The Relationship between Market Share of USA Carbonated Soft Drink Industry and Advertising Spending

Abstract

This literature review examines the complex and evolving relationship between advertising expenditure and market share within the U.S. carbonated soft drink industry. Utilizing visible data from Coca-Cola, Pepsi and Dr Pepper in recent years, it analyzes the correlation between advertising expenditure and market share data. The findings reveal a modest positive correlation, indicating that advertising plays a relatively important role in maintaining and boosting brand position. In addition, evidence of potential development of substitute products show that brand competition is strong and fierce. Moreover, digital channel advertising demonstrates a growing effectiveness compared to traditional media. Furthermore, this paper investigates the existing scholarly research to examine the well-documented yet evolving relationship between advertising expenditure and market share in the U.S. carbonated soft drink industry. By critically evaluating the methodologies and conclusions of prior research, this study provides an integrated understanding of how advertising strategies have historically influenced market dynamics. Furthermore, evidence of potential entry of subsititute products indicates that brand competition is increasingly strong and fierce.