Get ready for your daily dose of marketing strategies and tactics from entrepreneurs with the guile and experience to help you find success in any marketing capacity. You're listening to Marketing School with your instructors Neil Patel and Eric Sue. All right, guys, before we start, we got a special message from our sponsor. If you want to rank higher on Google, you got to look at your page speed time. The faster website loads, the better off you are with Google's Core Vital update. That makes it super super important to optimize your site for low time. And one easy way to do it is use the host that Eric and I use, dream Hosts. So just go to dream host or Google it, find it, check it out, and it's a great way to improve your low time. Welcome to another episode of Marketing School. I'm Eric Sue and I'm Neil Patel, and today we are going to talk about how Pepsi defeated Coke in two battles and what you can learn from it. So we all know Coke is Coke still the biggest beverage company in the world. Yes, yeah, okay, and market cap WHI is at least Coca Cola is bigger. M hm, Pepsi has a huge market cap as well. Yeah, I'm like looking up Coca Cola's market cap. I'm like ninety nine percent sure Coca Cola has a larger market cap, so as he's looking for it. So here's the story. So Pepsi actually beat out Coke in two occasions, and the story is really fascinating. There's a there's a book called fizz or Fizzled, which talks about the battle between the two companies. And there's this other podcast that listened to that talked about the battle between Coke and Pepsi. It's called Business Wars, So check out that one. But what really caught my attention was that even the little underdog Pepsi, which went out of business a couple of times and had to be resurrected, what they did when Coke was way ahead and it seemed like they couldn't be stopped. Well, they said, hey, five cents you get double the amount, okay, So basically Coke was charging ten cents at the time, they're charging five cents. It was just their marketing play. Five cents you get double the amount, and they started taking and their sales started growing a lot, even when Coke was trying to sue everyone out of existence at the time. So, Neil, I mean that seems like marketing one on one thing. It doesn't seem that unique to us today. What are your thoughts around that? Yeah, So going back first to size, Coca Cola is roughly twenty one percent larger than pepsi. If you do something that's very price sensitive, like reducing it drastically, giving people real value for the money, even if that means you're going to lose money or have no margins, kind of like the Amazon philosophy. It's a great way to gobble up market share and take over. Once you take out most of your competitors. Yes, you want to start increasing your prices or eventually you're going to have no choice, but it's a great strategy at the beginning. It's just like Uber and Lyft. They kept offering amazing deals and bonuses for you to use Uber Overlyft or vice versa. It made it where the drivers eventually didn't get paid as much as they wanted. But that strategy helped Uber and Lyft grow into these multi billion dollar companies and take more people away from not just the taxicab industry, but also from them just buying their own car and driving. It's a great strategy, but if you don't have a ton of cash, it can't hurt you, and it may not work out in the short run. Right. So here's the second story. And really like all these these business war stories, So in the I think it's the eighties, when did When did well? I guess I don't want to like, you know, let's just talk about the story. So in the eighties, Michael Jackson was really popular, right, and I would say even in the seventies too, right. Seventies yeah, seventies, okay, seventies, eighties, right, So Michael Jackson was like the king of pop, number one pop star in the world. Right. So you know, at the time, Pepsy was losing market share again and they didn't know what to do. So what they did was the secret weapon that they had their trump card, was they reached out to Michael Jackson. They said, hey, we'll pay you, you know, a million dollars or whatever. He's like, no, he pay me a couple million dollars, And I'll do it because I'm going to make Coke wish that they were PEPSI Right, And after they did that. They literally like it was a I don't know, they showed his gloves, it showed like his hair, everything. He like a unique song like a just four pepsi for that commercial. And they just started to take off in the eighties and I think I don't think they overtook Coke, but they really started to blow up at that time. So these are a couple of two occasions where they really started to jump. They're lagging behind and they started to jump forward because they did these things. Yeah, and when it comes to strategies, I personally prefer the first one just undercutting the competition. I do it as well, and you see it these days by things like freemium or free trials or just even free. But now with the second one, they're leveraging influencers. You guys all see this on Instagram with the influencer marketing. It's a mini version of it. It's quite expensive. It doesn't produce as much of an ROI as most people think. Yes, if you get a celebrity like the Kardashians, it can help your business. But let me ask you this, if Kim Kardashian promoted I Neil Pateel or my ad agency, Neil Pateel Digital being like they're the best marketers ever. A lot of people wouldn't really care