senior project research paper laura mcgaha

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McGaha 1 Laura McGaha Ms. Bennett British Literature 7 September 2011 Coke or Pepsi: The Great Debate Have you ever wanted to enjoy the refreshing taste of a soda, but always got stumped on the thought of having either the delicious taste of Coca-Cola or the sweet, sugary taste of PepsiCo? For years there has been a constant battle between these sodas. Someone can either choose to have a cool, classic Coca- Cola, or the new and modern taste of Pepsi. Either one has something that is certainly unique and could spark any taste bud. Although Coca-Cola is infamous and was invented long before PepsiCo, Pepsi has worked its way up through the soda charts making huge competition for Coke. These two companies are neck and neck just fighting for one to surpass the other. As the two leading companies in the soda industry, Coca-Cola and PepsiCo have many unique qualities, but they are also very similar in many ways.

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Page 1: Senior Project Research Paper Laura McGaha

McGaha 1

Laura McGaha

Ms. Bennett

British Literature

7 September 2011

Coke or Pepsi: The Great Debate

Have you ever wanted to enjoy the refreshing taste of a soda, but always got stumped on

the thought of having either the delicious taste of Coca-Cola or the sweet, sugary taste of

PepsiCo? For years there has been a constant battle between these sodas. Someone can either

choose to have a cool, classic Coca-Cola, or the new and modern taste of Pepsi. Either one has

something that is certainly unique and could spark any taste bud. Although Coca-Cola is

infamous and was invented long before PepsiCo, Pepsi has worked its way up through the soda

charts making huge competition for Coke. These two companies are neck and neck just fighting

for one to surpass the other. As the two leading companies in the soda industry, Coca-Cola and

PepsiCo have many unique qualities, but they are also very similar in many ways.

The infamous Coca-Cola was created in 1886 by a curious Atlanta pharmacist named Dr.

John S. Pemberton. He created special flavored syrup and added carbonated water to it in his

pharmacy. What Dr. Pemberton did not know was that he just created the most successful and

popular carbonated soda ever invented. Unfortunately, Pemberton died a short two years after

creating Coca-Cola, but before he passed, he sold portions of his company to various Atlanta

businessmen. The man who expanded Coke was one of these businessmen, Asa G. Candler, who

broadened the product beyond Atlanta and dreamed about making Coke portable. He placed the

first Coca-Cola bottle dispenser in Mississippi behind one of his soda fountains. It was not until

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three entrepreneurs, Benjamin Thomas, Joseph Whitehead, and John Lupton, bought the bottling

rights from Candler that what is now the Coca-Cola worldwide bottling system. These men

decided to make their bottle stand out from all the rest; therefore, making the bottle to have a

unique shape and a dark color. In 1887, with Coca-Cola rapidly growing, the first marketing

technique came out when Coke suppliers handed out coupons to sample a free Coke. Soon after,

commercials and songs were produced to increase popularity. Previous Coca-Cola slogans have

gone down in marketing history, and are still in the making. From the first coupon handed out to

receive a free Coke, to the commercials about “Open Happiness” (The Coca-Cola Company),

Coke is a large flame waiting to burn down the competition.

Like Coca-Cola, PepsiCo’s inventor was also a pharmacist. In 1898, a man by the name

of Caleb Bradham started experimenting with new spices, juices, and syrups. He wanted to

invent a delicious drink to refresh his customers. He accomplished his goal, and PepsiCo was

born. At first, PepsiCo was named “Brad’s Drink” because he only served it in his drugstore,

making it unique to anyone who tasted it. Since his drink became popular so quickly, by 1902,

Bradham launched The PepsiCo Company in the back room of his pharmacy. He finally got his

drink patent in June of 1903, and began expanding his company. By the end of 1903, he allowed

two independent companies in North Carolina to invest in PepsiCo. Four years later, there were

forty franchises that were a part of the rapidly growing soda. With 1910 coming to an end, there

were PepsiCo franchises in 24 states, selling over 100,000 gallons of syrup per year. This drink

went from being sold in a small drugstore to being an enormous company within about eight

years. Unfortunately, because of the money situation during World War I, Bradham had to sell

his company’s trademark to a New York stockbroker named Roy C. Megargel. Megargel

decided to sell the company to the most important owner, Charles G. Guth. Guth saw the

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company as a great investment and a possible threat to the Coca-Cola Company. Under his

control, The PepsiCo Company brought the heat and became a worldwide sensation. Within a

year, and even during the Great Depression, Pepsi gained over one million and was rapidly

rising. Pepsi’s marketing varied from the general public, all the way to the armies across the

world. Songs, commercials, posters, and more were just a fraction of what Pepsi’s marketing had

to offer. This company started off slow during a hard time, but it came to be one of the leading

soda companies in the industry.

