Source: http://www.businessinsider.com/one-major-problem-with-pepsi-true-2014-10

 

Same as the Barcelona has Real Madrid, Coca Cola has Pepsi. This legendary rivalry has been going on for years and if you don’t believe check this out

 

• https://www.youtube.com/watch?v=pyMTSr8hbow
• https://www.youtube.com/watch?v=ekaHlWga5yA
• And my personal favorite: https://www.youtube.com/watch?v=IVndvFoQt34

 

Now that you can see what this brands are capable of doing to each other it wont surprise you the recent turn of events, where Pepsi just released its ‘Pepsi True’ just a month after Coke released its ‘Coke Life’. I am grouping these two products together because they have a very similar characteristic: they both target anti-sugar consumers by adding stevia and mixing it with sugar. Despite the great research done by the PepsiCo, analysts predict that this new product will ultimately fail.

 

It is true that innovation is an important in the competition for every market, specially so when there is so little differentiation between both rivals. However, the customer decides between these two companies mainly based on brand loyalty, which is in turn, based on the costumer’s personal tastes and the flavor of the soda itself. The decision rarely takes more than 10 seconds, so no matter what innovations Coca Cola or Pepsi come up with; the overall market share will not be affected drastically.

 

In spite of this, more and more companies are investing in stevia despite the lack of good responses because the public image of soda is very related to obesity. People mock soda’s alternatives such as Coke Zero or Pepsi Diet and instead is shifting to a more healthy life style. This is the reason why the soda market has been decreasing steadily in the last 10 years. With more and more investment in stevia as an attempt to improve soda’s image, who knows what will the soda market look in the next ten years.