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Coke Vs Pepsi

Essay by   •  February 27, 2019  •  Case Study  •  561 Words (3 Pages)  •  64 Views

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1. I think Coke and Pepsi do taste slightly different, but not too much to be easily recognized if it comes down to a “blind test.” Upon my research, the taste difference is the result of a small change in the ingredients of both companies, despite their numerous similarities. Coca-Cola has a touch more sodium while Pepsi has slightly more sugar and caffeine.  However, I think there is also a small portion of external factor affecting people’s preference one brand over another. Consumers in different countries value the brands differently. For instance, due to Pepsi being more dominant than Coca-Cola in Southeast Asia, I was more familiar with the taste of Pepsi. Hence, I used to prefer Pepsi over Coke when I was living in Vietnam. However, over the years living in America, my preference changed, which I believe is due to the greater availability of Coke products here than in Vietnam.    

2. Pepsi is the biggest and closest competitor of Coca-Cola for over decades. Their competing is mainly due to the similarities in products manufacturing and customer targeting. The two brands compete across several categories including soda beverages, health, and energy drinks as well as bottled water and juices. The biggest competition of the two brands known is in the Cola category. Besides Pepsi, other less-known Coca-Cola’s competitors including Red Bull, Dr. Pepper Snapple, Nestle, and Parle.

3. Substitute for Coke or Diet Coke can vary depends on consumer behaviors and preferences. Coffee, tea, juice, detox water and many new healthy sodas that are flooding the market can be options for Coke alternatives.  

4. With the rise of new brands targeting healthy alternatives and consumer preference for fitness and a healthy lifestyle, I think the Cola industry will decline. As far as health disadvantages, consumers now aware that soda is linked to many health issues such as diabetes, obesity, heart attack, cancer, and high blood pressure. Not only are these issues scary, but they are also very costly to manage. Therefore, many consumers have begun to ditch colas and switched to more healthy alternatives.  

5. Coca-Cola has shown such great performance for a long time. They are also known as king in the soda industry for over decades. Product and packaging innovations play a big role in that value, as do refreshing experiences the brand provides fans. Even in today market, while the Cola industry is shaken and many soft drink companies are switching to alternative beverages, they still manage to follow the trend and win back customers. In the most recent announcement, Coca-Cola introduced new flavors, like Ginger Line and Zesty Blood Orange, aiming at a younger crowd. "Millennials are now thirstier than ever for adventures and new experiences, and we want to be right by their side," Rafael Acevedo, the group director for Diet Coke in North America, said in a statement about the new look and flavors. "We're making the brand more relatable and more authentic." The brand even takes a further step in promoting their new products by giving out samples and reaching out to their target market at different schools and colleges. The brand has also turned heavily towards smaller product versions, such as eight-ounce mini cans, which give consumers the freedom to buy Coke in smaller portions if they’re concerned about calories and sugar, and are more affordable.  



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