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  • This is Pepsi's 1905 logo.

  • And this is Coke's from the same time period.

  • Now, watch them evolve or in the case of Coke, stay the same.

  • This doesn't mean Pepsi is indecisive.

  • Instead, it's a clue that the great soda rivalry is in fact about something other than taste.

  • Pepsi has a weird metallic aftertaste.

  • I think Pepsi has a sharper taste, and I think the carbonation affects both of them differently.

  • For years, consumers have obsessed over the smallest differences in taste.

  • The Pepsi Challenge was a marketing campaign started in 1975.

  • It featured a blind tasting of Pepsi and Coke.

  • The results, more Americans preferred Pepsi.

  • But throughout their history, Coke has held a firm grasp on the market.

  • So, why?

  • Both brands are courting entirely different consumers.

  • If we look closer at Pepsi's marketing, it makes the case that this soda brand embraces change, while Coke keeps itself firmly entrenched in the classic past.

  • This is a leaked marketing document by the Arnelle group.

  • The firm executed the highly controversial $1 million Pepsi logo redesign in 2008.

  • This document called Breathtaking recorded all that went into designing the new Pepsi Blue.

  • In it, the company explains its diverse inspiration.

  • The Hindu tradition of numerical harmony as spatial organizing.

  • The Vitruvian Renaissance, the elements of energy.

  • Rene Descartes' La Geometrie.

  • And even the Earth's magnetic fields.

  • At first, the media was all over it.

  • But the soda has seen steady sales since.

  • Rebranding is core to Pepsi.

  • Change is part of its DNA.

  • And it's part of what makes the company so successful.

  • It's always exciting.

  • It's innovative, and innovation is a part of its basic brand personality.

  • That is what it's selling.

  • It's selling excitement, warmth, young.

  • And therefore, it needs to change to be authentic to its brand.

  • In the case of Coke, it is wholesomeness, America, joy, very down-to-earth kind of an appeal.

  • This central difference is manifested in the brands' mascots.

  • Coke is Santa Claus and polar bears.

  • Pepsi is Michael Jackson, Britney Spears, and who could forget, Kendall Jenner.

  • Pepsi's brand essence involves change.

  • Therefore, it must change.

  • And that change, I don't think it's necessarily a negative since that is very much a part of its Bassano.

  • Coke tried to change once.

  • Introducing the new taste of Coca-Cola.

  • It doesn't have the zazz that you need when you want a coke.

  • Very disappointed, I think we've lost the American tradition.

  • For Coke loyalists, it was a departure.

  • It signified a violation of what drinkers had come to expect: sameness, consistency.

  • Coke found it was more important to keep their existing customers happy rather than find new ones.

  • And that's the bigger picture here.

  • Coke isn't after Pepsi's customers, and vice versa.

  • And the public may perceive a rivalry between the two brands when in reality, the two seem to coexist quite peacefully.

  • Remember that logo that kept changing?

  • It's part of that very same strategy.

  • Pepsi has set its sights on a particular customer, one that embraces change.

  • So, practically, the opposite of Coke's target.

  • I would always go for a Coke over Pepsi because it's just the classic thing that we always had growing up.

  • When we ordered pizza, we had coke with it.

  • It's classic.

  • Despite any notion that Coke and Pepsi are one and the same, they're courting a totally different soda drinker.

  • A 2016 study by two Emory professors, Jagdish Sheth and Anthony Koschmann, showed that each brand has an insanely loyal base.

  • Coke retained 94.4 percent of its loyal households from one quarter to the next.

  • Pepsi kept 91 percent.

  • I feel like a traitor.

  • I feel like I've let down generations and my ancestors when I switch.

  • Now, I feel silly for having this undying loyalty to Coke.

  • Almost, now that I taste Pepsi, but Coke is just where my brain goes when I'm like...

  • "Okay, it's time for a fizzy bev."

  • Today, Pepsi and Coke market to the soda drinker who matches what they stand for.

  • In other words, there is no rivalry.

  • So, what's your pick?

  • Is it because of taste or something else?

  • Let us know in the comments below, and don't forget to like and subscribe.

This is Pepsi's 1905 logo.

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