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.

2.0k Upvotes

93% Upvoted

View all comments

Show parent comments

1

u/[deleted] Dec 17 '12

So, if someone walks into a restaurant and orders a glass of Coke, and unbeknownst to them, you pour them a glass of Pepsi, would they notice?

2

u/onehundredmonkeys Dec 17 '12

A lot of people would notice.

2

u/RobertTheSpruce Dec 17 '12

Depending on your syrup/water mix in the dispenser, people might incorrectly assume one is the other.

1

u/dividezero Dec 17 '12

that's true. serving soda from a fountain is always a crap shoot. in addition, the water can have an affect. For example, there's a community near here where the city water tastes like mold to me for some reason and it even gets into the soda (by way of the ice, i'm sure). Always so weird.