Coke & Pepsi Aren't Really Rivals

October 17, 2018

For years there has been a supposed rivalry between Pepsi and Coca-Cola, but when Cheddar takes a deeper look at the brands' histories they don't appear to be rivals at all.

FULL TRANSCRIPT

FEMALE_1: [MUSIC] This is Pepsi's 1905 logo

FEMALE_1: and this is Coke's from the same time period.

FEMALE_1: Now watch them evolve.

FEMALE_1: Or in the case of Coke, stay the same.

FEMALE_1: This doesn't mean Pepsi is indecisive.

FEMALE_1: Instead, it's a clue that

FEMALE_1: the great soda rivalry is in

FEMALE_1: fact about something other than taste.

MALE_1: Oh [NOISE].

FEMALE_2: Pepsi has a weird metallic aftertaste.

MALE_1: Pepsi has a sharper taste and I think that

MALE_1: there combination of experts from different.

FEMALE_1: For years consumers have obsessed

FEMALE_1: over the smallest differences in taste.

FEMALE_1: The Pepsi Challenge was

FEMALE_1: a marketing campaign started in 1975.

FEMALE_1: It featured a blind tasting of Pepsi and Coke.

FEMALE_1: The results. [NOISE] More Americans preferred Pepsi.

FEMALE_1: But throughout their history,

FEMALE_1: Coke has held a firm grasp on the market.

FEMALE_1: So, why? Both brands are

FEMALE_1: courting entirely different consumers?

FEMALE_1: If we look closer at Pepsi's marketing,

FEMALE_1: it makes the case that this soda brand embraces change,

FEMALE_1: while Coke keeps itself

FEMALE_1: firmly entrenched in the classic past.

FEMALE_1: This is a leaked marketing documents by the Arnell Group.

FEMALE_1: The firm executed the highly controversial [NOISE]

FEMALE_1: $1 million Pepsi logo redesign in 2008.

FEMALE_1: This document called "Breathtaking",

FEMALE_1: recorded all that went into

FEMALE_1: designing the new Pepsi growth.

FEMALE_1: In it, the company explains its diverse inspiration.

FEMALE_1: The Hindu tradition of

FEMALE_1: numerical harmony as spatial

FEMALE_1: organized, the Vitruvian renaissance,

FEMALE_1: the elements of energy,

FEMALE_1: renata card legeometry, and

FEMALE_1: even the Earth's magnetic fields.

FEMALE_1: [MUSIC] At first, the media was all over it,

FEMALE_1: but the soda has seen steady sales since.

FEMALE_1: Rebranding is core to Pepsi.

FEMALE_1: Change is part of its DNA,

FEMALE_1: and it's part of what makes the company so successful.

FEMALE_3: [MUSIC] It's always exciting.

FEMALE_3: It's innovative.

FEMALE_3: And innovation is a part of its basic brand personality.

FEMALE_3: That is what it's selling.

FEMALE_3: It's selling excitement, warm, young.

FEMALE_3: And therefore, it needs to

FEMALE_3: change to be authentic to its brand.

FEMALE_3: In the case of Coke, it is wholesomeness,

FEMALE_3: America, joy, very down to earth kind of an appeal.

FEMALE_1: This central difference is

FEMALE_1: manifested in the brands mascot's.

FEMALE_1: Coke is Santa Claus and polar bears.

FEMALE_1: Pepsi is Michael Jackson,

FEMALE_1: Britney Spears, and who could forget, Kendall Jenner.

FEMALE_3: Pepsi's brand essence involves change,

FEMALE_3: therefore it must change.

FEMALE_3: And that change, I don't

FEMALE_3: think it's necessarily a negative,

FEMALE_3: since that is very much a part of it's persona.

FEMALE_1: Coke tried to change ones.

MALE_2: Introducing the new taste of Coca-Cola.

FEMALE_4: It doesn't have the dzas

FEMALE_4: that you need when you want a coke.

MALE_3: Very disappointed I think we've

MALE_3: lost the American tradition.

FEMALE_1: For Coke loyalists, it was a departure.

FEMALE_1: It signified a violation of

FEMALE_1: what drinkers had come to expect.

FEMALE_1: Sameness, consistency.

FEMALE_1: Coke found it was more important to keep

FEMALE_1: their existing customers happy rather than find new ones.

FEMALE_1: And that's the bigger picture here.

FEMALE_1: Coke isn't after Pepsi's customers, and vice versa.

FEMALE_1: And the public may perceive

FEMALE_1: a rivalry between the two brands,

FEMALE_1: when in reality the two seem to coexist quite peacefully.

FEMALE_1: Remember that logo that kept changing,

FEMALE_1: it's part of that very same strategy.

FEMALE_1: Pepsi has set its sights on a particular customer,

FEMALE_1: one that embraces change.

FEMALE_1: So, practically the opposite of Coke's target.

FEMALE_2: I would always go for a Coke or Pepsi because it's

FEMALE_2: just the classic thing that we always had growing up.

FEMALE_2: Like, we ordered pizza,

FEMALE_2: we had coke with it. It's classic.

FEMALE_1: Despite any notion that Coke

FEMALE_1: and Pepsi are one and the same,

FEMALE_1: they're courting a totally different soda drinker.

FEMALE_1: A 2016 study by

FEMALE_1: two Emory professors Jagdish Sheth and Anthony Koschmann,

FEMALE_1: showed that each brand has an unseenly loyal base.

FEMALE_1: Coke retained 94.4 percent of

FEMALE_1: its loyal households from one quarter to the next.

FEMALE_1: Pepsi kept 91 percent.

MALE_1: [NOISE] Feel like a traitor.

MALE_1: I feel like I've let down generations of

MALE_1: my ancestors by switching. I'm a wimp.

FEMALE_2: Now I feel silly for having

FEMALE_2: this undying loyalty to Coke almost,

FEMALE_2: now that I taste Pepsi.

FEMALE_2: But Coke is this where my brain goes when I'm like,

FEMALE_2: "Okay, it's time for a fizzy - fizzy bev."

FEMALE_1: Today, Pepsi and Coke market to

FEMALE_1: the soda drinker who matches what they stand for.

FEMALE_1: In other words, there is no rivalry.

FEMALE_1: [MUSIC]