Coca Cola And Pepsi Case Study

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1. Introduction The world is painted with colors which are generally appreciated for their artistic facet. However, the beneath value of colors is beyond aesthetics, for they, to certain extent, have always inspired emotions and manners of human beings. In fact, O’Connor (ed. 2014, p.1) stated that color psychology, a branch of scientific study, had successfully illustrated the causal relation in that colors influenced human in three major ways including affective, cognitive and related behavioral aspects. A recent study (Singh 2006) reveals that “people make a subconscious judgment about a person, environment, or product within 90 seconds of initial viewing and that between 62% and 90% of that assessment is based on color alone”. Therefore,…show more content…
A related study (Abril et al. 2009) found that each color carries an inherent meaning which becomes fundamental to brand identification and conveys “a desired image”. Indeed, according to the University of Loyola, Maryland (cited in Morton 2010), the recognition of a brand can be advanced up to 80% merely with the employment of color. Furthermore, practical observation from branding history suggests that major companies often use colors to differentiate themselves from others in the same marketplace. The most classic illustration of this is the case of Coca-cola and Pepsi - two famous enterprises in the global beverage industry. Established later than Coca-cola nearly a decade, Pepsi Company attempted to distinguish itself from its primary competitor by choosing blue as the dominant color for its logo which is apparently opposite the color red of Coca-cola trademark (Labrecque & Milne…show more content…
Take the color red - the global symbol of love and danger for example, in Asian countries, it is also a sign of fortune, life and fertility; meanwhile, in Western nations, red is passion, excitement and a friendly reminder of Christmas (Seow 2016). An infamous illustration of culturally misusing colors was recorded in beverage industry when Pepsi Company decided to change the color of vending machines “from deep regal blue to ice light blue”. Unfortunately, ice light blue brings a sense of mourning in South East Asia, which resulted in the huge loss of Pepsi in this major market share (Fromowitz 2013). Therefore, this step of choosing is particularly essential when enterprises wish to change their brand image and expand their businesses internationally, or even in different parts of the same

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