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.
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