COLA WARS: BIGGEST CORPORATE WAR IN HISTORY | COCA COLA VS PEPSI |

 COCA COLA VS. PEPSI

The Cola Wars refer to the long-time rivalry between soft drink producers The Coca-Cola Company and Pepsico  who have engaged in mutually-targeted marketing campaigns for the direct competition between each company's product lines, especially their flagship colas  , Coca-Cola and Pepsi. Beginning in the late 1970s and into the 1980s, the competition escalated, which gave this cultural phenomenon its current moniker of Cola Wars.

In 1886, John Stith Pemberton developed the original recipe for Coke. By 1888, control of the recipe was acquired by Asa Griggs Candler, who, in 1896, founded The Coca-Cola Company. Two years later, in 1898, Caleb Bradham renamed his “Brad’s Drink” to “Pepsi-Cola,” and formed the Pepsi-Cola Company in 1902, prompting the beginning of the Cola Wars. The two companies continued to introduce new and “modern” advertising techniques, such as Coke's first celebrity endorsement and 1915 contour bottle, until market instability following World War I forced Pepsi to declare bankruptcy in 1923. In 1931, Pepsi went bankrupt once more, but recovered and began selling its products at an affordable 5 cents per bottle, reigniting the Cola Wars through today.

LET US WITNESS SOME OF THE COLA WARS EVENTS

Pepsi Challenge

In 1975, Pepsi began showing advertisements based on the Pepsi Challenge, in which ordinary people were asked which product they preferred in blind taste tests.^[2] The study revealed that, when it came down to taste alone, consumers preferred Pepsi over Coca-Cola. This prompted Coca-Cola's creation of "Diet Coke," and later on, "New Coke," both of which led to a major shifting point in the Cola Wars.

 

"New Coke" 1985

During the peak of the Cola Wars, as Coca-Cola saw its flagship product losing market share to Pepsi as well as to Diet Coke and competitors products, the company considered a change to the beverage's formula and flavor. In April 1985, The Coca-Cola Company introduced its new formula for Coca-Cola, which became popularly known as "New Coke". Consumer backlash to the change led to the company making a strategic retreat on July 11, 1985, announcing its plans to bring back the previous formula under the name "Coca-Cola Classic".^[8] Some conspiracy theorists think the decision to replace the original flavor was actually a strategic masterstroke to bolster Coke sales once it came back on the market, which it did; however, the Coca-Cola Company vehemently denies the claim.

Drink Pepsi, Get Stuff

In the mid-1990s, Pepsi launched its most successful long-term strategy of the Cola Wars, Pepsi Stuff. Using the slogan "Drink Pepsi, Get Stuff", consumers could collect Pepsi Points on packages and cups which could be redeemed for free Pepsi merchandise. After researching and testing the program for over two years to ensure that it resonated with consumers, Pepsi launched Pepsi Stuff, which was an instant success. Due to its success, the program was expanded to include Mountain Dew and Pepsi's international markets worldwide. The company continued to run the program for many years, continually innovating with new features each year.

SHARE A COKE

Coca-Cola first introduced their "Share a Coke" campaign in Australia in 2011 changing the traditional design of their products to display "Share a Coke with:" and have names printed on each bottle or can. The idea behind the campaign was to create a more personal relationship with their customers.