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Submitted by joni on December 20, 2005
Category: Business
Words: 4893 | Pages: 20
Views: 708
Popularity Rank: 11,259
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Summary
There is little doubt that the most spirited and intense competition in the beverage world is between coca-cola and Pepsi. Coca-cola was invented and first marketed in 1886, followed by Pepsi in 1898. Coca cola was named after the coca leaves and cola nuts John Pemberton used to make it, and Pepsi after the beneficial effects its creator, Caleb Bradham, claimed it had on dyspepsia. For many years, Coca cola had the cola market cornered. Pepsi was a distant, nonthreatening contester. In a simplified sense you could sum up the strategies as Coke: old, Pepsi: new. The first magazine ad for coca-cola appeared in Munsey's in 1902. Soon there were serving trays with images of people enjoying Coca-cola and glasses with the cola's name on them. At this time Coca-cola and Pepsi were served in drugstore soda fountains. In 1934, he marketed Pepsi in a 12-ounce bottle for 5 cents. At that time, Coca-cola was sold in a 6-ounce bottle for 10 cents. Coca cola in comparison hit the airwaves in 1941. In 1946, inflation forced Pepsi to increase prices. In the 1970's market research showed that consumers preferred the taste of Pepsi over Coke, but Coke came up with probably the best ever of all cola commercials, the 1971 "I'd Like to Buy the World a Coke" ad. In 1985, responding to the pressure of the Pepsi challenge taste tests, which Pepsi always won, Coca-Cola decided to change its formula. Consumers angrily demanded that the old formula is to be returned, and Coca-Cola responded three months later with Classic Coke and eventually the new coke quietly disappeared.
The soft-drink battleground has now turned toward new overseas markets. While once the United States, Australia, Japan, and Western Europe were the dominant soft-drink markets, the growth has slowed down dramatically, but they are still important markets for Coca-Cola and Pepsi. The domestic cola war between Coca-Cola and Pepsi is still raging.
Often, the company that...
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