KO and PEP have been rivals for years, which has resulted in high advertising costs for both companies. On average, PEP spends over $1 billion per year on advertising, whereas KO $2 billion per year. It is not hard to see why KO is dominating from the perspective of cost. Between 1993 and 2006 KO had spent $ 26.7 billion just on advertising, and it is one of the first companies ever to spend more money on marketing than on the product itself (Thomas) . In addition, KO has also sponsored many famous events and associations such as American Idol, NBA, NCAA, and the Olympic Games for same reason: strong advertising and marketing (Thomas). Social Media is also a great way for companies to interact with and advertise to their customers, and it is also an important piece of KO branding strategic (O 'Brien). For instance, KO has over 92 million followers on Facebook whereas PEP has about 34 millions. KO has always relied in advertising to promote and market their brand, and this is probably why they are always the best one among all the beverage companies on the Earth, and it is fair to say that it is not the product itself that made Coca Cola one of the most recognizable brands in the world; it is the exceptional marketing around it …show more content…
For example, the target market for Pepsi is usually younger generation, yet Coke is pretty much everyone. KO has shown greater flexibility and innovativeness than PEP, they adapted their drink to the various markets around the world and thereby achieved to satisfy the different tastes of the consumers (Thomas). Without a doubt, Coca-Cola become very well known all over the world, and Coke has definitely achieved a high level of loyalty. There is actually a rumor that says the second most recognized expression in the world after “ok” is “Coca-Cola.” In conclusion, brand loyalty is important especially for companies like KO and PEP. They are perfect substitute for each other. But, brand loyalty for Coke is stronger that is the reason lead to the KO’s dominance. There are of course many other factors that make KO dominant over PEP such as its pricing strategies, product design etc. However the most important parts for KO’ dominance are because of its mass advertisement, greater availability, and flexibility of product. Since its creation in 1886, it has become the most well-loved brands