The Value of a Brand: Coke vs. Pepsi

A brand that is well known is important to the products.  Brand recognition can help consumers pick out products they trust the quality of, especially when shopping for a new product they don't know much about.  A well-recognizable brand encourages more brand loyalty, which is an intangible asset which increases the value of the company and increases repeat purchases.  There is a way to value this asset, and Interbrand lists the most valuable brands yearly.

 http://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspx

One of the best examples of brand loyalty is beverages, especially between Coke and Pepsi.  Many people chose one of the two and never drink the other.  Coke has been number one on the list since their first listed in 2001.  But interestingly, Pepsi does not even come close on the list.  It is way down at number 22.

One reason could be the different messages each company.  Coke tries to appeal to family and other things  Americans value such as:

Santa

Family

Polar Bears

And, Patriotism 

Meanwhile, Pepsi seems to be targeting the youth generation, to be the new, cool drink by hiring celebrities to represent the brand.

Pepsi's approach obviously isn't bad; according to Yahoo! Finance, they had 34.91B Gross Profit.  However, their brand value and essence doesn't seem to be as deeply embedded in consumers.