'Cola Wars' is the term used to describe the campaign of mutually-targeted television advertisements and marketing campaigns in the
1980s and
1990s between soft drink manufacturers
Coca-Cola and
Pepsi-Cola.
Competition
Pepsi and Coca-Cola had/have different brands of soda competing with each other:
Marketing campaigns
Coca-Cola and Pepsi focused particularly on
rock stars; notable
soft drink promoters included
Michael Jackson (for Pepsi) and
Paula Abdul (for
Diet Coke).
Coca-Cola
One example of a heated exchange that occurred during the Cola Wars was Coca-Cola making a strategic retreat on
July 11 1985, by announcing its plans to bring back the original 'Classic' Coke after recently introducing
New Coke.
Pepsi
Pepsi ads often focused on regular people, particularly the young (and young-at-heart) and those in the future, choosing Pepsi over Coke, supporting Pepsi's
positioning as "The Choice of a New Generation." Pepsi began showing people doing
blind taste tests called Pepsi Challenge in which they preferred one product over the other, and then they began hiring more and more popular spokespersons to promote their products.
In the late-1990s, Pepsi launched its most successful long-term strategy of the Cola Wars,
Pepsi Stuff. Consumers were invited to "Drink Pepsi, Get Stuff" and collect Pepsi Points on billions of packages and cups. They could redeem the points for free, Pepsi lifestyle merchandise. After researching and testing the program for over two years to ensure that it resonated with consumers, Pepsi launched Pepsi Stuff, which was an instant success. Tens of millions of consumers participated. Pepsi outperformed Coke during the summer of the
Atlanta Olympics - held in Coke's hometown - where Coke was a lead sponsor of the Games. Due to its success, the program was expanded to include
Mountain Dew, and into Pepsi's international markets worldwide. The company continued to run the program for many years, continually innovating with new features each year.
[1]
The Pepsi Stuff promotion became the subject of a lawsuit. In one of the many commercials, Pepsi showed a young man in the cockpit of a
Harrier Jump Jet. Below ran the caption "Harrier Jet: 7 million Pepsi Points." There was a mechanism for buying additional Pepsi Points to complete a Pepsi Stuff order. John Leonard, of Seattle, Washington, sent in a Pepsi Stuff request with the minimum amount of points and a check for over $700,000US to make up for the extra points he needed. Pepsi did not accept the request and Leonard filed suit. The judgment was that a reasonable person viewing the commercial would realize that Pepsi was not, in fact, offering a Harrier Jet. In response to the suit, Pepsi added the words "Just Kidding" under the portion of the commercial featuring the jet as well as changing the "price" to 700 million Pepsi points (see
Leonard v. Pepsico, Inc.).
In 1986, Coca-Cola and Pepsi were launched into
space aboard the
Space Shuttle in order to conduct a taste test. The companies had to design special cans for use in
zero G conditions. The experiment was classified a
failure by the shuttle crew, primarily due to the lack of
refrigeration and
gravity. Coke would later return to space with an improved delivery system.
Second Cola War
During the
1990s, a "second cola war" was reported in the
United Kingdom. This time it was due to the launch of
Virgin Cola, as well as
Sainsbury's store brand
Classic Cola, which, unlike most store brand colas, was designed to look like a top product worthy of competition. For a few years both colas were competitive with Coca-Cola and Pepsi; at one point Coca-Cola even sued Sainsbury's claiming the design of the Classic Cola can was too similar to Coke's. However, today, both Virgin and Classic Cola are far behind the two major brands.
Popular Culture References
In 'Digression', a one-act play by
Gregory Levey, the lead characters discuss the cola wars in a conversation which includes the thought-provoking question, "What if Coke owned Pepsi?"
See also
★
The Coca-Cola Company
★
PepsiCo
Refrences
Notes
1. http://promomagazine.com/currentissue/marketing_pop_go_points/ PROMO Magazine
External links
★
Official corporate Website of the Coca-Cola Company
★
Official consumer Website of the Coca-Cola Company
★
Official corporate Website of PepsiCo
★
Official consumer Website of PepsiCo