As part of the Advertising & Branding module we’re to investigate a subject of choosing, initially I was leaning towards product placement in mass media but quickly realised how vast this aspect of Advertising is so instead I’ve chosen to focus on the marketing strategies of Coca Cola as the main subject as well as looking at its main competitor Pepsi, after touching on the subject very briefly in a previous blog post I found it very interesting considering they are basically the exact same product but are both sold to us and stand for very different things, which means that everything is down to how they market themselves, and they choose to do this by making themselves lifestyle products.
After a stint of research, including a look at each products website (where the difference in values is very obvious) it seems that the resounding opinion is that Pepsi appeals to the younger generation, is in touch with pop culture and is very much current, at the moment it’s the sponsor of US XFactor ensuring that each ‘judge’ on the program has a strategically placed Pepsi glass in front of them (logo to the front of course), with the ratings Xfactor generates, the Pepsi collaboration is marketing gold. Coca Cola on the other hand, stands for tradition, it seems to have always been here, is served everywhere and has, in my eyes, ‘claimed’ events such as a visit to the Cinema (‘Still time to grab a Coke’), Saturday nights (‘Saturdays taste better with Coke’) and the biggie, Christmas. I’m sure a large chunk of my generation still feel a nostalgic carbonated infused surge of excitement when the ‘Holidays are coming, Always Coca Cola’ advert starts up on television.
In the middle of these two paragraphs I found myself venturing down 8 flights of stairs, into the rain, up the road to the local shop, and back up just to buy a bottle of Coke. After researching through numerous websites, case studies and marketing strategy books I’ve managed to resist the urge to drink Coke but it seems to be in the back of my mind throughout. The infamous click, psst and crackle of a freshly opened bottle of Coke is hard to resist, why? very clever marketing, it’s been used in nearly every TV ad and has powered its way into our minds of what refreshment sounds like, another claim from Coke, the sound of opening a bottle, their ‘Open Happiness’ tagline works well with this notion. Although Coke no longer contains actual cocaine, it is heavy on caffeine, which in large doses is medically proven to be addictive, this has lead to many cases of so called ‘Soda addiction’. The subject on whether you can be genuinely addicted to the soft drink or not is a popular argument, many disagree however I’ve stumbled across cases via blogs of ‘addicts’ weaning themselves off the product. See ‘Rehabilitation of a Coke addict’.
Although both companies started up around the same time (1890 – 1900) they’ve had very different routes to what they are known as today, Coca Cola was originally intended to be a medicine whereas the focus for Pepsi was to create a ‘delicious’ soft drink from the beginning. Both Pepsi & Coke have faithful followers in drinkers aswell as collectors as far as their advertising & products are concerned. Frederick Allan author of ‘Secret Formula’ describes Coca Colas market as
“… like a conveyer belt, a company official observed, with the obstetrician at one end and the undertaker at the other. The goal was to win customers when they were young and keep them for life.”
Products described range from Coca Cola needles to thermometers, and that’s just scratching the surface. There are avid collectors of the well recognised original poster advertisements that have that ‘Coke’ look – colourful, family orientated and complete with that very ‘American’ look (perfect white beaming smiles & preppy styles are rife) these are the first things that come to mind when thinking of their advertising.
To revisit the ‘Coke owns Christmas’ idea, there are numerous debates for and against the issue that Coke ‘invented’ the modern image of Santa Claus as a jolly, bearded old man in a red and white suit. The original artist of the first Coca Cola holiday advertisements in 1931 was Haddon Sundblom who although didn’t ‘invent’ Santa in a red and white suit, helped shape the image of the Father Christmas we know today, prior to this Santa had been depicted in many different styles, after being exposed to the ‘Coke’ Santa for so long, it’s hard to imagine him being depicted in any other way. According to ‘Coke Lore’
“Coca-Cola Santa has had a powerful, enduring quality that continues to resonate today. Many of the original paintings can be seen on display at World of Coca-Cola Atlanta or touring during the holiday season.”
Pepsi on the other-hand takes a whole different approach to their advertising campaigns and is very heavy on sponsorship deals, from events to individuals, past/present sponsor deals include FA Youth Football, Suzuki and the International Cricket Council then onto individual spokespersons which is where Pepsi really thrives in terms of being in touch with popular culture, Michael Jackson, Britney Spears and probably the most memorable for the UK, David Beckham have all had their names associated with the soft drink. Their original ad campaigns are very similar to that of Cokes, all American, ‘Mad men’ matched imagery, however in the last 20 years Pepsi co has established itself with its bang up to date, ever changing advertising campaigns which seem to fit into the mould of what’s happening at the time. As Coke holds onto its ‘classic’ roots but is starting to venture into current ad trends, Pepsi has long since claimed the ‘contemporary’ cola category.
According to a Daily Telegraph article I stumbled upon recently,
“Over the years the formula was tweaked so that Pepsi ads featured celebrities stressing the drink was the “The Choice of a New Generation”. By the 1990s the Pepsi strategy revolved around consumers being invited to “Drink Pepsi, Get Stuff” by collecting Pepsi Points on packages and cups which they could redeem for lifestyle merchandise. Millions took part and the Pepsi Stuff campaign was considered a huge success. ”
You can read the rest of the article here.
In the second part of this blog post I will focus on further marketing strategies by both companies, how they compete, the power of a logo as well as look at the effects clever product placement has had on each of the cola giants.
Resources used:
Pepsi Cola: Strategic Analysis
