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/p7r Dec 16 '12

Nobody goes into a Starbucks just for a coffee in the same way they don't buy a BMW because they just want a car.

There are a huge number of brand, cultural and identity images battling away in your head behind every brand choice. Clever brands manage to make it almost entirely subconscious - you're not meant to walk in thinking you are making a statement, that's the point.

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u/mickey_kneecaps Dec 16 '12

And the fact that there is only one coffee shop on the street that I happen to be on makes no difference? Give me a break.

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u/onsos Dec 17 '12

So you are getting a 'coffee'? Why not a coke or energy drink? Why not a carton of ice coffee from a store? Why do you call it a coffee, anyway? Why don't you go to a restaurant or diner?

All of these are wrong for me. I struggle to recognise the product as coffee. I prefer a coke or an energy drink, or to go to a restaurant or diner. Or a cafe, where I can get espresso.

Advertising explains the difference in our attitudes. I respond to one set of advertising, but not Starbucks. Someone else looks at me drinking an espresso with confusion--or contempt.

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u/k1down Dec 17 '12

Because it's some damn good coffee

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u/onsos Dec 17 '12

The Starbucks or the espresson? I'm confused.