The beverage industry currently has a $257.30 billion 2023 projection with beverage companies making millions of dollars annually in sales revenue. The ultimate battle of the brands in this industry has to be between carbonated soft drink companies coca-cola company and PepsiCo. Competition from these two companies goes back decades, resulting in mixed success in dominating different markets using different products associated with the companies. Let us know ‘Why Is Coke More Popular Than Pepsi?’.
Each of these companies continues to lead in marketing and advertising campaigns in a bid to uphold their already established markets and drive up sales. It is estimated that coca-cola company made $38655 million in sales in 2021 while PepsiCo made $35753 in sales in the same year putting the companies in 3rd and 4th place respectively according to rankings by statista.com.
Although both companies were founded in the US in the late 1800s coca-cola has dominated the world market while Pepsi remains popular in different parts of the world. Through a marketing campaign, Pepsi put the ultimate taste competition offering customers two unlabeled drink options with one cup containing Coca-Cola’s coke and the other containing Pepsi-Cola’s Pepsi although the winner in this taste challenge was Pepsi coca-cola remains the ultimate winner in sales and market dominance.
Why Is Coke More Popular Than Pepsi?
Even without going back in history to show why coca-cola dominates in sales the simple answer is advertising. The company spends billions of dollars annually in marketing campaigns such as TV, print and recently on social media ads on YouTube, Instagram and TikTok; they’ve also started working with influencers on different social media platforms to capitalize on this new marketing strategy that seems to reach more people.
Coca-cola is also the most active beverage brand and offers some of the most lucrative sports sponsorship deals currently at 233 active deals across 21 sports. The company has sponsored events such as the world cup since 1978 and the 94 world Olympics such deals not only market the company in the host countries but also to millions of viewers and listeners following the events globally from different media
How coke entered the world market?
After the United States officially joined WWII in 1941, the then coca-cola company president Robert Woodruff ordered that every military personnel receive a bottle of coke for 5 cents regardless of their location. This action was aimed at not only showing support to the country but also to the troops and reminding them of home through the familiar taste of coke. U.S. Army General Dwight D. Eisenhower had seen the success of bottling plants and therefore asked the company to include bottling plants and materials needed to keep the drinks cool. Since military combat and food were more essential, coca-cola executives at the time responded by coming up with plans to open up bottling plants that made it easier and cheaper for the company to support the troops. Eventually, 64 bottling plants were opened resulting in the distribution of over 5 million bottles by the end of the war. This move resulted in Coca-Cola’s entry into the world market since the company’s bottling plants continued to be operational after the war. Pepsi, on the other hand, had faced hardships during WWI leaving the company bankrupt in 1923 and going through several investors, a move that destabilized the company and allowed the coca-cola company to grow until the 1950s when PepsiCo reentered the market under Loft candy co.
Why Coke remains the most popular soft drink globally?
- Over the decades coca-cola company has ventured into producing more carbonated soft drinks such as Fanta and Sprite, bottling their water such as Dasani and getting into partnerships with other companies such as the Coca-cola company partnership with Monster Beverage Corp to produce a line of energy drinks this has allowed the company to not only diversify their product catalogue but also keep up with competition from different companies.
- Coca-cola company has set the standards of advertising and made a notable cultural impact through its marketing strategy. Although the company continues to produce millions of sales globally it still sets aside billions of dollars annually for advertising. In 2022 it is estimated that the company spent between $4.6 to 4.7 billion on advertising its brands globally. Such intentional spending is done to increase brand awareness, introduce new products into the market and eventually drive up sales.
Pepsi’s market dominance and how the company still manages to stay in direct competition with coke?
Bottled and distributed by PepsiCo, Pepsi is a carbonated soft drink that is the direct competitor to Coca-Cola’s coke. Unfortunately for Pepsi it has not enjoyed the same global market popularity compared to coke but does make enough sales to be the second biggest carbonated soft drink company globally.
In countries where Pepsi is the most popular carbonated soft drink it does manage to significantly dilute Coke market share, Pepsi is popular in the following countries and regions; India, Oman, Saudi Arabia, Pakistan, Dominican Republic, Guatemala, the United States and various Canadian provinces such as Quebec, Prince Edward Island and northern Ontario.
Pepsi is the official sponsor of sports leagues such as the NFL, NHL and NBA. Such sponsorship deals act as part of Pepsi’s advertising and marketing strategy since millions of viewers, especially in the United States, follow teams in these sports.
Although the cola wars are long over the companies have both come up with intentional spending budgets on their marketing ads to ensure they each retain their markets. Along with this competitiveness, both Pepsi and coke have come to coexist over the years, as seen in 2006 when a man claimed to have coca-cola company restricted and confidential company documents that included coke’s formula and wanted to sell them to Pepsi. Pepsi in turn notified coca-cola of the breach working with the FBI to catch the perpetrators. This showed a level of competition based on fairness, the value of each company’s brand and justice.