Shop Talk

Cola truce? Coke and Pepsi trade niceties on Twitter

Cola rivals Coke and Pepsi gave their long-standing feud a rest last week after a user-provoked experiment on Twitter prompted the two pop makers to trade friendly greetings on the popular social networking service.

Coca-Cola responded first to a clever user’s message suggesting that the two make nice on Twitter, offering “A gracious (yet competitive) hello” to Pepsi. In return, Pepsi extended a Twitter-style olive branch of sorts to its competitor: “Can rivals and tweeps coexist? We’re willing to find out. ” Tweeps, for those unversed in the lingo, is a cutesy term for Twitter users.

The whole episode began with the single Twitter message sent by a digital media consultant from a web marketing firm called Amnesia Razorfish based in Sydney, Australia, but quickly grew as other users got in on the fun and repeated (or “retweeted”) the message to their own friends and followers across the social network.

Within three hours of the original message being sent, Coke had fired off its friendly response and even decided to add Pepsi to its Twitter network. Pepsi took a bit longer to respond but wasn’t far behind in returning the virtual handshake.

Considering both companies’ long-standing commitment to the whole cola-war marketing scheme, such a quick decision to take part in the digital truce may come as a bit of a surprise. But what’s probably more illuminating about the viral affair is that it shows two companies with deeply established brands adapting their marketing strategies to the world of social networking.

Whether the whole incident actually compelled anyone on Twitter to go out and buy a bottle of Coke or Pepsi is less important than the essential message it sends to consumers – namely, that their brands are still fun and youthful.

Moreover, as people increasingly turn to the Internet for information and entertainment, companies are being forced to accept that they have less control over what information gets to consumers. In such an organic environment, top-down brand management no longer seems to be a sustainable strategy.

Watching the flight to basics play out on Target’s shelves

Target has said its food and consumable items, like paper towels and toilet paper, are flying off store shelves, while its trendy clothes and home decor languish as newly thrifty shoppers avoid unnecessary spluges.

This past Saturday at a Target store in New Jersey, the diverging sales trends were evident.

While in the back of the store the clothing aisles were packed with merchandise, (but very few shoppers) the aisles in the front of the store — loaded with candy, shampoo and toothpaste –were picked over and buzzing with shoppers.

In some cases, if you wanted to buy soda or juice, you would have been out of luck.

Check Out Line: A short drink of soda

Check out soft-drink makers offering a smaller gulp.   Beverage Digest reported last week and the Wall Street Journal reported today that Coke and Pepsi bottlers are testing new bottle sizes in convenience stores to try to boost soda sales. (Both links need subscription to see the full story)   Both bottling systems have tests of 16-ounce and 12-ounce bottles, being sold alongside the familiar 20-ounce bottle.   One reason for the test is to get the price of a bottle back below $1.00. “The price points have gotten too high,” one Pepsi bottler told Beverage Digest.   Some consumers also think a 20-ounce bottle is too large, Beverage Digest said.   A Coke spokesman told the Wall Street Journal that the the test is part of a broader plan to increase soda sales by improving packaging.   Package improvements have become all the rage in the consumer products industry, as a combination of economic and environmental concerns have caused companies to rethink how they package their products.   Kraft Foods, for example, has revamped some of the packaging for products, including mayonnaise, making the design more attractive and also using less material, which makes the package lighter and less expensive to ship.   But back to soft drinks. If you are still really thirsty, take heart. Coke bottlers are also testing a 24-ounce bottle in some markets, according to Beverage Digest.   Also in the basket:   Linens ‘n Things files for bankruptcy   Walgreen April sales hit by early Easter   Big retailers scaling back expansion plans and shutting stores (N.Y. Times)