Brand War or Price War or Cost War?

Pepsi is barking up the wrong tree with Coke during a Price War.

How Carmike? 24 Pepsi is for people who like Pepsi and 24 Coke is for people like Coke. 

It's a Brand War! Not a stupid Price War. 

You're right. 

It's a Cost War. 

See Exhibit A and B below... 

How much do you think per box with color cost and handle design do you think

it costs Pepsi to persuade Pepsi Peeple to buy Pepsi at the same price as Coke?

Now how do you think it costs to persuade Coke Citizens to buy Pepsi?

Convenience always comes at premium. Never ever at a Discount. 

So, Pepsi's design with the handles, graphics and logos are driving their costs up to

make it look similar to Coke's price. 

On the other hand look how simple and visible the cans are to do the selling for Coke?

Would you rather see the real can and save money?

or

Would you rather pay a graphic designer that adds zero %  measurable value to sales for a Pepsi Can?

Coke split testing with liquid measurement and price measurement. 

Coke wants to sell at volume. 

 4 cans 1, 240 L for $2.00

or 

6 cans for 1,332 for $2.98

92 mL difference for $0.98

Contextual Conveniences pays!

*These cans are just neighbors. The rest of cans aren't on sale. 

12 pack, 1L, 2L, etc... 

#MerchandisingMonday

So Lesson Learned?

When you're selling, you are not selling packaging. 

You are selling the contents that the package is promoting. 

But, more important you're selling volume to price-perception that your competition cannot match. 

Why won't Pepsi sell basic and simple?

Pepsi can't sell Perception at a Price..

To keep things short and sweet. 
When you cut price. 
It comes back to bite you twice. 
The End.

Pricing is Power. Power is Perception.