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/zephyrtr Dec 16 '12

Yeah Pepsi tastes more like sugar, Coke tastes more like caramel and caffeine.

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u/Treshnell Dec 16 '12

Yeah, Pepsi product really come across as more sugary tasting. When I was younger I generally preferred Pepsi, but as I've aged I've come to prefer the slightly more bitter taste of Coke. Mt. Dew still reigns supreme over my citrus soda preferences, though.

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u/SurprisePunchline Dec 17 '12

You want your mind blown? Coke and Pepsi taste different in different countries because they adjust the flavor to appeal to different markets. Pepsi in the UK tastes almost exactly the same as Coke in the US, whereas Coke in the UK tastes like US Pepsi with added lemon.

I came to the US and people were horrified when I said I preferred Pepsi... then I tried the American ones and was shocked. SHOCKED!

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u/_Madison_ Dec 17 '12

Yeah coke in the US has a really horrendous almost texture to it. I think its that corn syrup stuff but its just horrible.

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u/SurprisePunchline Dec 17 '12

The sad thing is that Pepsi Throwback is just Pepsi without the corn syrup, and instead of just going back to using sugar in all their drinks, they released a "special edition".

In the UK it's normal to make all sodas with sugar, and the branded drinks aren't cheap in the US, so it's a shame they put profit ahead of a better quality product :