Thursday, May 24th, 2012
PepsiCo and the Coca-Cola Company are the biggest soft drink manufacturers in the world. In terms of taste, look, and price, the two companies practically offer the same products. Because of this, marketing is a big factor in attracting consumers.
When it comes to traditional advertising and marketing campaigns, both companies spend just as much. In order for one to out market the other, it needs to have an edge in non-traditional advertising approaches.
Factoring Product Placement
Because Pepsi products and Coca-Cola products taste similarly, it boils down brand positioning?how do consumers view your products?
Soft drinks can be marketed as lifestyle products, especially for younger consumers. When teenagers see the product being consumed by celebrities and famous personalities, it creates a positive impact on brand perception. That is why brands get celebrity endorsers?both Pepsi and Coca-Cola have their own share of endorsers.
But, these days, it?s not that simple.
Consumers want their information fast and quick. When there are commercial breaks during their favorite shows, they usually change the channel, hoping to find more interesting things to watch.
Enter: product placement.
Product placement allows brands to participate in films, TV shows, and other media. If you recall Tom Cruise?s 1983 film ?Risky Business,? then you also remember the Ray-Ban shades that he wore.
A product placement will surely be absorbed by the consumer, while traditional TV spots have the tendency to be skipped by its watchers.
Entertainment?the best advertisement
Not only does product placement promote the product, it also puts it in a consumer-engaging marketing scene, like a blockbuster film or a renowned series.
Brands can take advantage of a blockbuster film by securing an appearance in it. One of the best examples is Volvo, which is now known as the SUV of choice of Edward Cullen, the renowned vampire in Stephenie Meyer?s Twilight series.
How PepsiCo and Coca-Cola manage their branded entertainment and product placement campaigns will be a key factor in their competition. It is particularly important, because they have similar products.
I grew up drinking Coca-Cola, RC and some Dr. Pepper (too long in Texas). I no longer drink any sodas unless they use pure cane sugar and NOT High Fructose Corn Syrup. If our soda companies were to return to using sugar I would purchase their products again. As it is, specialty sodas are my only choice…which isn’t very often any more.
I will NEVER let my kids drink any HFC-infused product. Neither should any other parent.
Yeah. Soft drinks have many health issues.
El product placement es la herramienta de marketing, la comunicación comercial y la técnica publicitaria del Siglo XXI.
[...] here to read the rest: Pepsi and Coke—the product placement difference | Product … Comments [...]
I am all for product placement as long as it does not diminish the integrity of the show.
Networks have become sloppy; when a show feels more like an infomercial it loses my interest.
Exactly. That’s why there needs to be formal rules around it.
The Ofcom in UK will not allow product placement for junk food. What about the U.S.? Do you guys think that the U.S. will follow this example?
There are less restrictions in the States, because product placements have been around there for a longer time.
[...] Product placement plays and important role for both Coke and Pepsi. [...]
[...] their difference in marketing approaches, Coke and Pepsi still enjoy a healthy rivalry. They were able to avoid the rut of the overlapping [...]