in their consumers. Personally my family always buys Coke but one of my aunts will only drink Pepsi. So I think that consumers will buy based off of their personal tastes. Also with advancing technology both Coke and Pepsi have created a syrup that for the at home soda making machines. This battle of who is better will continue for a long time I believe.

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  13. There have been an ongoing battle between Coke and Pepsi for so many years, and to me personally, I like Coke better than Pepsi, to me it just tastes better. I always love seeing the Coke vs. Pepsi fights and to see what new things they bring to the table. How Coke and Pepsi are sold is kind of based off of the consumers tastes rather than popularity.

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  14. Do you love Pepsi or Coke?
    ANSWER THE POLL and you could receive a prepaid VISA gift card!

    ReplyDelete

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