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

The Cola Wars Pepsi vs CokePepsiCo. Incorporated and The Coca-Cola Company be the two largest and oldest archrivals in the carbonated soft drink (CSD) fabrication. 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 zesty 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 kn consume as the Cola Wars, began in the 1960s when Coca-Colas dominance was being increasingly challenged by Pepsi Cola. The competitive environs between the rivals was intense and well-publicized, forcing both companies to continuously frame and implement strategic variations as a means to create a competitive advantage. The competition fostered and stimulated continuing growth in an industry which many predicted in the early 1970s to be on the brink of maturity. Reasons for the prediction arose from the fact that further growth of per capita consumption of soft drinks is passably static regarding how much peck are able to consume on a daily basis. Furthermore, both Pepsi Cola and Coca-Cola offered a limited issue of products that looked the same, tasted the same, and bubble into foam the same, thus questioning whether further actual growth in gross revenue was possible.Pepsi Cola and Coca-Colas marketing strategies postulate been as indistinguishable as the products themselves. Relying on colorful images, lively words, comely people, interesting bottle designs, and contagious jingles, Pepsi and Coke propelled their respective products into the American and worldwide 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 advantageous competitive overture. This style and approach is what makes Pepsi-Cola and Coca-Cola distinguishable.The objective of Coca-Colas advertisements was to strategically position their product in peoples mind in order to maximize its acceptance. This strategy would in some way or a nonher have a correlational statistics to the changing social values of the period. Trying to keep step with individually generation and era has been an important factor in advertising for Coke. It strives not to be too further 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 advanced 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 agreement from networks of independent bottlers to company-owned bottling systems. This transformation 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 bottlers, the vast majority of which led to inculpative pleas. The FTC has conducted many investigations in the CSD industry, including investigations of horizontal and vertical acquisitions in the industry.Sources Cited1. Enrico, Roger & Kornbluth, Jesse (1986).The Other make fun 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 Report Issued to commons Stock Shareholders6. The Coca-Cola Company Annual Report Issued to Common Stock Shareholders