because they're just like Kim. You're known as a fashionista. She's known for being famous and probably a few other things. She is smart. I don't know personally, but when people look at that, they're not going to be like, oh, we got to work with Neil. On the flip side, if Bill Gates or Warren Buffett said, you know, Neil Betel's ad agency is amazing, you guys got to all work with him, Everyone's going to be like, oh, Warren Buffett said something about Neil. He knows what he's talking about. He's business oriented. He has way less followers than Kim Kardashian. He may not even be on all the social sites. It just shows you that influencers that are relevant are much more effective than broad influencers. And that's why influencer marketing doesn't work that well because the people that you ideally want to promote you, in most cases they're not online. It doesn't mean you can't find them, but it works much better for like broad consumer type of products or things that have mass appeal. Yeah, I think Neil brings up a good point too, because it all depends on the times that we live in. So you know, back in that day, you do a Michael Jackson thing, everybody's like, oh, and then it's a consumer product, right that everyone can drink people drinks. Yeah, so just think about like it has to match up with your audience. And just to bring up the point that you mentioned a second ago, a couple of years ago, PEPSI actually tried to do it again. They did Beyonce and then they did Britney Spears and it did someone else and it fell flat. Like they conepe their sales continue to decline because that's when you know, people start to realize like America is like too fat, and like well, people started to like, you know, the war on sugary drinks started to happen. So keep that in mind. It doesn't always work, but it might give you a couple of ideas. I think Neil brings up a couple of counterpoints that are really good for both the first story and the second story. Anything else, Nope, that's it for mine, all right, So that's it for today. If you want us to throw a live event for free in Los Angeles, all you have to do is go to Marketing School dot io, slash stats with an S and then rate reviews, subscribe this podcast help us get to a million downloads over a thirty day period. Once we do that, we will do the live event, probably looking at Q one or Q two of twenty nineteen, and we hope to see you there. This session of Marketing School has come to a close. Be sure to subscribe for more daily marketing strategies and tactics to help you find the success you've always dreamed of, and don't forget to rate and review so we can continue to bring you the best daily content possible. We'll see you in class tomorrow right here on Marketing School

Get ready for your daily dose of marketing strategies and tactics from entrepreneurs with the guile and experience to help you find success in any marketing capacity. You're listening to Marketing School with your instructors Neil Patel and Eric Sue. All right, guys, before we start, we got a special message from our sponsor. If you want to rank higher on Google, you got to look at your page speed time. The faster website loads, the better off you are with Google's Core Vital update. That makes it super super important to optimize your site for low time. And one easy way to do it is use the host that Eric and I use, dream Hosts. So just go to dream host or Google it, find it, check it out, and it's a great way to improve your low time. Welcome to another episode of Marketing School. I'm Eric Sue and I'm Neil Patel, and today we are going to talk about how Pepsi defeated Coke in two battles and what you can learn from it. So we all know Coke is Coke still the biggest beverage company in the world. Yes, yeah, okay, and market cap WHI is at least Coca Cola is bigger. M hm, Pepsi has a huge market cap as well. Yeah, I'm like looking up Coca Cola's market cap. I'm like ninety nine percent sure Coca Cola has a larger market cap, so as he's looking for it. So here's the story. So Pepsi actually beat out Coke in two occasions, and the story is really fascinating. There's a there's a book called fizz or Fizzled, which talks about the battle between the two companies. And there's this other podcast that listened to that talked about the battle between Coke and Pepsi. It's called Business Wars, So check out that one. But what really caught my attention was that even the little underdog Pepsi, which went out of business a couple of times and had to be resurrected, what they did when Coke was way ahead and it seemed like they couldn't be stopped. Well, they said, hey, five cents you get double the amount, okay, So basically Coke was charging ten cents at the time, they're charging five cents. It was just their marketing play. Five cents you get double the amount, and they started taking and their sales started growing a lot, even when Coke was trying to sue everyone out of existence at the time. So, Neil, I mean that seems like marketing one on one thing. It doesn't seem that unique to us today. What are your thoughts around that? Yeah, So going back first to size, Coca Cola is roughly twenty one percent larger than pepsi. If you do something that's very price sensitive, like reducing it drastically, giving people real value for the money, even if that means you're going to lose money or have no margins, kind of like the Amazon philosophy. It's a great way to gobble up market share and take over. Once you take out most of your