New Cola War Breaks Out

Great ad and I can't see what they have to lose. Smaller brand takes on big brand head on and probably grabs a bit of market share for their effort.

Al McClain, CEO, Founder, RetailWire.com

This new "war" won't help Coke or Pepsi in their head-to-head battle, but it will help Coke AND Pepsi, i.e., it will continue to crowd out any awareness/preference for the myriad other soft drinks that can't shout as loud as these two giants.

These campaigns are all about maintaining the status quo--and they do it quite well.

Peter Fader, Professor of Marketing, The Wharton School of the Univ. of Pennsylvania

I think Pepsi has effectively been winning the Cola Wars since 1985 when Coca-cola felt the need to alter its formula to taste more like Pepsi--the infamous "New Coke" debacle. Pepsi knows it will never be number one, but this kind of public competition helps enshrine it as a solid number two.

Dan Berthiaume, Editor, Independent consultant

The sales of carbonated soft drinks have been declining for some time as consumers sought alternatives. A new cola war may generate additional buzz and slow the trend for the category. As they say "A rising tide raises all boats.

Steve Montgomery, President, b2b Solutions, LLC

What do cola wars do? They create temporary lower prices and lots of promotional "warfare" advertising. Coke and Pepsi devotees like that. It makes soda buying seem a little more exciting. So cola wars are frequently re-created. It's a marketing déjà vu.

But with due difference to Lauren Hobart's claim that cola wars are are a vital part of Coke's and Pepsi's heritage, it could seem more like an ancient marketing illusion, perhaps disillusion. Nonetheless, let the cola cannons fire away.

Gene Hoffman, President/CEO, Corporate Strategies International

Cola war? Yawn, snore.

Carol Spieckerman, President, newmarketbuilders

I agree that the "cola wars" are a marketing initiative, with a possible short-term lift for the category. Pepsi will continue to work on positioning, gaining share, but in a continuously shifting and declining market, it will take a sustained effort to keep it. After all these years, Avis is still a strong number 2 alternative with loyal customers--Pepsi can maintain a solid second position with the right approach for its key consumers.

Anne Bieler, Sr. Associate, Packaging and Technology Integrated Solutions

I'll concede I harbor a twinge of nostalgia for the old cola wars. But minute examination of TV advertising creative seems a bit quaint these days too. Brand equity is hotly pursued in social and mobile media; while every smart shopper/marketer today knows the game is won or lost in store-level distribution. For many diet cola drinkers, their favorite brand is the one on deal that week.

James Tenser, Principal, VSN Strategies

This is comparative advertising with fun. But, the one thing you must do when you initiate comparative advertising is be sure you win the comparison when the consumer bites. Otherwise, you are pouring water in a leaky bucket and wasting a lot of money for a one-time purchase.

Assuming Pepsi knows what they are doing and they will win a comparison, the huge win is to draw Coke into the battle and find that Coke's media spending is including a can of Pepsi.

However, Coke has rarely bitten at such challenges and it is almost never in the interest of the market leader to respond in kind.

Gene Detroyer, Entrepreneur, Advisor, Consultant, Professor, Independent

The "cola wars" commercials might just be the third in a long line of successful ongoing ads behind the Mean Joe Greene original and the Budweiser Clydesdales.
There is no loser here. Each side will gain more sales while hopefully not losing much in the trade offs of changing sodas by the customers. Certainly the viewing public is going to get enjoyment watching as well as tasting. And the social media piece will be there for more postings on YouTube. I am looking forward to more of these.

Ed Rosenbaum, CEO, The Customer Service Rainmaker, Rainmaker Solutions