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~;)ythe mid-1970s, the Coca-Cola Company was a lumbering giant.As the ;Siantstumbled, Pepsi Cola was finding heady triumphs.First came the ~epsi Generation." This advertising campaign captured the imagination of
~e baby boomers with its idealism and youth. This association with youth
'~d vitality greatly enhanced the image of Pepsi and firmly associated it ...lWith the largest consumer market for soft drinks. ~ Then carne another management coup, the "Pepsi Challenge," in which :~~parative taste tests with consumers showed a clear preference for Pepsi.JI\a:iscampaign led to a rapid increase in Pepsi's market share, from 6 to 14 I.'Perfor-
fmancereflected this.


Original text

•.••
~;)ythe mid-1970s, the Coca-Cola Company was a lumbering giant. Perfor-
fmancereflected this. Between 1976 and 1979, the growth rate of Coca-Cola >.~.
;;;~ft drinks dropped from 13 percent annually to a meager 2 percent. As the ;Siantstumbled, Pepsi Cola was finding heady triumphs. First came the ~epsi Generation." This advertising campaign captured the imagination of
~e baby boomers with its idealism and youth. This association with youth
'~d vitality greatly enhanced the image of Pepsi and firmly associated it ...lWith the largest consumer market for soft drinks.
~ Then carne another management coup, the "Pepsi Challenge," in which :~~parative taste tests with consumers showed a clear preference for Pepsi.
JI\a:iscampaign led to a rapid increase in Pepsi's market share, from 6 to 14 I.'
i
~cent of total U.S. soft-drink sales.
, -; Coca-Cola, in reaction, conducted its own taste tests. Alas, these tests
'lJi(dthe same result-people liked the taste of Pepsi better, and market share "'~ges reflected this. As Table 10.1shows, by 1979Pepsi had closed the gap
.;Coca-Cola, having 17.9 percent of the soft-drink market, to Coke's 23.9 ./, t. By the end of 1984, Coke had only a 2.9 percent lead, while in the . L . . store market it was now trailing by 1.7 percent. Further indication of _.~:diminishingposition of Coke relative to Pepsi was a study done by Coca-


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