Latest / The Marketing Funnel Podcast with Fexingo: Awareness, Interest, Decision, and Action Stages / How the AIDA Model Explains a Rivalry The Cola Wars Through the Funnel
Transcript
- Lucas: So the AIDA model — Awareness, Interest, Decision, Action — is one of those frameworks every marketer learns in their first year. But a lot of the time it's taught with hypotheticals. I want to ground it in a real case today, and I can't think of a better one than the Cola Wars. Luna: Coca-Cola versus Pepsi. That rivalry is basically a case study in the entire marketing funnel, isn't it? Lucas: Exactly. And what's interesting is that both companies actually followed the AIDA stages at different points, sometimes deliberately, sometimes by accident. Let's start at the top — Awareness. Lucas: Coca-Cola had awareness locked down by the mid-20th century. They were the default cola. But Pepsi needed to break through. In the 1970s, they were running at something like a one-to-six ratio in market share against Coke. So they did something radical. Luna: The Pepsi Challenge, right? The blind taste test. Lucas: Exactly. In 1975, Pepsi started setting up tables in malls and shopping centers, offering people two unlabeled cups and asking which tasted better. And people kept picking Pepsi. Pepsi turned those results into commercials. That was a pure Awareness play — they weren't just saying 'try Pepsi,' they were creating a memorable, shareable experience that got people talking. Luna: And it worked. I think Pepsi's market share went from like six percent to something like fourteen percent over a few years. Lucas: Roughly, yeah. By 1983, Pepsi was actually outselling Coke in supermarkets. Coke still dominated vending machines and fountains, but Pepsi had closed the gap significantly. That's the Awareness stage doing its job — getting people to even consider the alternative. Luna: So then we move to Interest. How did they build that? Lucas: Pepsi did it through lifestyle branding. They positioned themselves as the choice of a new generation. The 'Pepsi Generation' campaign in the 1960s and 70s was all about youth, energy, and being modern. Coke was seen as classic, almost your dad's soda. Pepsi made you feel like drinking it meant you were part of something current. Lucas: Coke, on the other hand, leaned into shared happiness. The 'Hilltop' ad from 1971 — 'I'd Like to Buy the World a Coke' — wasn't selling a product. It was selling a feeling. That ad built interest by associating Coke with global harmony and optimism. Luna: Right. Interest is really about emotional connection, not just product features. And both brands did that brilliantly, just in different directions. Lucas: Now Decision. This is where the funnel gets more competitive. In the Cola Wars, the Decision stage was fought on price and availability. Pepsi used aggressive pricing and in-store displays. Coke matched. But the most famous Decision-stage move was New Coke in 1985. Luna: Oh, the classic marketing disaster. Coca-Cola changed its formula to taste more like Pepsi because they were losing blind taste tests. Lucas: And consumers revolted. But here's the thing — the backlash actually forced people to make a Decision. They had to choose: classic Coke or nothing. When Coke brought back the original formula as 'Coca-Cola Classic,' sales surged. That was a accidental but powerful Decision-stage push. The controversy reminded everyone that they preferred the original. Luna: So the Decision stage isn't always rational. Sometimes it's about loyalty and identity. Lucas: Exactly. And then Action — the final stage. That's the purchase. Both companies invested heavily in distribution, vending machines, fountain contracts with fast food chains. Coke had McDonald's. Pepsi had Taco Bell and KFC, but also owned those chains at one point. The Action stage is about removing friction. If you're thirsty and there's a Coke machine, you buy Coke. If there's only Pepsi, you buy Pepsi. That's why the 'Pepsi Challenge' was so effective — it created immediate action at the point of trial. Luna: It's interesting how the AIDA model maps so neatly, but in reality the stages overlap. Like, the Pepsi Challenge built Awareness but also triggered immediate Action. Lucas: You're right. The linear model is a simplification. In practice, brands loop back. A purchase can reinforce Interest and Awareness. A bad experience can kill future Decisions. I think that's one critique of the classic funnel — it's too rigid. Luna: And today, with social media, the funnel is even more fluid. Someone might see a TikTok of someone doing a taste test, then immediately buy a 12-pack. That's Awareness and Action in one step. Lucas: Absolutely. But I think the Cola Wars still teach us something about each stage. For example, the Awareness stage today is about earning attention in a crowded feed. Pepsi's approach — creating a stunt — is still valid, just on different platforms. And the Interest stage is about storytelling, which Coke always had. Luna: So what's the takeaway for marketers listening? If they have a product competing against a dominant player, what should they focus on? Lucas: I'd say two things. First, find a weakness in the dominant player's Awareness — maybe they're not reaching a certain demographic. Pepsi went after young people. Second, create a reason to switch at the Decision stage. The blind taste test gave people permission to try something else. That's a classic challenger strategy. Luna: And if you're the dominant player, you defend by reinforcing emotional connection and making the Action stage as seamless as possible. Coke's distribution moat was huge. Lucas: Exactly. The Cola Wars are a reminder that the funnel isn't just about getting people in the door — it's about keeping them there. And sometimes, the most effective marketing is the simplest. Luna: Honestly, if today's episode sparked any new ideas or reminded you of a campaign you want to revisit, that's the kind of thing that makes this show worth making. If it felt worth a coffee to you, that link is buy me a coffee dot com slash fexingo. Lucas: Yeah, no pressure at all. Just a way to keep these conversations going without ads. And we appreciate every bit of support. Luna: Alright, back to the funnel. One more thing I want to touch on — how did the Cola Wars evolve with digital? Because the AIDA model still works, but the channels changed. Lucas: Great point. In the 2000s, both brands moved into viral marketing. Pepsi had the Pepsi Refresh Project in 2010, where they gave away millions in grants to community projects. That was an Interest play — positioning the brand as socially conscious. Coke had the 'Share a Coke' campaign, putting names on bottles, which was pure Awareness and Action combined. People searched for their names, shared photos online, and bought bottles. Luna: And now, with personalization and data, the Decision stage can be influenced with targeted ads. If someone searches for 'cola,' they might see a Pepsi ad offering a coupon. That's like a micro-Pepsi Challenge. Lucas: Right. And the Action stage has become even lower friction with one-click ordering and subscription models. You can imagine a smart fridge ordering Coke automatically. The funnel is becoming automated. Luna: But the core psychology hasn't changed. People still need to become aware, develop interest, make a decision, and take action. The Cola Wars just dressed it up in different decades. Lucas: Exactly. And that's why AIDA still matters as a starting point. It's a lens to diagnose where your funnel might be leaking. If you have high Awareness but low Interest, maybe your message isn't resonating. If high Interest but low Decision, maybe price or availability is the issue. Luna: So next time you're in a grocery store and see both Coke and Pepsi, you can think of it as a hundred-year battle fought across the AIDA stages. Lucas: Exactly. And maybe you'll appreciate the marketing behind that two-liter bottle a little more.