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Example research essay topic: Pepsi Vs Coca Cola Research - 1,603 words

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Pepsi vs. Coca Cola research paper Coca-Cola and Pepsi-Cola are considered to be one of the biggest companies in the world. Their marketing strategies differ though the history of their development has a lot of common features. The companies have represented a great number of new products and package types.

Most of all, they both have introduced a new stage in advertising. Coca-Cola, for example, has to change even its formula for Coke. Coca-Cola and Pepsi-Cola showed different strategies in prices and advertising. The changes in incomes as well as in exogenous variables affected companies greatly.

The companies had to use pure and mixed strategies to satisfy the growth of costs and demands. The firms observed the actions and information of their rivals and often they were able to anticipate their rival's actions. Those studies stimulated companies to work up new strategies in advertising their products as well as price strategies. It is for sure that there is a close connection between advertising and free markets. One of the fundamentals of a market economy is the free flow of information about goods and services offered for sale. (Mary L. , Azcuenaga) Coca-Cola and Pepsi-Cola based their strategies taking into account consumer preference. In different periods of time the both companies paid great attention to "appropriate to their own needs" (Mary L. , Azcuenaga).

It means that they direct their forces to regulate the prices on the products and the services according to the needs of customers. The companies specialists took into account political, social and cultural changes in the country. The role of advertising has not changed greatly since the end of 19 th century. But its place in our life has changed.

It once was peripheral; it's now unavoidably central (Mary O. Howard) At the end of 19 th century (when two companies started their business) great social changes influenced individual perception of the information. Postmodernists call this concept "social constructivism" and cognitive scientists call it "distributed cognition. " This concept is a key element in understanding how advertising works today. (Mary O. Howard) Though modern processes have reduced the emotional content of advertising and have narrowed it to presenting ones opinion. During the period of more then 100 years, Pepsi-Cola has been regarded as the company with one of the best advertising in the world.

Pepsi-Cola was invented by Bradham, a young pharmacist from New Bern, North Carolina, in 1893. It was a mixture of carbonated water, sugar, vanilla, rare oils and kola nuts. On August 28, 1898 the name Pepsi-Cola appeared. Later, in 1909, it was advertised at first by Barney Oldfield, an automobile racing pioneer. The famous man said to one newspaper, A bully drink refreshing, invigorating, a fine bracer before a race"; and since that time Pepsi-Cola has been mentioned as "Delicious and Healthful." But in 1920, Bradham made a mistake.

He bought large stocks of sugar but till 1921 the price dropped to a low. Financial losses of the company were great. It was the beginning of the Great Depression in America. Bradham tried to overcome difficulties. He borrowed money, sold assets but it did not work; and till the end of 20 s, only two plaints left. In 1931, the company was declared bankrupt and was bought by the giant candy company. 30 s were lucky for the company.

Its sales increased. The firm changed its strategy and started to sell a 12 -ounce bottle for five cents while its rivals did the same for six ounces. It was a great step that proved the cost savings in America at the time of the Depression. Before World War II, the company overcame the difficulties of the Depression, increased its prosperity and changed the owner. Pepsi-Cola was sold in a 12 -ounce bottle but from nickel. "Pepsi & Pete" cartoon strip appeared in a newspaper. It attracted a lot of consumers and gained the population as the brand with a lot of advantages. "Nickel, Nickel" became a hit record and well-known all over the world.

During World War II, the prices on sugar were unstable again; and the company decided to buy a sugar plantation in Cuba. In 50 s, Americans paid great attention to their health and weight. Pepsi-Cola established new strategy producing products with lower caloric content, "The Light Refreshment" campaign. Till the end of the period, the company has reviewed its policy as "the kitchen cola", and oriented its forces on satisfying the needs of young, fashionable consumers. It changed its image and replaced a former straight-sided bottle with a "swirl" bottle. Pepsi-Cola taking into account the increasing role of the new post-war generation. "Now It's Pepsi, For Those Who Think Young" became a new branch of the brand.

