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CS-115 Cola Wars 1975 Pepsi Challenge v03

Workflow

[Case Studies] CS-115 Cola Wars 1975 Pepsi Challenge

[Case Studies] CS-115 Cola Wars 1975 Pepsi Challenge <br> <br>The Pepsi Challenge was one of the most successful advertising campaigns in history. This Market Simulation analyzes how the campaign may have influenced the Willingness To Pay (WTP) of consumers. <br> <br>Uses the KNIME Extension: Market Simulation by Scientific Strategy - Community Edition <br> <br>A comprehensive description of this workflow with step-by-step instructions can be found at the Scientific Strategy website: <br>https://scientificstrategy.com/cs-115/

Case Study (CS-115) - Cola Wars 1975 Pepsi Challenge The Pepsi Challenge was one of the most successful advertising campaignsin history. This Market Simulation analyzes how the campaign may haveinfluenced the Willingness To Pay (WTP) of consumers. Competitive Story:The Pepsi Challenge was invented in Dallas to see if the South truly loved Coca-Cola for its taste, or if it was out of loyalty and good marketing. It turned out that amajority of Americans, not just Southerns, preferred the taste of Pepsi. Cokerelentlessly attacked the results, but the findings were indisputable. Worse still, itturned out a majority of 'Coke Drinkers' preferred the taste of Pepsi. Unable to bluntPepsi's momentum, Coke decided to focus instead on improving their ownproduct, and so launched 'New Coke'. Generate an initial Market ofCustomers based upon the USAMarket Share of 1975. Coke vsPepsi sales were about 60:40. In 1975 the Price of a 6-pack of12oz Pepsi cans was 88 cents.More Customers preferred Cokeover Pepsi, so Coke has ahigher mean WTP. Coke Customers correctly guesstheir favorite flavor about 47% ofthe time. Pepsi Customerscorrectly guess their favoriteflavor about 86% of the time. If the Customer guessedincorrectly, their raise their WTPfor the guessed Product by 10%.If the Customer guessedcorrectly then no change. The Pepsi Challenge helpedPepsi raise their Market Share byabout 6% vs Coke.Coke andPepsi 1975CustomerWTPPurchaseCoke vs PepsiPurchase Preferencevs Guess BestPepsi ChallengeGuess BestFlavorDid CustomerCorrectly SelectPurchased Cola?Top = CorrectBottom = IncorrectIncrease WTPof GuessProductNext PurchaseCoke vs PepsiAll CustomersWTP Matrix Table Creator (#1) MatrixDistributions (#2) SimulateMarket (#4) GroupBy (#5) Conditional LabelAssigner (#6) Rule Engine (#7) Row Splitter (#8) Scale Purchased(#9) SimulateMarket (#10) Concatenate (#11) Case Study (CS-115) - Cola Wars 1975 Pepsi Challenge The Pepsi Challenge was one of the most successful advertising campaignsin history. This Market Simulation analyzes how the campaign may haveinfluenced the Willingness To Pay (WTP) of consumers. Competitive Story:The Pepsi Challenge was invented in Dallas to see if the South truly loved Coca-Cola for its taste, or if it was out of loyalty and good marketing. It turned out that amajority of Americans, not just Southerns, preferred the taste of Pepsi. Cokerelentlessly attacked the results, but the findings were indisputable. Worse still, itturned out a majority of 'Coke Drinkers' preferred the taste of Pepsi. Unable to bluntPepsi's momentum, Coke decided to focus instead on improving their ownproduct, and so launched 'New Coke'. Generate an initial Market ofCustomers based upon the USAMarket Share of 1975. Coke vsPepsi sales were about 60:40. In 1975 the Price of a 6-pack of12oz Pepsi cans was 88 cents.More Customers preferred Cokeover Pepsi, so Coke has ahigher mean WTP. Coke Customers correctly guesstheir favorite flavor about 47% ofthe time. Pepsi Customerscorrectly guess their favoriteflavor about 86% of the time. If the Customer guessedincorrectly, their raise their WTPfor the guessed Product by 10%.If the Customer guessedcorrectly then no change. The Pepsi Challenge helpedPepsi raise their Market Share byabout 6% vs Coke.Coke andPepsi 1975CustomerWTPPurchaseCoke vs PepsiPurchase Preferencevs Guess BestPepsi ChallengeGuess BestFlavorDid CustomerCorrectly SelectPurchased Cola?Top = CorrectBottom = IncorrectIncrease WTPof GuessProductNext PurchaseCoke vs PepsiAll CustomersWTP MatrixTable Creator (#1) MatrixDistributions (#2) SimulateMarket (#4) GroupBy (#5) Conditional LabelAssigner (#6) Rule Engine (#7) Row Splitter (#8) Scale Purchased(#9) SimulateMarket (#10) Concatenate (#11)

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Nodes

CS-115 Cola Wars 1975 Pepsi Challenge v03 consists of the following 10 nodes(s):

Plugins

CS-115 Cola Wars 1975 Pepsi Challenge v03 contains nodes provided by the following 4 plugin(s):