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Coca Cola Vs Pepsi

In the 1950's, 1960's, and early 1970s, Coca cola outsold Pepsi two to one. But by the mid 1970's, Coca Cola dropped its sales from 13 percent to 2 percent annually. On the other hand, Pepsi market share increase from 6% to 14% because of its ad campaign of the "Pepsi Generation", and the comparative taste test. And then it increased again to 17.9 percent after coca-cola conducted its own taste tests.

Few advantages that coca cola has against Pepsi are it has twice as many vending machines, dominated fountains, more shelf space, and competitively priced. Although, Coca cola were outspending Pepsi in advertisement by $100 million, and it was not as effective as Pepsi's advertisement campaign of "Pepsi Generation".

During this down slope, Coca Cola chairman, J. Paul Austin


, retired and is replaced by Roberto Goizueta. And in late 1970's and early 1980's, Coca Cola introduced a new sweeter flavor of coke. It cost them $4million just for the taste testing. After they felt that the taste testing went well in favor of the new flavor, they took the original taste off the market. It resulted on angry customers, "Coke is an American symbol and as a long time friend that had suddenly betrayed them". Thus on July 1985, Coke brought back the original taste and pursued two-cola strategy by selling the new flavor in addition to the original one. By 1988, Coke had 40% of the domestic market of soft drink sellers to 31% for Pepsi.

On the other hand, Pepsi's "super-bottler", Baesa's CEO, Charles Beach, managed to increase market share in the Buenos Aires metro area from

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Approximate Word count = 534
Approximate Pages = 2 (250 words per page double spaced)


  

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