Coca Cola vs Pepsi: Background

Topics: Coca-Cola, Pepsi, The Coca-Cola Company Pages: 5 (1918 words) Published: April 21, 2013
Research Proposal

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PROVISIONAL TITLE

|Coca Cola Vs Pepsi: how a competitive brand proliferation has determined their dominance in the global soft drink industry? |

BACKGROUND

| | |It is not a foreign notion that both Coca Cola and Pepsi have been competing with one another in the global soft drinks industry for many years. From the | |early stages, of both the drink brands development from 1910, when Pepsi took on Coca Cola in the American carbonated drinks market franchising 24 | |states[1]. Too the current day in which Coca Cola this year celebrated, 84 years of being the official sponsors of the Olympic Games. As well as Pepsi | |wining the bid for sponsorship of the Superbowl halftime show once more; with last year’s show being viewed by an estimated 114 million globally.[2] | | | |Their soda war has been raging for over a century. When Caleb Bradham created Pepsi in 1898, Coca Cola had already been incorporated for 6 years by Asa | |Candler who purchased John S Pembertons Coke recipe, and was selling a million gallons a year. By the time Pepsi had franchised 24 states; Coca Cola had | |established bottling plants in Cuba, Canada and Panama and understood the power of advertising. Ploughing large amounts of profits into marketing with | |D’Archy Advertising Company. Over the next 20 years Pepsi suffers two bankruptcies the first in 1923, the start of World War I (WWI). When government | |policies on sugar rationing left the company with no other viable option and Pepsi Cola was sold to Craven Holdings Corp. After two years the trademark | |went bust once again in 1931. Here though good fortune comes in the form of Loft Inc a candy store chain, with its intuitive president Charles G Guth; | |they initiate the first competitive pricing strategy between the two firms. Pepsi Cola introduced the 12 ounce bottle for 5 nickel in 1933. With profits | |rising Pepsi produces their first advertising campaign for radio and jukebox: ‘Pepsi Cola Hits The Spot, Twelve Full Ounces That’s A Lot, Twice As Much For| |A Nickel, Too, Pepsi Cola Is The Drink For You’. During this time Coca Cola has established bottling operations in Bordeaux, Paris, Philippines’ | |establishing a global distribution network of resources. Resulting in a huge group investment of $25 million persuaded by Ernest Woodruff who would become| |President of Coke in 1923. The investment spurs Coke to spread to Australia Norway and South Africa. | | | |By 1959 Coke is now a registered trademark under the name of The Coca Cola Company, their first ever television commercial has been advertised and the | |company’s distribution network crosses 100 countries and 1700 plants. From the 1940’s onwards Pepsi have learnt from previous events and at the beginning | |of World War II (WWII) purchase a sugar plantation in Cuba to avoid disruption to business. They have also developed their products container to a can, a | |more progressive and modern aversion from the traditional heavy glass bottle. By 1959 Pepsi was now available in a 120 countries; differentiating their | |target market the youth nicknamed the ‘sociables’. At this point, for the first time both Coca Cola and Pepsi Cola are equals. In the sense...
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