For more than half a century, Coca-Cola and Pepsi have been fighting.

Until 1978, Pepsi won the first time and its sales in the United States surpassed Coca-Cola. Faced with the defeat, Coca-Cola hurriedly launched a new product, but it was useless and was rubbed on the ground by Pepsi for eight years.

How did Pepsi do it?

They invited a group of people to do street tests and poured two cups of unlabeled Coke and let them drink it. As a result, everyone said they like Pepsi more. Then, Pepsi was crazy about promoting this street test, and the advertisements bombarded for several months.

Do you think the methods are very low-level? Very pediatric?

However, it has made Pepsi's local sales soar 233% in half a year, surpassing Coca-Cola in one fell swoop.

By the mid-1980s, Coca-Cola spent 18 months, investing more than 4 million US dollars to develop a new formula. The new formula was recognized by more than half of consumers (market surveys), but was boycotted by at least one-third of old customers (actual situation). Coca-Cola company could receive 5,000 complaint calls every day, and in the second month it would receive 8,000 complaint calls every day, and in a month and a half, it received 40,000 complaint letters.

One of the complaints reads: "Can the Constitution and the Bible be rewritten? For me, changing the Coca-Cola formula is as serious as rewriting the Bible."

Coca-Cola is almost on the verge of losing its local market. In a helpless manner, Coca-Cola had to announce the resumption of production of the old formula, and unexpected situations occurred.

The old formula that has been suspended for more than a year has given unprecedented support when production resumes, and has achieved amazing sales in the short term. Many old customers deliberately drink several bottles of Coke every day to express their attitude.

feelings!

Only after losing and regaining it, Coca-Cola just fucked Pepsi again.

The stock god Buffett bought Coca-Cola stocks after that, and bought at the bottom, and grew wildly against the will of heaven and created an investment myth.

In the 1990s, Coca-Cola and Pepsi were crazily competing for overseas markets, with the fiercest battle between South America and the Soviet Union (Russia). Pepsi once led the way, but was defeated by Coca-Cola in various magical operations and could not get over it in the market. They immediately cooperated with local tyrants, and even turned the local government into their own partners.

This summer, the cover title of a certain issue of Fortune magazine was: "How does Coca-Cola kick Pepsi's butt?" The article quoted a sentence from Coca-Cola Chairman Guo Sida: "They (Pepisode) have become insignificant, and I no longer need to take them to heart."

In China, Coca-Cola's sales are twice that of Pepsi. In addition, Song Weiyang brought the Coke to disrupt the situation, and Pepsi can no longer hold on.

This is a global background. Pepsi not only launched a counterattack in China, but also launched an attack on Coca-Cola in South America and Europe.

...

Coca-Cola headquarters in the United States.

"This is the situation. Mr. Guo Sida, we must fight with all our strength," said Li Lisheng, president of Coca-Cola China, standing in front of the boss, "Coca-Cola must lower its price, otherwise sales will continue to decline."

Guo Sida, global president of Coca-Cola, is a Cuban. Like Li Lisheng, he was both a chemical engineer of Coca-Cola. He was at the peak of his life, fighting old rivals in various markets around the world, and even told reporters that "Pepsi Cola is insignificant."

Guo Sida lit a Cuban cigar and bit it in his mouth and said, "The price cannot be reduced. We should increase our advertising investment in the Chinese market, continue to enhance our brand image, and at the same time make friends with local governments in China."

Li Lisheng said: "However, most of Coca-Cola's publicity expenses in China need to be distributed with the cooperative companies, and our partners may not be willing."

Guo Sida vomited smoke and said, "Then change this situation! The headquarters sets up special expenses for China every year. This year, I can give you $2 million to specialize in advertising and event funds in China. Is this money enough?"

"Enough!" Li Lisheng was overjoyed.

"Then let it be, go and execute it immediately." Guo Sida said.

Li Lisheng left the president's office and immediately called China: "Plan the publicity and marketing activities immediately, the headquarters will pay for it, and spend all the 2 million US dollars within half a year!"

"Mr. Li, I must report the latest news to you." said on the other end of the phone.

"You talk." Li Lisheng suddenly felt something was wrong.

On the other end of the phone, he said: "Just just got the news, Pepsi has launched the latest channel incentives. They divide the dealer's discount rebates into three types: cash deductions, annual deductions and special rewards, and they are paid in cash!"

