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Unformatted text preview: Bryan Redd Cola Wars Part Industry Environment Questions 4, 5, and 6 4. Coke and Pepsi both have very effective advertising programs that are very similar to each other. When examining these programs to see which is most cost effective it is best to refer to some of the data presented in Exhibit 2 and 4 in our textbook on page 229. Exhibit 2 presents Advertising Spending for the Top 10 CSD Brands ($ Millions). Exhibit 4 presents the financial for Coke, Pepsi, and their largest bottles. From the data presented in Exhibit 4 on page 229 it is a safe assumption that Coke has the most cost effective advertising program for three reasons. First after reviewing Exhibit 2 and examining total advertising spending for each company, it was determined that in the year 2000 Coke spent an estimated $23 million in advertising whereas Pepsi spent an estimated $16.7 million. Next when exhibit 4 was examined it was discovered that Coke had more than double the amount of sales domestically, and more than ten times the amount of sales internationally of Pepsi in 2000. It is therefore safe to say that Coke has than ten times the amount of sales internationally of Pepsi in 2000....
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- Spring '08