Hello, OptiMIST People!

Back at it again with KaMIST! Your weekly dose of insights into the latest marketing trends. In this week’s KaMIST we’ll dive into Coke And Pepsi’s rivalry heading to an unknown battleground.

Known for their persistent and never-ending rivalry, Coke and Pepsi enters a new stage in their marketing era, with high sustainability standards, continuous technology development, and the ever-changing customer preference means they’ve got their work cut out for them.

Coke and Pepsi, whose relationship predates the 20th century, have been instrumental in forming the outlines of modern advertising and defining what it means to be a brand. Similarly, Coke and Pepsi’s marketing spats have often mirrored broader social change and disruption, reflecting the cutthroat tactics of early packaged goods industrial expansion, the counterculture of the 1960s and 1970s, and in today’s world, the concept of brand purpose, in which a company pursues a deeper set of values than merely selling goods.

Looking back to the early days, Coke, which was first sold in 1886, has secured its leadership position in the market, using marketing strategies such as iconic ads with artists like Norman Rockwell with slogans that capture a clean and healthy lifestyle. On the other hand, Pepsi was more flashy and value-oriented. They were also more innovative in terms of marketing. In the late 30s, they introduced radio jingles on how consumers could get more drinks at lower prices, revolutionizing radio advertising at the time. Although those kinds of marketing tactics aren’t relevant to today’s standards, it lays the foundation for Pepsi’s identity in an important way that still resonates today, especially through its close relationship with music.

For Coke and Pepsi, the future may demand a more cooperative rather than competitive approach. As the struggle for consumer attention continues to expand, leaping to new channels like gaming and the Metaverse, where advertisers are executing another land grab, this is going to be a tricky needle to thread. Coke plans to introduce a limited-edition soda that is aimed at tasting like computer pixels, in favor of the growing traction of the Metaverse and was touted in the online game Fortnite (Gen Z’s favorite). Pepsi is trying to find its place in the Metaverse through a format like Non-Fungible Token (NFT). Their first NFT drop in December was related to the rich history and relation Pepsi has with music. Both companies also face a new challenge with more and more people turning away from carbonated sweet drinks because of concerns with obesity and other health problems. Not only that, brands now must also contend with sustainability issues, an area where food and beverage companies generate huge amounts of waste.

With that being said, it’s safe to say that Coke and Pepsi are heading in an unknown battleground, with the world they used to know, is changing evidently. Continuous marketing innovation could help them maintain momentum in the future. What do you think? Do you think Coke and Pepsi can survive in today’s world of modern marketing?

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The idea of delivering the most value for the consumer has evolved over the years. As we know, the best marketing strategy is cetera desunt for adaptive future-leader mindset that uncertainly evolved over decades. Companies began to use various promises in effort to persuade and attract customers. The fiercely increasing conditions of competition added the popularity of the concept of “brand” and “advertisement” by adopting the concept of neo-marketing and elaborate them with psychological terms. Albeit, all emotion influences consumers personal relationships, business choices, and buying decisions. The emotion itself has situational and reactive qualities, as well as satisfaction and expectations formed over lifetimes of experiences and interactions.

When a boy goes to an ice cream parlor or restaurant, he will feel befuddled. Choosing what he is going to get, that’s the thing that he despises. Would chocolate chip or strawberry ice cream please him better? Cheeseburger or fried chicken? He feared that what he selected will not give him as much pleasure as the other option would give. What he doesn’t choose could provide a higher sense of pleasure than the one he chose. One interesting finding utilized by neuromarketing is that people really don’t want to lose out. People are just as worried about what they might lose as to what they might gain.
In the meantime, one of the biggest challenges that marketers deal with is customers’ expectations in the pre-purchase phenomenon where the consumers haven’t fixed their buying decision yet. To tackle the challenge, many companies are competing to build relationships with their customers, with the expectations that they will be able to provide the best customer experience for specific individuals. Therefore, the company must be customer-centric to carry out a successful marketing strategy in order to be noticed by consumers and to forge a brand identity.

According to McKinsey (2019), by making a fundamental change of mindset of focusing on the customers, companies gained significant enhancement on several aspects. Along with operational and IT improvements, companies generate 20 to 30 percent uplift in customer satisfaction, a 10 to 20 percent improvement in employee satisfaction, and economic gains ranging from 20 to 50 percent of the cost base addressed in the various journeys.

To overcome these challenges, companies have to understand consumers’ behavior and expectations. Hence, companies should put a bigger concern towards consumers’ buying-cycle from awareness to its advocacy. By implementing the concept of Neuromarketing, stereotypes of the communication matters of the marketing basis will be integrated with taste of individual market itself. The more personalized the promotion, the higher the probability that the advertisement will work. It could be done by using big data to allow the company for this huge aggregation of all consumers personal information that they’ve ever revealed to build a precise representation of who they are, now, more than ever before. Data and insight are not delivered to consumers as a whole but individually by delivering the most value to the customers with a very specific scope based on how they think.

In order to win in today’s marketplace, companies must be customer-centered, to the point that ideally, each individual customer’s values are taken into an account to derive the value that they are truly seeking. In essence, by generating consumer reactions, and treating them not as reactionary receptacles of marketing strategies, but as each their own person with differing individual values. Therefore, reinforcing belief is a very important matter for marketers that influences consumers experience. They must deliver superior value to their target customers traditionally and digitally with knowledge of neuroscience marketing strategies combined. Neuromarketing will surely strengthen customer’s contentment of a product itself.