Advertisers Save the World

[Spiffor]

Originally posted by Ming
And that rebate is meant to increase trial/sampling. Once that rebate program ends, I'm sure the pricing will be much closer

So you do not argue the fact that the large difference (25% in normal time) is due to marketing, rather than to the actual quality of the product?

[Kontiki]

Originally posted by Spiffor

So you do not argue the fact that the large difference (25% in normal time) is due to marketing, rather than to the actual quality of the product?

What is this magical objective quality you're talking about? It's a soft drink - isn't the primary issue whether you like the taste or not?

[Ming]

Originally posted by Spiffor

So you do not argue the fact that the large difference (25% in normal time) is due to marketing, rather than to the actual quality of the product?

I don't see a 25% difference in normal times in the US. In most cases, pricing is similar. If they want to offer a rebate to stimulate sampling, that's not advertising... that's just simple and good marketing.

Coupons or rebates is a traditional way to encourage sampling and brand shifting... they are usually short term efforts and do not reflect normal pricing.

[Ultraviolet]

I'll have to agree with Ming, eventually (after the rebates and coupons and what not) all sodas are the same price, no matter where you go...in fact, I have lived in America all my life, and have never seen different sodas priced differently...call me weird, but I've never seen it...

[Imran Siddiqui]

Indeed... the prices are the same here too. Actually, a LOT of times I've seen Pepsi cheaper than Coke, and Atlanta is the headquarters of Coca-Cola!

[Zopperoni]

Originally posted by Spiffor
So you do not argue the fact that the large difference (25% in normal time) is due to marketing, rather than to the actual quality of the product?

I always have a hard time assessing "quality" with beverages.

Coke's success is attributable to its huge brand equity. The brand is communicated brilliantly as "the real thing", "the original" et cetera.

Pepsico can't battle Coke on brand equity, so they require both a different brand identity and other forms of purchase stimulation. Also look at celebrity endorsements; Pepsi uses a lot of celebrity endorsements (David Beckham, Britney Spears, the Star Wars movie). Who does Coke use? (Not "who uses coke?", that coke will probably be endorsed by more celebs.)

The Coca Cola company frequently communicates an experience (identity) while Pepsi sticks to things like "Wouldn't you like to drink the same soda... as Yoda?"

[Dr Strangelove]

Originally posted by Ming



All claims must be supported by facts!

Well, I wouldn't go that far. Take herbal medicines and OTC drugs for example.

[Ming]

Originally posted by Dr Strangelove
Well, I wouldn't go that far. Take herbal medicines and OTC drugs for example.

While it's probably not a smart thing to argue with a Doctor on this point...

The laws for advertising herbal medicines, OTC drugs, and prescription drugs are the toughest for any product.
Even what can be said on the packaging is highly regulated, and is the reason why many herbal medicines and vitamin supplements state that there are no known health beniffits to taking the project.

I take B5 supplements, and right on the label it states:
"This product is not intended to diagnose, treat or prevent any disease"

I'm sure you are probably refering to cases where the laws are being broken. But, there are indeed very tough regulations on what you can and can not say, and any claims must be supported by research/facts.

[Spiffor]

Originally posted by Zopperoni
Coke's success is attributable to its huge brand equity. The brand is communicated brilliantly as "the real thing", "the original" et cetera.

Yup, my point exactly. Marketing is the reason why the normal price difference (25% in Germany, where the marketing history for each brand is different to the US', Ming ) is so large.

[Spiffor]

Originally posted by Ultraviolet
I'll have to agree with Ming, eventually (after the rebates and coupons and what not) all sodas are the same price, no matter where you go...in fact, I have lived in America all my life, and have never seen different sodas priced differently...call me weird, but I've never seen it...

There are no cheapo ripoffs in the US?

[Ming]

Originally posted by Spiffor

There are no cheapo ripoffs in the US?

Sure there are... low priced brands and generic colas. They do cost less. And most of them taste cheaper too

Some people can't tell the difference, or think the extra money for Pepsi, Coke or any branded soft drink isn't worth it. But the majority like to know exactly what they are going to get...

With most food or beverage products, taste is the key factor.

[Zopperoni]

Right, price isn't representative of quality, but an indicator. Coke would lose its value proposition once it was positioned as a low-price article.

There was a study done in the sixties on beer taste. It's published in the renowned Journal of Marketing; men tasted beers with all different brand labels on them. They didn't taste a difference because it was all the same beer (just different labels), and yet, they rated their favorite brand higher.

Brand loyalty and brand identification are funny things

[Imran Siddiqui]

Originally posted by Dr Strangelove
Well, I wouldn't go that far. Take herbal medicines and OTC drugs for example.

Ming is correct that a lot of OTC drugs have to include explanitory statements. Right now the FDA allows OTC drugs to advertise based on their active ingredient. That ingredient determines the warnings and use statements which much be on the drug.

[Ming]

I love the prescription drug ads... after you finish listening to all the possible side effects, you have wonder why people would even take them

And in a different product category, you have love the label on the low fat pringles... can cause leakage...
Now that's truth in labeling