NONE Case Study Example | Topics and Well Written Essays - 500 words - 1

NONE - Case Study ExampleIn 1970, Pepsi bottlers had attained a larger market share than degree centigrade. Pepsi concentrated on spending additional income from sales on promotional material and advertising by selling its products at a lower price than Coke (Yoffie and Kim 100).Both Coke and Pepsi started experimenting with revolutionary cola as well as non-cola flavors by offering new packaging. They also alter into non-CSD industries. In its efforts to fight with Pepsi, Coke introduced advertising messages aimed at recognizing the prevalence of its rivals. It also focused on increase its share to overseas markets based on the assumption that the local CSD consumption was approaching full capacity. To contend this matter, Pepsi fought Coke aggressively in the U.S. where it doubled its market share (Yoffie and Kim 101).Since Coke was the dominant brand in the U.S. in 1974, Pepsi introduced the Pepsi Challenge, which aimed at demonstrating that clients preferred Pepsi to Coke. A fter realizing increased sales, it launched the campaign nationwide. To counter this move, Coke introduced rebates, cuts on sell prices, and advertisements aimed at questioning the validity of Pepsis test. It introduced price discounts at the retail level where Coke bottlers that were party owned fought against self-regulating Pepsi bottlers. Nevertheless, the Pepsi Challenge campaign significantly eroded market share for Coke (Yoffie and Kim 101).As the cola wars heated up in 1980, Coke started using a high-fructose corn syrup as an alternative to sugar, since it was cheap. After three years, Pepsi followed suit. Coke boosted its marketing efforts by doubling its expenditure on advertising. To resolve to this, Pepsi also doubled its spending on advertising. In 1985, Coke announced it changed its Coca-Cola formula. However, Pepsi stipulated that Coke had mimicked its taste in the formula, forcing Coke to revert to its original formula (Yoffie and Kim