In 60 s there was a great demographic growth. It was the beginning of new generation the Pepsi Generation. But to belong to the Pepsi Generation meant not only to be young. Social and political changes influenced the movement. The Pepsi Generation emphasized that we are one people but with many personalities. Famous people such as Michael Jackson, Shaquille O'Neal, and the Spice Girls advertised the product.

The Pepsi-Generation was replaced by the Generation Next, and it was the beginning of long-term partnerships. Lucasfilm and Pepsi signed a contract about their partnership for the Star Wars films. At the same time it started various shows for its customers. One of them was a live television show on the WB. It was a chance for 1, 000 consumers to win $ 1 billion. All these measures have gained great popularity to the brand.

The other widely spread soft drink is Coca-Cola. The brand was born in 1889. John Stith Pemberton invented it as a mixture that benefits ones health. In 1889, the drink became popular and was named Coca-Cola taking into account its central ingredients: extracts of the coca leaves and kola nuts.

In 1891, a successful druggist and businessman Griggs Candler started to add Coca-Cola syrup to carbonated water at the soda fountain. It was the first great strategy developed by the company that was directed the market. In 1899, the rights to bottle Coca-Cola were reserved by Benjamin Franklin Thomas and Joseph Brown Whitehead in the United States. They took exclusive rights to other bottlers. Soon, the net of plants producing Coca-Colas bottles replaced one large parent producer. Coca-Colas enterprises were established in small and middle-sized towns.

It gave a great opportunity to citizens to get a good work and make their fortune thats why such cities became wealthier. In 1914, Coca-Cola Bottlers Association was formed in Atlanta. And in 1916, the company represented exactly new "hobble skirt" bottle. The bottle became well-known all over the world and it was the beginning of the great campaign of promoting the product. Since that time Coca-Cola brand was regarded as a unique and unforgettable thing - the "real thing." The company did not have great losses during the time of the Great Depression. Most of all, it expended its branches.

In 1930, the Coca-Cola Export Corporation was formed. During the World War II great business strategy was created by the company. It was based on patriotic gesture. The drink was sold for five cents to every American person who was on service.

Thanks to that strategy, Coca-Cola became more popular, and had to extend its infrastructure. After the end of the War, Coca-cola went to global market. Due to this, people in many countries in Africa, Asia and Europe knew a lot of about the company. The brand has always been closely associated with American culture.

Santa Clause with Coca Cola bottle became the symbol of Americana. Coca-cola has been regarded as the world's largest manufacturer, distributor, and marketer of nonalcoholic drink. Thats why it has created its image associated with American flag. Most of all, the company gave sponsorship to the arts and civic affairs. But as it was said, the popularity of Pepsi-Cola has been constantly increased among the youth. Coca-Cola had to create a new strategy.

It was decided to change the formula of its main brand. But the strategy was not successful. In the 1990 s, the company reestablished itself. It experimented with different new variants such as Diet, Cherry, and Vanilla Coke.

And for many years it has been regarded as the nonalcoholic beverage. It is the current corporate strategy. In 1990, the company opened the World of Coca-Cola museum in Atlanta. A modern historian Tom Standard in his work A History of the World in Six Glasses mentioned Coca-cola as one of six nonalcoholic drinks with beer, wine, spirits, coffee, and tea. He proves that the drink was a marker of different stages in world history.

The author shows that the brand changed with the industrialization in the twentieth century. It became the symbol of the globalization in United States business, and was an international symbol of freedom during the Cold War between Cuba and America. Pepsi-Cola and Coca-Cola did not simply react to changes in the world; they established their unique strategies and made the new environment to act in their favor. Bibliography: August, W. , Giebelhaus. Coca-Cola Company.

The New Georgia Encyclopedia. Georgia Institute of Technology. The University of Georgia Press, August 12, 2005. Golan, Amos.

Estimating Coke's and Pepsi's Price and Advertising Strategies. Journal of Business & Economic Statistics, October, 2000. Mary L. , Azcuenaga. The role of Advertising and advertising regulation in the free market. Turkish Association of Advertising Agencies.

Conference on Advertising for Economy and Democracy. Istanbul, Turkey, April 8, 1997. web Mary O. Howard Advertising's Role in Collective Cognition. University of Texas, Austin. web


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