It has more than four times the market share of Coca-Cola's Powerade (via CNBC). The top brass at Coca-Cola didn't anticipate the ensuing backlash. Coke's branding has been about togetherness and sharing, from the iconic 1971 TV ad showing young people from around the globe singing, "I'd like to buy the world a Coke," to the famous Mean Joe Greene commercial and beyond. Soda sales in the U.S. peaked in 2004, and have been on the decline in Europe and other markets in recent years. Its weird. Despite all of Coke's apparent advantages, we take the unpopular stance that Pepsi is actually better than Coke. During a pandemic-ridden period, Pepsi's performance slipped from a year ago but still topped the analyst mark. Coke ran into a brick wall when it tried to go head-to-head with Mountain Dew. Meanwhile, Coke signaled "we're not really trying" with an animated Super Bowl commercial in 2019 with no stars – or human beings, for that matter – that rehashed the company's old "difference is good" message. Say what you will about Coke's dominance in soft drinks. This accounts for Pepsi's better performance in the stock market, according to The Street. Pepsi's best ad campaign – and arguably one of the most successful ad campaigns by anyone ever – was the Pepsi Challenge, launched in 1975 (via Business Insider). PepsiCo makes Mountain Dew, Gatorade, Lipton Tea, and Naked juice, among others. The underdog Pepsi called itself "The Choice of a New Generation" in the 1980s (via Business Insider). Pepsi is also characterized by a citrusy flavor burst, unlike the more raisiny-vanilla taste of Coke. So the original Original Coke – cocaine and all – can also claim a more colorful origin story. On the bottom line, adjusted earnings per share fell from $1.54 to $1.32, but topped expectations at $1.25. According to fellow Fool Ted Cooper , Coca-Cola commands more than 40% of the carbonated soda market in North America meaning it still maintains a huge ubiquitous advantage over … The response was so strongly negative that Coca-Cola announced within three months of New Coke's introduction that it would bring back the original. They launched New Coke and canned the old in 1985. However, its market leading position is possible because of the several sources of competitive advantage it has achieved. But truth be told, Coca-Cola has won the cola war. Coca-Cola's portfolio, on the other hand, is all beverages. PepsiCo's Gatorade is far and away the king of sports drinks. Pepsi's Diversified Revenue Stream Gives It an Advantage over Coke jacobwolinsky@gmail.com (Jacob Wolinsky)via The Motley Fool Jan. 22, 2013 Updated: Jan. 22, 2013 10:23 p.m. The price war between Pepsi and its competitors has been continual for decades. When Buzzfeed conducted a blind taste test of Coke and Pepsi, tasters had a hard time telling the difference. 2-Pepsi would not be interested in Coke's trade secrets because it … The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. Therefore, this realization with the study and implementation of Porter’s five forces model are key factors that give the competitive advantage to Coke over its only rival Pepsi. Coca-Cola is the largest beverage company in the world. In 2020, Coke went to the Super Bowl to plug its new energy drink with not-so-hip celebrities Jonah Hill and Martin Scorcese (via Daily Motion). In his book Blink: The Power of Thinking Without Thinking, published in 2005, Gladwell wrote that Pepsi is a sweeter beverage than Coke and had that initial advantage during taste tests.He also explained that Pepsi has a bit of a citrus flavor, which is quite different from Coke's vanilla-raisin flavor notes. Profits fell as COVID-19 led to additional expenses, and Pepsi's performance was challenged in beverages. Where Coca-Cola has a large chunk of revenues in Europe, Middle East, and Africa. Pepsi's products often outperform similar offerings from Coca-Cola. Laguarta noted the effect of "consumers spending more time at home, which benefits the at-home breakfast, snacking and dinner occasions.". Compared to Pepsi, Coke has a somewhat fuller taste, whereas Pepsi tastes relatively bland. Recently Coca-Cola has made a major investment to win over customers. Coke Vs. Pepsi: By The Numbers. Both companies have massive scale. 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