competitors. Yes, you want to start increasing your prices or eventually you're going to have no choice, but it's a great strategy at the beginning. It's just like Uber and Lyft. They kept offering amazing deals and bonuses for you to use Uber Overlyft or vice versa. It made it where the drivers eventually didn't get paid as much as they wanted. But that strategy helped Uber and Lyft grow into these multi billion dollar companies and take more people away from not just the taxicab industry, but also from them just buying their own car and driving. It's a great strategy, but if you don't have a ton of cash, it can't hurt you, and it may not work out in the short run. Right. So here's the second story. And really like all these these business war stories, So in the I think it's the eighties, when did When did well? I guess I don't want to like, you know, let's just talk about the story. So in the eighties, Michael Jackson was really popular, right, and I would say even in the seventies too, right. Seventies yeah, seventies, okay, seventies, eighties, right, So Michael Jackson was like the king of pop, number one pop star in the world. Right. So you know, at the time, Pepsy was losing market share again and they didn't know what to do. So what they did was the secret weapon that they had their trump card, was they reached out to Michael Jackson. They said, hey, we'll pay you, you know, a million dollars or whatever. He's like, no, he pay me a couple million dollars, And I'll do it because I'm going to make Coke wish that they were PEPSI Right, And after they did that. They literally like it was a I don't know, they showed his gloves, it showed like his hair, everything. He like a unique song like a just four pepsi for that commercial. And they just started to take off in the eighties and I think I don't think they overtook Coke, but they really started to blow up at that time. So these are a couple of two occasions where they really started to jump. They're lagging behind and they started to jump forward because they did these things. Yeah, and when it comes to strategies, I personally prefer the first one just undercutting the competition. I do it as well, and you see it these days by things like freemium or free trials or just even free. But now with the second one, they're leveraging influencers. You guys all see this on Instagram with the influencer marketing. It's a mini version of it. It's quite expensive. It doesn't produce as much of an ROI as most people think. Yes, if you get a celebrity like the Kardashians, it can help your business. But let me ask you this, if Kim Kardashian promoted I Neil Pateel or my ad agency, Neil Pateel Digital being like they're the best marketers ever. A lot of people wouldn't really care because they're just like Kim. You're known as a fashionista. She's known for being famous and probably a few other things. She is smart. I don't know personally, but when people look at that, they're not going to be like, oh, we got to work with Neil. On the flip side, if Bill Gates or Warren Buffett said, you know, Neil Betel's ad agency is amazing, you guys got to all work with him, Everyone's going to be like, oh, Warren Buffett said something about Neil. He knows what he's talking about. He's business oriented. He has way less followers than Kim Kardashian. He may not even be on all the social sites. It just shows you that influencers that are relevant are much more effective than broad influencers. And that's why influencer marketing doesn't work that well because the people that you ideally want to promote you, in most cases they're not online. It doesn't mean you can't find them, but it works much better for like broad consumer type of products or things that have mass appeal. Yeah, I think Neil brings up a good point too, because it all depends on the times that we live in. So you know, back in that day, you do a Michael Jackson thing, everybody's like, oh, and then it's a consumer product, right that everyone can drink people drinks. Yeah, so just think about like it has to match up with your audience. And just to bring up the point that you mentioned a second ago, a couple of years ago, PEPSI actually tried to do it again. They did Beyonce and then they did Britney Spears and it did someone else and it fell flat. Like they conepe their sales continue to decline because that's when you know, people start to realize like America is like too fat, and like well, people started to like, you know, the war on sugary drinks started to happen. So keep that in mind. It doesn't always work, but it might give you a couple of ideas. I think Neil brings up a couple of counterpoints that are really good for both the first story and the second story. Anything else, Nope, that's it for mine, all right, So that's it for today. If you want us to throw a live event for free in Los Angeles, all you have to do is go to Marketing School dot io, slash stats with an S and then rate reviews, subscribe this podcast help us get to a million downloads over a thirty day period. Once we do that, we will do the live event, probably looking at Q one or Q two of twenty nineteen, and we hope to see you there. This session of Marketing School has come to a close. Be sure to subscribe for more daily marketing strategies and tactics to help you find the success you've always dreamed of, and don't forget to rate and review so we can continue to bring you the best daily content possible. We'll see you in class tomorrow right here on Marketing School