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CS-115 Cola Wars 1975 Pepsi Challenge v05

[Case Studies] CS-115 Cola Wars 1975 Pepsi Challenge
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 MatrixDistributions Simulate Market GroupBy ConditionalLabel Assigner Rule Engine Row Splitter Scale Purchased Simulate Market Concatenate 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 MatrixDistributions Simulate Market GroupBy ConditionalLabel Assigner Rule Engine Row Splitter Scale Purchased Simulate Market Concatenate

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Created by: Berlin
Created at: 2018-12-10
On NodePit since: 2021-02-05
Last update: 2024-04-18
Created with KNIME version: v4.3.0

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