How Decades of Solid Branding Saved Coca-Cola from the Pepsi Challenge

The Pepsi Challenge was a marketing campaign started in 1975. It was simply a blind taste test between Pepsi and Coca-Cola, touting that even Coca-Cola fans choose Pepsi. It was a wildly successful marketing strategy that they revisited for decades. Coca-Cola even ran their own private tastes test, through which they found Pepsi was indeed chosen over half of the time, and panicked. They briefly released New Coke in 1985, a formula more similar to Pepsi’s cola. This initiative turned out to be one of the biggest failures in established branding history. Coca-Cola consumers were wildly disappointed. Miraculously, despite Coca-Cola’s snafu, and Pepsi’s increased market share, Coca-Cola remained number one in the soda game, and still reigns today.

In 2004, Baylor College of Medicine performed a version of the Pepsi Challenge with subjects hooked up to a functional magnetic resonance imaging (fMRI) machine. The results were interesting. In blind taste tests, most people preferred Pepsi, just like the Pepsi Challenge. The Pepsi drinks lit up activity in an area of the brain known as the ventral putamen, which helps us evaluate different flavors. It would seem that Pepsi does taste better! However, when the subjects were told which beverage they were sampling before they tasted it, they decided Coca-Cola tasted better. The fMRI scans showed the sips of Coca-Cola increased activity in the medial prefrontal cortex. This part of the brain is more involved in decision making. When the subjects knew they were drinking Coca-Cola, they weren’t simply evaluating flavor, they were considering memories and experiences. The study’s conclusion was that this prefrontal activity was associating the soda with the brand, in effect, overriding the taste buds. When choosing Coca-Cola, consumers are choosing the brand they know and love. Building a successful brand is more than a good product, it’s building a comprehensive experience.

Lake_Eola_Park_in_Orlando_02

6 Benefits of Choosing a Local Agency

When it comes to branding and marketing, choosing the right agency is crucial. While larger global agencies may seem like the obvious choice, working with a local agency can provide unique benefits that can make a big difference in the success of your branding efforts. In this article, we’ll explore six key reasons why working…

color-chart-on-brown-wooden-table

Why Colors Matter

Choosing the right colors for your brand is a crucial step in building a strong and effective visual identity. While color preference is subjective, certain colors are associated with specific traits or emotions that can influence how your brand is perceived by your target audiences. Understanding color psychology and its impact on branding can help…

Hands of three people building a tower of wood blocks on a table, teamwork concept.

The Foundations of Branding

The foundations of your brand is your logo, your messaging, website, imagery and promotional materials. Keeping a consistent brand is critically necessary when it comes to building brand equity. Brand equity adds value to your company based on the core values you promote, and comes in the form of perceived quality. Brand consistency is key…

small-business-DHZ8SE6

6 Reasons why a Strong Brand is Important for your Small Business

Building a strong brand is a critical component of any successful business. A well-crafted brand strategy not only helps businesses establish recognition and build trust with their customers, but also supports advertising efforts and inspires employees. Furthermore, strong branding can increase a business’s financial value and generate new business opportunities through word-of-mouth referrals. As the…

colorpsych

Color Psychology

Color psychology is the study of hues as a determinant of human behavior. Colors can cause certain emotional reactions, and even influence perceptions that are not necessarily conscious. Color psychology is used all around us, taking its cues from nature, and should be considered in marketing and branding. The following are just some common color…

New York Times Square

5 Reasons Successful Branding Is Important

In today’s highly competitive marketplace, building a strong brand identity is crucial for businesses looking to stand out and connect with their target audience. A well-crafted brand strategy not only delivers a clear and compelling message but also creates an emotional connection with customers, reinforces credibility, and inspires loyalty. In this article, we’ll explore six…

Male hand drawing a light bulb over blue background in a conceptual image.

How to Create a Brand

Building a strong brand is essential for any business looking to stand out in today’s highly competitive market. A successful branding strategy can help you connect with your target audience, build trust, and differentiate your business from your competitors. Here are some tips on how to build a strong brand for your business: Determine your…

logos-post

10 of the Most Recognized Logos in the World

We’ve compiled a list of the world’s most recognized logos. Yes, many of these logos have gone through some tweaks throughout the years, but for fun, we listed the year the first version of their current logo appeared. Some of these companies have even been around longer than their currently recognizable logo! It just goes…