Name______

/25 points

Empires of the Industry

The Cola Wars

1.  Name/explain two successful marketing strategies used by Coca-Cola. (4 points)

a. changed formula several times-less cocaine, no cocaine, etc.

b. got names & addresses of best customers from soda fountain owners and sent coupons to them

c. advertised as a refreshment rather than a medical concoction

d. started bottling in addition to selling syrup to fountains

e. created a unique & distinctive bottle

f. created an easily identifiable logo and trademarked the name

g. WWI sugar ration-deemed Coca-Cola as a wartime necessity & supplied it to sugar camps, sugar ration not applicable to cokes sent to troops, Coca-Cola became the taste of home to the soldiers

2.  Name/explain two successful marketing strategies used by Pepsi-Cola. (4 points)

a. 12 oz. bottles for 5 cents vs. 6 oz. bottles for 5 cents

b. advertising of the nickel drink

c. board of CEO/managers running the company

d. created more flavors

e. TV ads using “necktie theory”-you can tell what type of person you are by the soda you drink-if you drink Pepsi you are a less traditional person

f. geared ad campaigns to WWII kids-ignored the WWII generation

g. Pepsi Challenge (blind taste test)

3.  Why was Pepsi’s strategy gearing advertisements towards the children of the WWII generation a good idea? (2 points)

Pepsi never would have been able to get the WWII generation drinking Pepsi because they were already attached to Coca-Cola because of the “taste of home” associated with the drink. Therefore, if they geared ad campaigns to the children of that generation they could invoke a psychological attachment to the drink for those people. WWII children didn’t already have a sentiment to Coca-Cola.

4.  Why did the “New” Coca-Cola formula fail? (2 points)

People, who drank Coke, drank it because it didn’t taste like Pepsi. They turned off the loyal customers they had rather than gaining new customers.

5.  Why do some people believe that the “New” Coke was a “successful” marketing ploy when it was actually a failed marketing strategy? (2 points)

When they returned to the original formula (Coca-Cola Classic), sales increased.

6.  Why did Pepsi believe that they had won the “Cola Wars”? (1 point)

Coca-Cola had essentially tried to replicate the taste of Pepsi. Therefore, that would make Pepsi the superior cola.

7.  Do you believe that businesses should stick to marketing strategies that have proven successful or try new strategies that may fail? . (4 points)

Answers will vary.

8.  Do you believe that people’s choice between Pepsi and Coke is because of taste preference or the psychological effects of the trademark? Explain your opinion. (4 points)

Answers will vary.

9.  If you had to choose, would you prefer to drink a can of Pepsi or Coke? Why? (2 points)

Answers will vary.