In Elyssa Heng’s blog, she talks about the rivalry between Coke and Pepsi, but there is no better example of their rivalry than when Pepsi created Pepsi crystal and coke killed it.

Back in 1992 Pepsi decided to try and create a clear pepsi to try and compete with non-cola drinks, such as Sprite and Fanta. In taste tests this drink seemed to be very popular and consumers liked it. To these consumers, the clear color meant wellness, which Pepsi tried to reinforce by making the drink caffeine-free. Pepsi was also looking to launch on superbowl, which is known as one of the best times to advertise.

Then one day, Coke came and introduced “Tab Clear”, a drink similar to “Crystal Pepsi”, but diet. This subtle change ended up taking advantage of the confusion consumers had in thinking of “Pepsi Crystal” as a wellness drink, with the same great taste as Pepsi without caffeine and repositioned Pepsi Crystal as a medicinal drink. Within six months, both “Tab Clear” and “Crystal Pepsi” were taken off the market. This is one of my favorite stories of the adversity between Pepsi and Coke, because it shows the affect both have on each other and has an amazing strategy.