Guerilla Marketing in the Cola Industry
Today, the United States cola market is reportedly worth over $300 billion annually with each share point encompassing millions of dollars. The two major players in the beverage industry are Coca-Cola Co. and Pepsi-Cola Co.; each company is locked in combat with each other to vie for the loyalty of millions of American beverage drinkers. This “cola war” uses a constant bombardment of radio, magazine, newspaper, and television advertisements as its main weapon with a seemingly endless cache of advertising dollars as the ammunition. (3) With the two beverage behemoths throwing $309 million in 2001 and $272 million in 2002 into exposure time, an estimated total of $500 million seems only appropriate for 2003. (6)
According to Information Resources Inc., six out of the top 10 new pace-setting food and beverage products that “have gained critical mass since 2000 and have kept growing…were beverages”. (2) Four out of the six beverages were new soft drinks created by Coca-Cola and Pepsi-Cola. In the midst of a period of rapid innovation unlike any this country has ever seen, these two companies have had to keep up the pace for ingenuity for new flavors and also for the creation of n
Today, the United States cola market is reportedly worth over $300 billion annually with each share point encompassing millions of dollars. The two major players in the beverage industry are Coca-Cola Co. and Pepsi-Cola Co.; each company is locked in combat with each other to vie for the loyalty of millions of American beverage drinkers. This “cola war” uses a constant bombardment of radio, magazine, newspaper, and television advertisements as its main weapon with a seemingly endless cache of advertising dollars as the ammunition. (3) With the two beverage behemoths throwing $309 million in 2001 and $272 million in 2002 into exposure time, an estimated total of $500 million seems only appropriate for 2003. (6)
According to Information Resources Inc., six out of the top 10 new pace-setting food and beverage products that “have gained critical mass since 2000 and have kept growing…were beverages”. (2) Four out of the six beverages were new soft drinks created by Coca-Cola and Pepsi-Cola. In the midst of a period of rapid innovation unlike any this country has ever seen, these two companies have had to keep up the pace for ingenuity for new flavors and also for the creation of n
In one of the most expensive guerilla attacks yet in the cola wars, Pepsi-Cola Co. paid nearly $30 million to Texas Stadium, home of the National Football League team Dallas Cowboys, to oust Coca-Cola from Dallas. The 10-year agreement made in 1995 gave Pepsi exclusive soft-drink rights and broadcast and promotional rights in the stadium. This marked the start of Pepsi-Cola attempt to gain presence in the major professional sporting events traditionally dominated by Coca-Cola. Another move shows how Pepsi is attempting move in on pro sports; the company paid an estimated $68 million to rename the National Basketball Association’s Denver Nugget’s new arena to the Pepsi Center. (8) This tactic was made in hopes that nationally televised games would give the Pepsi-Cola Company hours of constant exposure time and also to link their beverages to professional sports and athletes.
Advertising efforts made to connect teens and young adults with a particular product was needed when the Pepsi-Cola Co. launched its new FruitWorks brand. Mainstream corporate America realized “that smaller [beverage] brands have started to do really well with marketing strategies that break away from the traditional approaches”. (11) The whole premise of teen advertisement focused on the fact that teens looked to separate themselves from the ordinary; this means that they do not react to “do the cool thing” form of advertisement. What is need is a “buzz”. This means that the product is not selling itself, but that teens are selling the product to other teens.
The Pepsi-Cola’s of today’s global market are in a constant search for new ways to advertise their products. The extent to which commercialism has been merged into the normal American is evident in the conglomerate of brands and logos adorned on our jeans, shirts, watches, and shoes. We are walking billboards and advertisements. This is the goal of marketers; they want every potential customer to become surrounded with their image. Pepsi has utilized every possible form of product exposure to reach the different demographics of U.S. consumers. Through athletes, to collegians, and to new teenage customers, Pepsi finds ways to adorn their red and blue l
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