Not Everything That Counts Can Be Counted - Pepsi vs Coke

Everything that can be counted does not necessarily count; everything that counts cannot necessarily be counted.

Sometimes: Measurability ≠ Effectiveness

👇 is how Pepsi increased its market share 10% in 4 years and brought Coca-Cola to their knees.

Pre-1983, Pepsi’s market share always lagged Coca-Cola by a huge margin.

Coca-Cola was always the king of soft drinks.

In 1983, Roger Enrico, PepsiCos new CEO, wanted to dismantle Coke as king.

Roger did two very different things.

First, Pepsi paid Michael Jackson, then the hottest musical act, an unprecedented $5 million to perform a re-worked version of his then-hit “Billie Jean” in two television spots.

Second, Roger distributed the ad, and a few other new ads, in a way Coca-Cola would never do.

Pepsi - Everything That Counts Not Necessarily Counted

From Bob Pittman, then CEO of MTV:

When MTV launched, there were no ratings.

No one wanted to buy (advertisements with) us.

Except for Roger Enrico of Pepsi who observes all of the kids he knows watch MTV. Pepsi should be there.

He was my biggest advertiser. Coca-Cola said there are no ratings.

Finally, Neilsen rates us. We go back to Coca-Cola and they said sorry we have a rule that you need a 3 rating and 65% reach… We can’t buy you.

Roger continued to be my biggest advertiser.

Probably Coca-Cola didn’t buy a spot for the first 5 or 6 years on MTV.

And in that period of time Pepsi moved the market share the most its ever been moved before or after because they were somewhere their major competitor wasn’t.

Because Coke wanted measurability and Roger wanted results."

Coca-Cola reacted by creating New Coke in 1985, which turned out to be a monumental failure.

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