Good morning class, for those who do not know us, My name is Allen Saylor and next to me is my colleague Ashley Just. We are here to talk about the Cola Wars between Pepsi and Coke. This battle has been going on for many years and will continue to raise issues in the eyes of marketers. Before we get into detail with our presentation how many here prefer coke over pepsi? On the other side of that how many prefer pepsi over coke?
The 2004 superbowl was held in Reliant stadium, home of the Houston Texans. When pepsi outbid Coke for the official sponsor in 2002 a major dilemma was upon the hands of marketers and advertisers such as Jill Smith the marketing executive on the Coca-Cola Classic brand. If coke wanted to promote any activity, it would be viewed by the NFL and pepsi as ambush marketing. The offical cola sponosor of the Texans in Coca Cola and since the NFL is now offically sponsored by Pepsi, this caused a problem dealing with legal and ethical rights of ambush marketing. Ashley will go into greater detail of ambush marketing later on in the presentation.
Intro-Instead of marketing for one particular event, coke and pepsi are branching out and finding new ways to draw in more fans. Coke was not allowed to promote or run any promotions during the superbowl because it would be considered ambush marketing. Pepsi was the official sponsor at that time and had all rights to run advertisements and promtions.TV advertisements-According to ESPN.com, on 10 superbowl ads from 1998 til 2008 pepsi spent $142.8 million. Coke spent $30.5 million in ads for just two superbowls. Online advertisements- starting in 2010, pepsi has spent most of its marketing dollars towards the web. With its new “Pepsi Refresh project” pepsi had spent over $20 million dollars to help communities.On the other side of that, Coke has created “Football Town USA” which will help all levels of football whether that be youth the whole way up to the pros.
What we learned is that most companies are starting to direct their advertisement money towards online because its cheaper and becoming more effective. I was reading an article and the average commercial for a 30 second slot is 3 million dollars and most companies are less willing to spend all that money when the official sponsor is unclear to most fans. Most fans cant distinguish between an official sponsor and a non official sponsor.
‘Cola Wars’ Allen Saylor Ashley Just
Overview Jill Smith NFL and the Houston Texans Pepsi outbids Coke 2002 Ambush Marketing
Facts/Issues Coca-Cola Large expansion Highest control of soda market 44 percent Most popular beverage 18.6 percent market share $1.9 billion on marketing and advertising More growth each year 2006: $2.6 billion Pepsi-Cola Gatorade Soda market 31.8 percent $1.6 billion on marketing and advertising 2009: $2.8 billion Ranks second to Coke in market share 11.9 percent
Ambush Marketing What is ambush marketing? Types of ambush marketing Potential Consequences Is it ethical?
Video The following video contains ambush marketing http://www.youtube.com/watch?v=F3RQXua0w5U Enjoy!
Decisions To Be Made Allow Coke to promote? Ambush marketing “Safety Zone”
Alternate Course of Action TV advertisements Online advertisements Coke and “Football Town USA” Cola and music
References Adage: Pepsi to Promote Apple I Tunes giveaway during Superbowl. (2005). Mac Daily News. Retrieved 8 October 2010 from http://macdailynews.com/index.php/weblog/comments/adage_pepsi_to_promote_apple_itunes_giveaway_during_super_bowl/. FAQ: Advertising. (2010). The Coca-Cola Company. Retrieved 11 Ocotober 2010 from http://www.thecoca-colacompany.com/contactus/faq/advertising.html McKelvey, Steve M. (2006). Coca-cola vs. pepsico- a “super” battle for the cola wars. Sport Marketing Quarterly. Retrieved 30 September 2010. Pepsi Turns Ad Focus Online. (2009). ESPN NFL. Retrieved 12 October 2010 from http://sports.espn.go.com/nfl/news/story?id=4751415