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The two firms remain the number one case study for marketing students on how to create a powerful  brand around something as humble



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The two firms remain the number one case study for marketing students on how to create a powerful 

brand around something as humble as brown carbonated water laced with caffeine and vegetable 

extracts. More recently they have become case studies for another reason: PepsiCo for its ability to 

spot consumer trends and adapt its business to a changing climate; Coca-Cola for failing to do the 

same, perhaps complacent due to its long history as the number one best-selling drink in the world. 

In early 2000 Coca-Cola's market capitalisation was about $128bn, almost three times that of 

PepsiCo. Fizzy drinks sales at both companies are flat in developed markets. The crucial factor in 

the differing fortunes of the two has been PepsiCo's diversification away from sugary 

carbonated drinks and the realisation that consumers were worrying more and more about 


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