Let’s start with defining what brand equity is:
Brand Equity — the value, both tangible and intangible, that a brand adds to a product/service; the added value a brand name identity brings to a product or service beyond the functional benefits provided.

Examples of products with excellent brand equity include Google, Nike and of course Starbucks. In fact, I myself have been known to say something to the effect of, “Hey, do you want to go get a Starbucks?” Perhaps you’ve said, “Just Google it.” In instances such as Starbucks and Google, the brand name itself has surpassed the brand and become a commonplace term for an action or umbrella product. [See "google" in the dictionary, folks.]

One ongoing battle that has been waging for years is the one that exists between Pepsi and Coke, or formally known as Pepsi Cola and Coca-Cola. There are plenty of variables that could influence any particular consumer, including taste preference, packaging preference and availability within a particular market. From the polls I’ve seen, usually (and I use that term very loosely, people) Coke tends to score better than Pepsi in terms of consumer preference. The ratings, however, are extremely close. For example:

“An online Tribune poll revealed a virtual dead heat in the great Coke versus Pepsi debate. Of the 346 votes cast, 50.87 percent took Coke and 49.13 percent went with Pepsi. Pepsi has demanded a recount.”
- Credit East Valley Tribune, Phoenix AZ

All that said, we still don’t know the answer: who has the most brand equity? Coke or Pepsi? If there’s one thing I’ve learned over the years while working at Zoom Creates, it’s that doing a rebrand is a big deal. If the company we are rebranding has any brand equity at all, it will be important to keep some elements of the original brand in order to maintain familiarity. Taking a brand that is easily recognized and people feel comfortable with and rebranding to the point of no recognition at all would most certainly be a bad move. Look at the similarities among all rebrands over the years for both Coke and Pepsi [see image at right].

By comparing the timeline of each brand, it is clear that Coke has held tighter to it’s original concept that Pepsi has, but whether or not that directly affects the sales is unclear. What is clear, however, is that by looking at the chart, we are seeing two entirely different branding strategies: Pepsi has been changed significantly over the years, possibly to keep up with the times or to keep the look fresh and youthful. Coke, on the other hand, has made itty bitty changes spanning decades and the mark today is strikingly similar to what it was in 1887.

I can only speak for myself when I say that I have more respect for the Coca-cola brand. It strikes me as stable and unchanging through recessions, wars, times of peace, president after president. To look at the evolution of the Pepsi logo gives me the feeling that the mark is lost and even after more than 200 years is still searching to “find itself”. While I admire their ongoing efforts, I feel like shouting, “just PICK ONE already!”.

Feel free to leave your opinionated comments below if you are compelled to do so. How do you feel about the strategies of each brand? Do you think it has helped them over the years or not? Which strategy do you feel is most effective?