Coke or Pepsi
IT ALL STARTED . . . . Coca-Cola was invented and first marketed in 1886, followed by Pepsi in 1898. Coca-Cola was named after the coca leaves and kola nuts John Pemberton used to make it, and Pepsi after the beneficial effects its creator, Caleb Bradham, claimed it had on dyspepsia. For many years, Coca-Cola had the cola market cornered. Pepsi was a distant, nonthreatening contender. But as the market got more and more lucrative, professional advertising became more and more important. These soda companies have been leading the way in advertising ever since. In 1909, Pepsi used its first celebrity endorser, automobile race driver Barney Oldfield, in newspaper ads. In 1921, Pepsi went bankrupt, but continued to appear on the scene, although not nearly so successfully as Coca-Cola. In 1931, Pepsi went bankrupt again, but the new owner, Roy Megargel, would hit upon an idea that would finally give Coca-Cola some competition. In 1934, he marketed Pepsi in a 12-ounce bottle for a nickle. At the time, Coca-Cola was sold in a 6-ounce bottle for ten cents. Voila! Profits for Pepsi.
ADVERTISING HISTORY & COMMERCIALSPepsi has definitely leaned towards the appeal of celebrities, popular music, and young people in television commercials, while Coke relies more heavily on images of happiness and togetherness, tradition, and nationalism, perpetually trying to cash in on its original lead. In a simplified sense, you could sum up the strategies as Coke: Old, Pepsi: New. In fact, as we will see, when Coca-Cola tried something new, it was disaster. The first magazine ad for Coca-Cola appeared in Munsey's in 1902. Advertisements began to appear on billboards, newspapers, and streetcars. Soon there were serving trays with images of people enjoying Coca-Cola, and glasses with the cola's name on them. At this time, Coca-Cola and Pepsi were served in drugstore soda fountains.
In 1909, Pepsi used its first celebrity endorser, automobile race driver Barney Oldfield, in newspaper ads. In 1921, Pepsi went bankrupt, but continued to appear on the scene, although not nearly so successfully as Coca-Cola. In 1931, Pepsi went bankrupt again, but the new owner, Roy Megargel, would hit upon an idea that would finally give Coca-Cola some competition. In 1934, he marketed Pepsi in a 12-ounce bottle for a nickle. At the time, Coca-Cola was sold in a 6-ounce bottle for ten cents. Voila! Profits for Pepsi. Pepsi racked up another first by airing the first radio jingle in 1939. It was so popular that it was played in jukeboxes and became a hit record. Coca-Cola hit the airwaves in 1941. In 1946, inflation forced Pepsi to increase prices. And in 1950, Pepsi offered a larger 26-ounce bottle to court the young American housewife. In the 1960's, the cola ad wars moved to television. Coca-Cola employed a host of celebrity singers to promote the product, including Connie Francis , Tom Jones, The New Beats, Nancy Sinatra, and The Supremes. As we moved through the years, both colas incorporated some of their best slogans ("Pepsi Generation" and "the Real Thing") into subsequent commercials. In the 1970s, market research showed that consumers preferred the taste of Pepsi over Coke. The Pepsi Challenge is still being conducted today. But Coke came up with what is arguably the best of all cola commercials, the 1971 I'd Like to Buy the World a Coke ad. This landmark was recalled in Christmas versions in 1983 and 1984, and a 1990 Super Bowl ad, which was enough to make some Baby Boomers weep with nostalgia.
In the 1980's, Pepsi lined up the celebrities, starting with Michael Jackson, then Madonna, Michael J. Fox, Billy Crystal, Lionel Ritchie, Gloria Estefan, Joe Montana, and others. Coke signed on Michael Jordan, New Kids on the Block, Aretha Franklin, Elton John, and Paula Abdul. In 1985, responding to the pressure of the Pepsi Challenge taste tests, which Pepsi always won, Coca-Cola decided to change its formula. Bill Cosby was the pitchman. This move set off a shock wave across America. Consumers angrily demanded that the old formula be returned, and Coca-Cola responded three months later with Classic Coke. Eventually, New Coke quietly disappeared. Pepsi, meanwhile, had its own flop, Crystal Pepsi, which was supposed to catch the strange wave of the times when everything colorless was clean and desirable (Zima, bottled water). And then there was Pepsi Lite with the lemony flavor and one calorie, introduced in 1975. Remember that one? Apparently they didn't expect us to because later they gave us Pepsi One, using the same concept, but a completely different taste. And, extending the idea even further, we are now getting Pepsi Twist, a new product with a twist of lemon flavor. In 1991, Ray Charles sang, "You got the right one baby, uh-huh!" Also in the 1990s, Cindy Crawford and the Spice Girls pitched Pepsi. And then Pepsi aired commercials featuring the aggravating little girl (Hallie Eisenberg) with her troubling male voice. In the new century, both colas continue to battle it out on the television screen. And celebrities continue to be important promoters. Recently, Pepsi has had commercials by Bob Dole and Faith Hill, among others. SLOGANS It's clear in looking at the slogans over the years that Coke and Pepsi have very different targeting strategies. Coke is touting itself as the original, the authentic, and appealing to a sense of tradition, positioning itself as an integral part of daily American life. Pepsi, on the other hand, is promoting itself as something new, young, and hip, which seems a little odd after over 100 years. But Coke was first, after all. Pepsi has always targeted the youth market more aggressively than Coke.
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