The Cola Wars

There are a few reasons why the soft drink industry has been historically profitable for so long. One such reason is that soft drinks have been seen as a great and delicious alternative to drinking just water. Though water is essential to life and its even a main ingredient in soft drinks, its naturally very bland in taste and unexciting to the consumer. Soft drinks however are funs, flavorful, and delicious to drink so they give the consumer something else to desire and are bought to break up the monotony of drinking just plain water. A second reason that the soft drink industry has been historically profitable would be because of the fact that soft drinks have been a cheap buy for the consumer in comparison to anything else on the market. Soft drinks have been sold for as little as a nickel per a drink for varying sizes and quantities of the beverage, while other non soft drink beverages have gone for rate that are much higher than this. Even in todays market a consumer can go out to a store and buy any kind of soft drink product off the shelf and it would cost the a great deal less than it would for a bottle of juice or even a case of the healthy option, water. With a low purchase cost they have been able to entice consumer to continue to buy their products. A third reason that soft drink industry has been has a strong history of being profitable would be that they have always had strong marketing campaigns that appeal to their consumer base and audience.
With campaigns such as the Pepsi Generation which lasted for more than a decade to help them set target those who were young, or at least young at heart, and even had the catch phrase “For those who think young” at one point helped them capture and steal away from Cokes large market share, and even brought them to within a 2-1 sales gap, while Coca-Cola used it’s a Coca-Cola lifestyle to market its soft drinks, even going as far as being a sponsor of the U.S. armed services and offering soldiers a flat rate for their products during WWI. Marketing campaigns such as these help boost sales of soft drinks over several decades and gained them loyal customers who have stuck by and continued to purchase the product that they like to drink. This way of marketing has help create a type of lifestyle for the consumer, which can have a strong benefit for them in the next generation, because if the parent of children have a certain kind of drink that they get their children on, then they are helping create the next generation of consumers for a product.

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