Coke and Pepsi Discussion

Topic 1: Describe the Pepsi/Soviet counter trade agreement established in 1973 as presented
in the video case. Why was this agreement considered to be historic?
The 1973 Pepsi/Soviet trade agreement as presented in this video case was a historic one. The
agreement was a counter agreement which meant that Pepsi agreed to an equal amount of
Stolichnaya, a Russian Vodka in exchange for permission to sell the PesiCola in Russia. This
agreement is an historic trade as it gave a win-win situation for both parties as it established the
first production and sale of an American consumer product in the Soviet Union. This
phenomenal breakthrough in international cooperation also opened a huge market in the U.S. for
the Russian consumer exports.
Topic 2. According to the video case, why was Diet Coke not successful in Japan?
(Although not mentioned, this was also true in other countries). What did the company do
to adapt to consumer preferences in order to become successful?
As demonstrated in this video, the main reason Diet Coke was not successful in Japan is because
of the name “Diet” in the brand Diet Coke. The Japanese women were less reluctant in taking a
drink with the label “Diet.” As a remedy to this failure, the name diet coke was replaced with the
new tag “Light Coke.” Transforming the name was the key to making the drink consumable in
the Japanese market. This change is indicative of Coca-Cola’s adaptive nature, in that the
company can adapt to the cultures and the preferences of specific markets.
Topic 3. Describe any ONE communication strategy/approach used by Coca-Cola in
developing their advertising campaigns as shown in the video case. (There are at least
FOUR different strategic approaches described in the video case).
One communication strategy was using the theme of happiness as its brand. The company
utilized the hidden flag logo belonging to Denmark as a campaign material. This is because
Denmark is regarded as the happiest nation worldwide. The Denmark culture welcomes guests at
the airport by waving flags but when a person does not bring their own flag the welcoming
ceremony is not as ceremonial. In one of coke’s outdoor ads, such people can pick a flag from
the Coca-Cola logo thus spreading happiness to others
Replies
Discussion 4: Reply to Rebekah Bodie
Hello, you made an important observation on the PowerPoint. The different cans and languages
displayed on the Coke cans and Coca-Cola. I believe the different designs and shapes are made
intentionally to capture different market bases. Different markets have different needs and Coca
Cola understands that very well to expand to global status the company had to understand the
various market needs of various markets before penetrating the said markets.
Discussion 8: Reply to Angelica Crespo
Hello, it is amusing how the companies we buy from on a daily basis have exciting stories to tell.
I am also surprised on how these companies could be different in terms of either production, or
marketing in different markets. I was specifically amused by the Coca-Cola company case. It is
the epitome of market adaptation. The decision-making level of the company management shows
proper knowledge of various cultures and quick correction of mistakes which have impacts on
the brand or on the total sales. This knowledge has led to the growth of the company to a global
enterprise.