The Coca-Cola Company and The PepsiCo Company both spend tens of millions of

dollars on marketing alone. The largest form of advertising for the companies is the World Wide

Web. Both Coke and Pepsi lean toward demographic advertising, which is focusing on a select

group, such as age, gender, country, etc., to sell their product to that group. They gather the

demographic information by having e-mail based newsletters that customers can sign up for on

the company’s home website. Before someone can receive any e-mail, the company has them fill

out a form asking for their name, gender, interests, location, and so on. After they collect enough

data, the company uses that information to advertise to a certain group throughout any media

means. Both Coca-Cola and PepsiCo strive to have tight customer/company relationships. They

try to get as close to the customer as possible to gain a sense of respect and loyalty. In other

words, both companies use emotion to grab hold of their customers. Coke’s slogan today is

“Open Happiness” (The Coca-Cola Company). This slogan is implying that if a person has a

Coca-Cola, then they will be internally happy and pleased with life. Pepsi’s slogan is “Refresh

Everything” (The PepsiCo Company). They are stating that if someone wants to enjoy a Pepsi,

then the drink will refresh their body and ultimately feel better. Both of these slogans are

appealing to the sense of emotion. Each drink is different in its own way, but each has many

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factors that no average soda drinker can tell apart.

“The nagging question, ‘which is better, Coca-Cola or Pepsi-Cola?’ sprang from an

earlier, more basic question: ‘Can anyone tell the difference?’” (Cellania). Yes, Coca-Cola and

PepsiCo are two completely different companies, but they have so many obvious similarities.

Both are similar when it comes to appearance, taste, marketing, and more. In 1948, a professor

from the University of Wichita by the name of Nicholas H. Pronko conducted an experiment to

test the tastes between Coke and Pepsi. He gathered together 108 college students to do a series

of taste tasting of the two products. It turns out that the students could not identify the different

taste between each drink. Not only is the taste similar, minus a few ingredients, but the

appearance cannot be told apart. If someone was to look at a glass of Coke and a glass of Pepsi,

it is virtually impossible to tell them apart. They are both dark in color, have carbonation, and

both barely have a scent. Even the calories in each drink are similar. There are about 140 calories

in a can of Coca-Cola, and about 150 calories in a can of Pepsi. Also, Coke and Pepsi were both

invented by pharmacists, and they were meant to serve as a form of medicine. Coke was meant

to keep the drinker’s body alert and awake, and Pepsi was meant to be a drink for the digestive

system to cleanse the human body.

Deciding to pop open a classic Coca-Cola or a modern Pepsi is the biggest decision to

make in a soda drinker’s world. To some, Coke and Pepsi are the same drink, just with different

packaging. To others, both sodas have completely different tastes, different looks, different

everything. Some people would not even about touching a Pepsi over a Coke and vice-versa.

Although Coca-Cola and Pepsi might seem similar, they are actually very different compared to

each other. First of all, while both drinks have some similar ingredients, they have different

components in each. In fact, in 1886, the creator of Coca-Cola, John Pemberton, actually

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manufactured Coke that contained cocaine and considered it a medicine. Later in the 1930s, the

cocaine content was completely removed from the drink. After the cocaine was removed, Coca-

Cola was made up of carbonated water, sugar, phosphoric acid, natural flavorings, caffeine, and

its secret ingredient called “7X”. Even today, Coca-Cola will not release the secret ingredient,

“7X”, formula because it is considered to be so top secret to the Coke company. Pepsi, on the

other hand, never had an ingredient as extreme as cocaine in it. Instead, Pepsi is made up of

sugar, phosphoric acid, caramel color, caffeine, citric acid, and natural flavors. To put it into

perspective, Coke is less sweet, has a fruity flavor and a higher fizzy effect, and is smoother to

drink. Pepsi is sweeter, has more of a cola flavor, and has a less fizzy effect compared to Coke.

Yes, Coca-Cola and PepsiCo have very similar marketing techniques, but each one

displays it in different ways. Throughout the years, PepsiCo has had many different logos and

slogans. Coke, on the other hand, has tried to stick to one logo and only a few slogans. The

PepsiCo Company has always been known to reach out to the public and help others. They do

that so they can be a part their customer’s lives. They mainly use the power of environmental

problems to help boost their reputation. Pepsi has donated millions and millions of dollars to help

clean and enrich the earth. These actions play along with their slogan, “Refresh Everything” (The

PepsiCo Company). Coke, compared to Pepsi, tries to keep it classic. They have barely changed

their logo (besides the letter size and font style), and have only had a few slogans since Coke’s

beginning. Coke’s slogan today, “Open Happiness” (The Coca-Cola Company), goes along with

the idea of being the classic soda drink. It still has that old-time feel when one is popped open.

Now, the great debate has always been which one does the public prefer, Coke or Pepsi?

Based on statistics from 2006, the two drinks were neck and neck. At the beginning, Coca-Cola

was in the lead; it is what most of the public preferred. As 2006 rolled around, the tides turned,

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and PepsiCo caught up, surpassing Coke. Pepsi’s sales growth nearly doubled Coke’s by the end

of the year. Although Pepsi’s sales growth is higher, Coke has stronger ties outside of North

America. It has the upper hand when it comes to international business and gaining profit

throughout the entire world. So not only are Coke and Pepsi the lead soda companies in the

industry, but they are very close when it comes to statistics and which the public desires most.

PepsiCo and Coca-Cola are two enormous leading companies in the soda industry with

many diverse and related qualities compared to each other. If someone wants a drink that has

extra fizz and a little kick to it, grab a Coke. On the opposite end, if someone wants a soda that is

sweet and bubbly, then pop open a Pepsi. Both drinks have something different about them that

can be easy to tell apart. On the flip side, they have so many similar characteristics to the point

where almost no one could identify which drink is Pepsi, and which is Coke. Whether it comes

to marketing or taste, the great debate is always going to remain the same…which one is

superior, Coca-Cola or PepsiCo?