The Pepsi Challenge, Deception or Perception?

Essay by RNunes9864University, Bachelor'sA+, May 2006

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Competition can be described as a rivalry between two or more businesses striving for the same customer or market. Rivalries in the business sector are no surprise to the American consumer. Chevrolet & Ford, Microsoft & Apple, and of course Coca-Cola and Pepsi are some of the major rivalries that have manifested themselves in our economy. This competition is similar to a pendulum, as one business gains market share, the other seeks ways to gain back what they have lost. This swinging of the pendulum is created by the consumer and whatever choices we make in the spending of our hard earned dollars. These choices we make are driven by a variety of issues that are constantly "suggesting" what we buy. Media and advertisement are by far the major driving factors in a large percentage of what we choose to purchase.

There is little doubt that the most spirited and intense competition in the beverage world is between Coca-Cola and Pepsi.

These two American companies long ago took their battle worldwide, and although there are other colas in the market, these giants occupy this high-stakes arena by themselves. The impact of Coke and Pepsi on popular culture is indisputable, our senses are constantly bombarded with messages on which brand to choose. Coca-Cola and Pepsi are the major players in soft drink advertisement and are always looking to add to market share, control of consumer purchasing is the key issue in all their advertisements. Just how this is done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share. The creativity and effectiveness of each company's marketing strategy will ultimately determine the winner with respect to sales, profits, and customer loyalty.