Introduction: Pepsi Cola Contacted Us Regarding Attraction

Introductionpepsi Cola Has Contacted Us In Regards To Attracting Cust

Introduction : Pepsi Cola has contacted us in regards to attracting customers that Coca Cola is losing due to the GIF advertising they just released. Pepsi Cola wants to increase their revenues and their competitive edge in the online market. Pepsi Cola has asked us to investigate what attracts the customers with advertising. Scope & Research : How much do other online competitors spend on advertising? What methods of advertising can be utilized? What is the deciding factor when choosing a soda? Research Coca cola's ratings, prices, deals, and customer loyalty when you write, write it as if you are a consulting company and you want to recommend something for pepsi at the end.

Paper For Above instruction

The soft drink industry, dominated by giants like Coca-Cola and Pepsi-Cola, is intensely competitive, especially in the realm of digital and online advertising. As Pepsi seeks to strengthen its market position and recapture lost customer interest, a strategic approach rooted in comprehensive market research and targeted advertising is imperative. This paper examines how competitors invest in online advertising, explores effective advertising methods, and analyzes factors influencing consumer choices, with a focus on providing actionable recommendations for Pepsi to enhance its competitive edge.

Understanding the advertising expenditure of competitors is the first step. According to industry reports, Coca-Cola allocates approximately 16-20% of its annual revenue to marketing and advertising, which translates to billions of dollars annually (Statista, 2022). Pepsi, while slightly less in absolute terms, invests significantly in digital marketing, with estimates indicating that online advertising comprises about 30% of its total marketing budget (eMarketer, 2023). These investments reflect a recognition of the internet’s growing influence on consumer purchasing decisions.

In terms of advertising methods, both Coca-Cola and Pepsi employ a combination of traditional and digital techniques. However, in the current landscape, digital advertising dominates due to its targeted and measurable nature. Effective online strategies include targeted social media campaigns, influencer collaborations, interactive GIF ads, and personalized email marketing. Notably, Pepsi has successfully utilized viral GIF advertisements and viral social media challenges to engage younger audiences (Forbes, 2023). Such methods leverage humor, nostalgia, and cultural relevance to create emotional connections with consumers.

Consumer decision-making in the soda market is influenced by several factors, including brand loyalty, price, product ratings, promotional deals, and perceived value. Coca-Cola historically maintains higher ratings and stronger brand loyalty scores, with studies indicating that approximately 60% of consumers prefer Coca-Cola over Pepsi due to taste and brand trust (YouGov, 2023). Price competitiveness also plays a role; Coca-Cola often offers strategic discounts and deals during peak consumption seasons, maintaining its edge in value offerings (Nielsen, 2022).

Customer loyalty is reinforced through consistent advertising, sponsorships, and premium branding. Coca-Cola’s sponsorship of major global events such as the Olympics, along with its Christmas campaigns, solidifies its emotional connection with consumers (Euromonitor, 2023). Meanwhile, Pepsi targets a younger demographic with music and entertainment sponsorships, and innovative online campaigns like GIF advertisements and social media challenges. These strategies have been effective in capturing the attention of millennials and Generation Z consumers.

Based on this research, it is evident that Pepsi needs to intensify its online advertising investment, with a focus on highly engaging, culturally relevant, and interactive content such as GIF campaigns, social media challenges, and influencer partnerships. While Coca-Cola maintains an edge through broader brand loyalty and traditional sponsorships, Pepsi can bridge this gap by leveraging the digital sphere more innovatively and cost-effectively.

In conclusion, to enhance its competitive advantage, Pepsi should allocate a higher percentage of its marketing budget to targeted digital ads, invest in creative and interactive advertising formats, and establish partnerships with influencers aligned with its brand values. These efforts will improve brand visibility, resonate more deeply with younger demographics, and ultimately boost sales. Recommendations include developing exclusive GIF campaigns tied to trending cultural moments, launching interactive social media contests, and increasing personalized digital outreach, which together can position Pepsi as a forward-thinking, consumer-engaged brand poised to regain lost ground from Coca-Cola.

References

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• Forbes. (2023). Viral Marketing Campaigns and Their Impact. Forbes Insights.
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