Essay: The Cola Industry

24 Aug

Essay: The Cola Industry

The cola industry in the 21st century is faced with the challenge of earning and maintaining loyalty of consumers globally. In the United States, both Coca Cola and Pepsi continue to intensify their marketing wars.

The cola industry is now developing international marketing strategies that will see the leading companies Coca Cola and Pepsi maintain the loyalty of their customers (Kleindl, 2006). Since the 1980s, the Coca-Cola Company and PepsiCo Inc. have engaged in marketing wars that have rocked the soft-drinks industry making other brands almost inexistent. Today, this war has escalated further after PepsiCo recently recruited Santa Claus, the symbol that Coca-Cola has used for more than eighty years, for its most recent U.S. advertising campaign (Roberts, 2011).

The company has also been forced to increase its marketing advertising by 30 percent in 2011 after it was beaten by Coca-Cola and Diet Coke; Coke recorded 1.6 billion sales and 927 sales of its regular soda and diet soda, respectively. Pepsi on the other hand had sold just 892 million cases. This is just one of the ways of how Coke has been a leader in the marketing wars, popularly known as the cola wars (AP, 2011).

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