EXPERIMENTAL RESEARCH

Experimental Research - Pepsi vs. Coke

Experimental Research - Pepsi vs. Coke

Introduction

Product tests on consumers are performed by companies for a variety of reasons. Most commonly, taste tests are used to test new product formulations, and engage in comparative advertising versus an entrenched competitor. The most infamous example of this use is the introduction of Coke in 1985 (Henderson, 1992). One of the best known examples of taste tests is the Coke-Pepsi taste test. In the 1970's Pepsi launched blind taste tests to show their product superiority. They found that the younger consumer liked the taste of Pepsi better than the taste of Coke - a finding that they spun into their famous “Pepsi Challenge” commercials. To respond to this campaign, Coke conducted its own blind taste tests and confirmed Pepsi's results. They decided to change their formulation. After conducting over 191,000 blind taste tests in 13 cities where they had consumers compare the taste of four new Coke formulations versus Pepsi and the original Coke formulation, they launched the New Coke - a marketing disaster, that was recalled in a couple of years (Lawrence, 1994).

Company Profile

Coca Cola

The Coca Cola Company was founded in 1886. Its headquarters is in Atlanta, Georgia with local operations in over 200 countries around the world. E. Neville Isdell is the Chairman and CEO. This centralized company is made of a Board of Directors, Executive Committee, Operating Group Leadership and Corporate Functional Leadership.

When companies try to expand into the international arena, there are certain problems that can occur. According to Alexander, 2000 site acquisitions is the weightiest issue. The problems of site acquisitions, which are recruitment and staffing, language, different competitive conditions, different consumer's tastes, and different social conditions, can be larger than what a company can imagine. The emphasis placed on social economic shows that companies are most concerned with what many describe as the underlying cultural environment. Findings like this suggest that locating suitable suppliers may prove problematic anywhere, as indeed may the acquisitions of useful marketing information, while problems associated with cultural differences will take on perhaps hitherto unrecognized significance. It is important for a company to remember that a success in the home market does not mean success in the international market. Companies should remember that people and countries around the world might be/are very different compared to their own home country (Dominick, 2006).

It is common knowledge that Coke and Pepsi are engaged in a battle for being the number one brand of cola drink. In order to make a comparison between the two drinks, it is very important to review the history of the two giant competitors. Coke invented in 1887, while Pepsi invented five years later. From its birth, Pepsi is considered to be more "healthy" than its rival. Coke, on the other hand, is considered to be a more “stronger” drink. Both the drinks are spread immensely in all parts of the world today. The competition between these two rivals considered to be the fiercest in the business industry ...