Pepsi and Coke- Eric Yoshikawa- #1

One of the ways both of these companies have been able to evaluate their performance is with the "pepsi/coke challenge". They ask people randomly to try both coke and pepsi, neither of which are labeled. One of the goals with this is to establish who has more consumers. Regardless of the outcome it helps because if pepsi isn't selling as well as cola but people prefer the taste over coke, it's something that they can hit on for their advertising. If it's already selling more then coke and people don't prefer it over coke, they can advertise that it's the best selling brand. From their the managers can compare the actual performannce against the established targets. If pepsi were to decide that they are spending more time making the product faster versus variation in quality they would start by making it flawless in production. This would change the difference in taste from each batch to making them all the same. This would make it so that testing would be more universal with little variations. Also it would make it so the consumer more willing to buying the product if religiously it would be the same. Finally they'd do more with research and development and diversification. One example you see with pepsi is advertising mountain dew to a younger generation versus pepsi. One example is snowboading events, you see mountain dew ads everywhere and almost never see pepsi ads. This is just one of a few examples how pepsi as well as coca cola market themselves