I thought the best example I could use would be Coca Cola versus Pepsi because these two brands are very popular and lets face it, soda is a lot more fun to talk about than some other company that you've never heard of. So don't stop here, keep on reading....
When it comes soda everyone has a type, and the two main brands that divide people would be Coke Cola and Pepsi. These two brands are very big competitors and probably always will be. These two companies have now had a 100-year “Cola War” between each other according to a case study war from an article titled “Coke vs. Pepsi Cola Wars.” Starting out Coke definitely had a lead in the market share with 80% versus Pepsi who only had a 20% market share, as these two were the main competitors with each other in the market. Not very shocking, but maybe thats because I favor Coca Cola, anyways, you can see how Pepsi might find this as a threat, Coca Cola is at a much higher market share than Pepsi.
My first example will be competition because Pepsi doesn't care about the relationship it has with Coca Cola, all Pepsi cares about is being assertive and getting ahead. As these two companies continue to compete with each other in the same market share, Pepsi needed to step it up, the best idea on how to do that? A target audience. Targeting to a specific audience can increase sales and help them within the market share to be more successful. Pepsi decided to target their marketing towards young African Americans, which was a great idea on their part, since that’s a big demographic. Also Pepsi branched out from just selling at typical drug stores and started selling their product in other distribution channels. Pepsi then made another great move while competing against Coke by improving their taste, because even though Pepsi can continue to market and advertise more than Coke, it really falls on the taste of the product.
When Pepsi came out with the televised blind-tasting challenge called the “Pepsi Challenge,” their sales definitely went up. A person who preferred Coke would be blindfolded and then would drink two different types of Cola, and the results were that most Coke drinkers actually preferred the taste of Pepsi better. Of course Coke had to come back at their competitors with their strategy, thus launching “New Coke,” which was unsuccessful. Although Pepsi has great marking and advertising skills, Coke still remains in the lead to this day with Pepsi trailing right behind. These two companies will always have competition between each other and will constantly be creating new strategies to get either get in the lead or stay in the lead.
But what if both companies came together and joined the two delicious drinks into one and turned into a huge company? This would be collaboration, because then the two companies (or now one big company) would both have what they want, which is being number one. Coca would remain number one and Pepsi would no longer have to trail behind and be number two. Although, lets face it this will probably never happen because competing is way more fun.
Now, if Pepsi wanted to they ask Coca Cola to stop doing any marketing, such as commercials, or any advertising in general so all anyone would see is Pepsi products. If Coca Cola actually agreed to this, and once again I can pretty guarantee this would never happen, this would be accommodation. Coca Cola would be agreeing to what Pepsi wants and since Coca Cola has a pretty significant lead versus Pepsi, this wouldn't be so important to Coca Cola, but the importance of this for Pepsi would be much greater.
If Pepsi just asked Coca Cola to stop advertising towards...lets say children and then Coca Cola asked Pepsi to then stop advertising towards teenagers (just a reminder I'm making this up and they dont actually target these specific groups). This would be an example of compromise because even though these companies most likely don't want to stop advertising toward these specific groups, they do anyway and in the long run its only a small effect on the company. Both parties can go and continue working on their own business happily knowing that they reached an agreement.
And for the last example, avoidance....well I'll just avoid giving an example at all. (see what I did there?)
As for me, even though I love the ideas these companies produce it really does come down to taste, and Pepsi, you have great marketing strategies but Coke Cola will always be my number one.
Article Used:
http://www.scientificstrategy.com/marketmodel/portfolio/cola-wars/
Picture:
http://society6.com/abelfdez/pepsi-vs-coca-cola
When it comes soda everyone has a type, and the two main brands that divide people would be Coke Cola and Pepsi. These two brands are very big competitors and probably always will be. These two companies have now had a 100-year “Cola War” between each other according to a case study war from an article titled “Coke vs. Pepsi Cola Wars.” Starting out Coke definitely had a lead in the market share with 80% versus Pepsi who only had a 20% market share, as these two were the main competitors with each other in the market. Not very shocking, but maybe thats because I favor Coca Cola, anyways, you can see how Pepsi might find this as a threat, Coca Cola is at a much higher market share than Pepsi.
My first example will be competition because Pepsi doesn't care about the relationship it has with Coca Cola, all Pepsi cares about is being assertive and getting ahead. As these two companies continue to compete with each other in the same market share, Pepsi needed to step it up, the best idea on how to do that? A target audience. Targeting to a specific audience can increase sales and help them within the market share to be more successful. Pepsi decided to target their marketing towards young African Americans, which was a great idea on their part, since that’s a big demographic. Also Pepsi branched out from just selling at typical drug stores and started selling their product in other distribution channels. Pepsi then made another great move while competing against Coke by improving their taste, because even though Pepsi can continue to market and advertise more than Coke, it really falls on the taste of the product.
When Pepsi came out with the televised blind-tasting challenge called the “Pepsi Challenge,” their sales definitely went up. A person who preferred Coke would be blindfolded and then would drink two different types of Cola, and the results were that most Coke drinkers actually preferred the taste of Pepsi better. Of course Coke had to come back at their competitors with their strategy, thus launching “New Coke,” which was unsuccessful. Although Pepsi has great marking and advertising skills, Coke still remains in the lead to this day with Pepsi trailing right behind. These two companies will always have competition between each other and will constantly be creating new strategies to get either get in the lead or stay in the lead.
But what if both companies came together and joined the two delicious drinks into one and turned into a huge company? This would be collaboration, because then the two companies (or now one big company) would both have what they want, which is being number one. Coca would remain number one and Pepsi would no longer have to trail behind and be number two. Although, lets face it this will probably never happen because competing is way more fun.
Now, if Pepsi wanted to they ask Coca Cola to stop doing any marketing, such as commercials, or any advertising in general so all anyone would see is Pepsi products. If Coca Cola actually agreed to this, and once again I can pretty guarantee this would never happen, this would be accommodation. Coca Cola would be agreeing to what Pepsi wants and since Coca Cola has a pretty significant lead versus Pepsi, this wouldn't be so important to Coca Cola, but the importance of this for Pepsi would be much greater.
If Pepsi just asked Coca Cola to stop advertising towards...lets say children and then Coca Cola asked Pepsi to then stop advertising towards teenagers (just a reminder I'm making this up and they dont actually target these specific groups). This would be an example of compromise because even though these companies most likely don't want to stop advertising toward these specific groups, they do anyway and in the long run its only a small effect on the company. Both parties can go and continue working on their own business happily knowing that they reached an agreement.
And for the last example, avoidance....well I'll just avoid giving an example at all. (see what I did there?)
As for me, even though I love the ideas these companies produce it really does come down to taste, and Pepsi, you have great marketing strategies but Coke Cola will always be my number one.
Article Used:
http://www.scientificstrategy.com/marketmodel/portfolio/cola-wars/
Picture:
http://society6.com/abelfdez/pepsi-vs-coca-cola