Brand Awareness Of The Coca Cola Company Essay

973 Words Dec 8th, 2015 4 Pages
Brand awareness is the extent to which a brand is recognized by consumers, and creating brand awareness is one of the key steps in promoting a product such as soft drinks. The Coca-Cola Company (KO) and PepsiCo, Inc. (PEP), are dominant players in the soft drinks market. Both companies own several brands of liquid refreshments that generate more than $1 billion in revenues (Lin). Two companies also have similar products for example, Pepsi-cola and Coca-cola (coke). They taste basically the same and have similar price; for that reason, they can be considered as the perfect substitution for each other. However, the demand for coke is much higher than Pepsi. So, why is KO dominating the market? There is not a simple answer, but it is for sure KO has more loyal consumers. According to the definition, brand loyalty is where a person buys products from the same manufacturer repeatedly rather than from other suppliers (Thomas). As a result of brand loyalty, KO gets more market share, and some of KO’s branding strategies including advertisement, availability, and flexibility.
First of all, adverting is absolutely the most important part of the branding strategic. 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…

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