"What? Pepsi is crazy!" Li Lisheng was shocked.

Pepsi is really crazy. Even if it is a local beverage company in China, the rebates to dealers are settled in the form of goods. That is, how much Coke you sold for me, how much rebates I should give you, and the money can be used to offset the purchase of Coke. Now Pepsi directly gives money, distributes some money that month, and then distributes the remaining money at the end of the year. The specialty promotion activities will also be rebates immediately.

This channel stimulation method greatly increases the financial pressure of production enterprises. Companies with less money cannot withstand it, and the company's cash reserves may have to be several times larger.

Historically, Pepsi in the mid-1990s almost dominated the Coke market in Xikang Province using this method.

If Pepsi's price reduction sales were aimed at Coca-Cola. Then, now the channel cash rebate is aimed at Xifeng Company, which will open all its strength at both opponents!

Li Lisheng hurried back to see Guo Sida, and after reporting the situation, he said: "Mr. Guo Sida, there are only two ways to deal with it. Either reduce the price or fight a price war; or reduce the profits paid by China's headquarters every year, and fight a channel war with Pepsi!"

Guo Sida said with a headache: "Has Pepsi been stepped on the cat's tail?"

"I'm so anxious." Li Lisheng's recent Chinese progress has been rapid.

"Is this a Chinese proverb that dogs are forced to jump over the wall? It's very interesting," Guo Sida smiled. "You stay in the United States for a few days first. I have to have a meeting before making a decision. Well, you have to attend the meeting and explain the situation in the Chinese region clearly."

"Okay, but please come soon." Li Lisheng said.

Guo Sida lit the cigar again and said, "I will... cough cough cough cough!"

As soon as he took a chew of the cigar and said only two words, Guo Sida began to cough wildly, covering his mouth and almost coughing out his lungs.

"Sir, what's wrong with you?" Li Lisheng said with concern.

Guo Sida spread out his hand that was covering his mouth just now, looked at the blood in the palm of his hand, frowned and said, "I think I should go to see a doctor first."

Hospital examination results: Lung cancer... advanced stage!

Coca-Cola's global president was hospitalized for chemotherapy. Big events in the Chinese market instantly turned into small things. Coca-Cola's senior executives were instantly caught in intrigue, and everyone's eyes were staring at the throne of the global CEO.

Even the presidents of the Far East, Europe and South America began to inquire about the headquarters situation in various ways.

For more than two years, Coca-Cola's management was in a state of chaos. Although Guo Sida knew that his life would not last long and asked his deputy Ivester to take over the position, it would not help at all.

Guo Sida is the legendary ceo of Coca-Cola. He was ordered to take over the mess at the worst time of the company, and then turned the market value of Coca-Cola from US$4.8 billion to US$18.5 billion. In Coca-Cola, he is God, he is the monarch, and he is everything.

Just last year, Guo Sida often repeated a sentence from a shareholder: "You should never retire like the Pope!"

Guo Sida never thought about retirement. The people who are qualified and capable of threatening his status have been forced away by him. The rest are executors who only know how to act according to orders. Even when Guo Sida was in the late stage of lung cancer, he was reluctant to hand over the power, but let his deputy issue the order on his behalf.

So, after Guo Sida passed away next year, the CECO handover work of Coca-Cola was a mess.

Although his deputy Ivester successfully took office, he was not enough to convince the public and always lived in the shadow of Guo Sida. When he did his job well, people felt that he was not doing well enough, far worse than legendary ceo Guo Sida; if he did his job badly, it would be even more to blame. People would say that if Guo Sida was still alive, he would definitely not do this.

Ivester was a tragedy. During his term, he was criticized and even accused of having problems with his character. In order to force him to give way, other senior officials tried their best to disobey and deliberately do whatever they wanted, causing Coca-Cola's global business to shrink wildly. Pepsi, which almost couldn't make a comeback, took the opportunity to invade the market.

In just two years, Ivester's global CEO position was gone, and replaced by the Far East President Du Dafu, who was Song Weiyang who accompanied him to visit the museum.

From the fall of 1996 to the winter of 1999, Coca-Cola was a sick giant who had lost his ability to think and execute. He was slow to respond, inefficient, inadequate, and difficult to maintain his success.
Chapter completed!