The Pepsi Challenge and what your brand needs to learn ! In 1975, Pepsi realized that they had an edge over Coke. They had just discovered something huge and thus launched a nationwide marketing campaign where people (blind test) tasted both the Colas and the results were heavily in favour of Pepsi. Coca Cola panicked and launched a new flavour “New Coke”. This was an even bigger failure as the people who used to love the original flavour of Coke felt cheated and this led to further decline in market shared of Coke.

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So why did this happen? Did people actually prefer Pepsi over Coke or was there something else to it? The fact is that both are Colas with a slight difference in taste. Pepsi is a bit more sweeter and most of the people prefer sweets. But here is the catch, people like sweets but not in large quantities. Coke was preferred in large quantities. Pepsi challenge was just about a sip and thus they were able to swing the votes in their favour !

 

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Smart marketing understands where their brand has an edge over competition and uses that to capture the market! Invest more time in discovering this part before you jump to the next marketing campaign P.S – Coke eventually recovered, but that’s a different story.

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