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Why pepsi price competition was so successful

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In 1934, Coca-Cola, which had been selling briskly for almost 50 years, seemed to be a mature, differentiated brand. However, in that year, a twice-bankrupt upstart called Pepsi-Cola, initiated aggressive price competition. It copied Coke's taste and sold Pepsi in a 12-ounce bottle for the same 5-cent price as the 6.5-ounce bottle of Coke. Pepsi's advertising jingle was "Twice as much for a nickel too."

Problem 1: What might have been some of the reasons why Pepsi's price competition was so successful?

Reference no: EM132694105

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