True, but at the point when a competitor can say we sell the exact same product made in the same factory on the same lines. But we charge less, branding isn't as important. In fact your brand can work against you.
I dont quite agree with that statement. If thats the case, what stops Pepsi from taking over Coca Cola's marketshare? In fact in blind tests, its very hard to tell which is what b/w coke and pepsi.
But, Coke commands the marketshare? Why? I think its their branding.
Coke and Pepsi may be similar, but they are not the same product made in the same factory.
Who are they getting to do these blind tests? Coke, Pepsi, and RC cola have distinct flavors -- the generics do too, although I don't have enough experience to identify them. Cans, bottles, and fountains don't taste the same either. Branding and affinity certainly influence which vendor is preferred, but the drinks are not the same.
> In fact in blind tests, its very hard to tell which is what b/w coke and pepsi.
As someone who aced the Pepsi Challenge when they were around, they have very different tastes (I don't like the way Pepsi tastes at all), and I'm not the only one.
In fact, the Pepsi Challenge existed solely because Pepsi thought theirs tasted so differently.