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Thoughts on the soda market, Pepsi
and Josta's place in history
Soda
makers offer a pretty easy to make, zero overhead
product. It is water, mostly, with a bit of flavoring
and sweetener in it, but ultimately they are selling
water. As simple as the design and manufacture of this
product is, there is a huge amount of secrecy
surrounding the formulas for the syrups that flavor
sodas. These formulas are highly-protected corporate
secrets, kept locked away deep inside company walls and
entrusted to a very few individuals. There are probably
some classified government documents that are more
easily accessible than the formulas that float around
Coca Cola and PepsiCo headquarters. It almost seems
absurd that such panic could surround a simple syrup
recipe, probably because it is absurd. PepsiCo is a
multi-billion dollar business that rests on and exists
solely based on a flavored water beverage that makes
people fat. But, we love it. At least some of us do; we
all have our preferences when it comes to sodas. In the
end, do preferences even matter? When you visit a
McDonalds, for example, they carry Coke and have no
PepsiCo products at all. Even if you prefer Pepsi, there
is not a lot you can do about it while at the mercy of
your chosen restaurant.
Despite
the frequent lack of choice consumers have, companies
like PepsiCo spend millions and millions on advertising
– but does it really matter? I know what I like best,
and no amount of television spots or banner ads in my
web browser are going to change that. People like what
they like, so why does Pepsi try so hard? It is all
about competition. The other guy does it, so they have
to do it more, do it better. The outcome might not
ultimately sway the market as much as exclusive deals
with other retailers, but the effort is made nonetheless
– and will continue to do so until such a time when
people no longer drink sweet and fizzy beverages like
Pepsi. I may prefer
Josta soda to Pepsi, but that does not matter much in
the eyes of a product manager or the marketing division
of Pepsi. It is a matter of what they feel is trendy in
the current market, which they are usually behind or
ahead on by a few years. Josta was ahead of its time,
Pepsi clearly missing out on the current energy craze.
And beverages like Pepsi Jazz, well, I’m not sure that
trend will ever make its rounds. Hopefully, someone
inside Pepsi has an accurate vision with good timing and
chooses to give Josta another shot.
Updated on 5/31/2011 |
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