The Coke vs. Pepsi battle has been a branding rivalry that has defined soda sales for the past hundred years. What you might not know is that for most of that time, coming in at a close third place was Dr. Pepper … until now. This year for the first time, the brand inched out Pepsi to become the second most popular soda by sales in the US.
The victory is being credited to Dr. Pepper’s aggressive expansions into trying unusual flavors, their creative marketing programs and perhaps most importantly, the fact that they are not locked out of venues by exclusive distribution deals the same way that both Coke and Pepsi do to each other. Fast food brands have Coke or Pepsi. Stadiums generally pick one as well. As a result, both of those major brands keep one another’s growth held in check.
Dr. Pepper seems to have used this fact to grow its own market share, and in the process offer the rest of us a valuable business lesson. Sometimes, it’s better to be willing to work with everyone instead of relentlessly pursuing exclusive deals in an attempt to keep your competitors from doing the same.
