r/explainlikeimfive 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

View all comments

Show parent comments

6

u/[deleted] Dec 16 '12

[deleted]

21

u/kiwirish Dec 16 '12

Depends on how used to the tastes you are, maybe in New Zealand we have larger taste difference to the US, but in a split-second I can tell you if I'm drinking Coke or Pepsi, the difference to me is vast, but they're good in their own ways.

1

u/lazyFer Dec 17 '12

I don't like the added sweetness of pepsi, I also don't like how the carbonation feels and that it goes flat so fast.

1

u/kiwirish Dec 17 '12

To each their own, I like Pepsi, but it's clear that most of the world prefers Coke. You do raise a good point though, I only like Pepsi when drunk quickly, otherwise I prefer Coke, because I tend to drink it slower, and it is fresher for longer.