r/explainlikeimfive • u/bigdubsy • Dec 16 '12
ELI5: Why does Coca-cola still advertise? Explained
Why do companies that have seemingly maxed out on brand recognition still spend so much money on advertising? There is not a person watching TV who doesn't know about Pepsi/Coke. So it occurs to me that they cannot increase the awareness of their product or bring new customers to the product. Without creating new customers, isn't advertisement a waste of money?
I understand that they need to advertise new products, but oftentimes, it's not a new product featured in a TV commercial.
The big soda companies are the best example I can think of.
Edit: Answered. Thanks everyone!
Edit 2: Thanks again to everybody for the discussions! I learned alot more than I expected. If we weren't all strangers on the internet, I'd buy everyone a Pepsi.
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u/onceforgoton Dec 17 '12
No, most pills do actually taste absolutely horrible if you chew them. That's because pills weren't meant to be chewed, so why waste money finding ingredients that taste good and still provide the chemical properties you need?