Link to video youtube/watch?v=vPjg5lBOcu8

2. Coca-Cola The Real Story Behind The Real Thing CNBC Video Link to video http://www.youtube.com/watch?v=vPjg5lBOcu8

3. Coca-Cola • The most recognizable brand in the World • There used to be just Coke and Pepsi. Now there are lots of choices. • Energy Drinks are really taking over • Coke has a secret research facility • The original formula is locked in a vault

4. Bottle Shape Coca-Cola • Impulse Buying – 50% of People tend to make their decisions for soft drinks in the first 5 seconds down the grocery store isle • Coke owns their unique “bottle shape”. That curved bottle is magical. • It has a look and a feel that is different than other bottles • When they changed their 2L bottle shape and it resulted in a million more sales

5. Brilliant Marketing Coca-Cola • Selling Good Times and Warm Feelings • People remember ads and they are stored in their minds for years. That influences their purchases throughout their lives. • Building up positive associations with their customers. A memory bank of positive memories. • Coke sponsors sporting events and winners of sport championships are often seen drinking coke after the game • Coke is great at inspiring emotions

6. Marketing Blunder of the Century Coca-Cola • In Nationwide, side by side, blind taste test comparisons, more people preferred the taste of Pepsi over Coca-Cola • Coke was the #1 selling soft drink but people did not like the taste as much as Pepsi • After Coke did its own taste tests with similar results it decided to change the 99 year old formulation

7. Marketing Blunder of the Century Coca-Cola • They introduced New Coke in 1985 • The backlash was immediate – people were REALLY upset • Lady said “You were playing around with my youth” • In less than 3 months, Coke returned to the original formula calling the product “Coca Cola Classic”

8. Coca-Cola Questions • Describe why coke has been so successful? • List 2 drinks people are choosing now instead of coke. Why are they drinking them instead? • Why was New coke, introduced in 1985, such a bad idea? • Why does coke sponsor sporting events?

9. Pepsi Challenge

10. Some short clips from the Pepsi Challenge to introduce this topic A Day in the Life of Pepsi CEO https://www.youtube.com/watch?v=VjsfqfJhgtA Are Snacks Bad For You https://www.youtube.com/watch?v=Fccv-9pez00 Pepsi’s New Challenge https://www.youtube.com/watch?v=iIm8cI6BjtI

11. Pepsi • Can PepsiCo create healthier products and continue to thrive as the largest snack food company in the world? • What do Diet Pepsi, Tropicana orange juice, Fritos corn chips, and Cap’n Crunch cereal have in common? • They’re among the more than one billion products purchased every day that are made by PepsiCo.

12. Finding New Ingredients for Healthier Products Pepsi • Small Army of Globetrotting Scientists • They are investigating a remote region in the Southwest corner of China • Study remote plants and vegetables for unique ingredients • They want to double the revenue of their nutrition business • Newest Product – Drinkable oats (fruit, skim milk and oats)

13. Focus Groups and Professional Testers Pepsi • Flavour scientists look for ways to reduce sugar and add taste • Focus Groups are asked questions about the “Smash Bar” (cereal, fruit, nuts and chocolate) • Professional Testers are trained to differentiate subtleties in taste • Trying to refine a new lemon/lime soda • They look at 26 Attributes • The testers did not like the aftertaste

14. Pepsi Product Placement • They put the drinks across from the chips • Drinks outsell chips 3:1 • They want to convince people to buy more chips • If Pepsi doesn’t sell, it will lose store space • Sell lots = get more store space

15. African American Market Pepsi • Pepsi created the first African American Sales Team • Wanted to target what was called at that time the “Negro Market” • African American schools and churches welcomed Pepsi • They developed Brand Loyalty by being willing to reach out to that community • In many ways the broke the color barrier in Corporate America

16. Pepsi • In November 2006 purchased Naked Juice as part of its continued focus on healthier products. • PepsiCo bought the SoBe line of drinks in October 2000 for $370 million, beating out Coca-Cola in the acquisition.

17. Pepsi rolls out new shape for 20-ounce bottle in April, first redesign since 1996 • Describe the new bottle shape. • What is the reason for the change? • Where will the new bottles first appear? Where will they be rolled out next? • Its current 20 ounce bottle made its debut in what year? What changes have occurred over the years since that date? Link to article http://news.yahoo.com/pepsi-rolls-shape-bottle-221025372.html

18. Website Comparison • Visit www.pepsi.com and Coke’s website • Compare their websites. • Describe each homepage • How do they market their products? • How are they the similar/different?

19. Bibliography • Lee, Melissa. Coca-Cola The Real Story Behind the Real Thing. CNBC video. Feb 9, 2010 • Holt, Lester. Pepsi Challenge. CNBC video. Nov 2011. • I Can’t Believe Its Pepsi – Unexpected Products. CNBC.com slideshow. • Compton, John. John Compton Explains Product Placement. CNBC video. Nov 21, 2011 • The associated press. Pepsi rolls out new shape for 20-ounce bottle in April, first redesign since 1996. Yahoo.com. March 21, 2013.