🧠 The Pepsi Challenge

Hey there,

Welcome back to the 61st edition of Brandish,

Your guide to crafting an iconic brand.

If I went up to 10 random people on the street and had a can of Pepsi in my left hand and a Coke in my right…

…Then told them they could have whichever one they preferred…

…If they ignored the fact that a complete random stranger is handing out soft drinks on the street…

9 out of 10 times they would pick Coca-Cola.

Back in the 80s, there was a blind taste test called the “Pepsi Challenge,” where people were asked to choose which cola tasted better–without knowing which was which.

The result?

The majority picked Pepsi.

But then, why does Coke consistently outsell Pepsi worldwide?

That’s exactly what I’ll be answering in today’s newsletter.

So without further ado,

Kick back,

Grab your Brez,

And let’s dive into it.

The Pepsi Challenge

In the early 2000s, neuroscientist Read Montague decided to take the Pepsi Challenge out of the supermarket and into the lab.

His team asked volunteers to drink Coke and Pepsi, just like in the original test, but this time while their brains were being scanned in an fMRI machine.

(basically an MRI but for your brain)

When participants didn’t know which drink was which, their preferences were split.

 Pepsi and Coke came out neck-and-neck, taste-wise.

But when they were told which cola they were drinking before the sip, people overwhelmingly said they preferred Coke, and the scans backed it up.

It turns out that when participants saw the Coca-Cola label before taking a sip, the part of their brain responsible for decision-making, memories, and self-image (the prefrontal cortex) lit up like a firework. 

Coke wasn’t just a drink anymore—it was a feeling.

So, what's going on here? 

The brain was linking memories, emotions, and past experiences to Coke, all while completely bypassing any logical thinking.

Brands Are Shortcuts for the Brain

Turns out branding isn’t just about making logical decisions.

When we think about buying something, our brains aren’t meticulously weighing the pros and cons of every option like a well-oiled machine.

Nope.

The brain is lazy—and efficient. 

It loves shortcuts.

Brands act like taking shortcuts for decision-making.

Think about it—every time you reach for a Coke, McDonald’s fries, or that familiar blue bottle of Tide, you’re not consciously weighing whether they’re the best choice.

You’re going with what feels right because it triggers a memory, an emotional cue.

Your brain’s like, “Yup, this is the one,” before you even fully register what you’re doing.

This is where dopamine comes into play.

Every time you pick the familiar brand over a lesser-known competitor, you get a tiny dopamine hit.

When you see that red Coca-Cola label or the McDonald’s golden arches, your brain doesn’t just see a product.

It’s firing off a cocktail of dopamine, memory, and emotional connections.

You’re not buying a soda or a burger—you’re buying a feeling.

And that’s why brands with strong emotional connections tend to win, even if the product itself isn’t objectively better.

The Power of Perception

It’s crazy how much our braids rely on visual cues to determine what we like.

During another challenge like the Pepsi challenge called the “Wine Challenge”.

They gave the sommeliers a glass of white wine, but dyed it red with an odorless, tasteless dye.

And the experts swore it was red wine.

They were describing it with the “rich” and “fruity” flavors of a Merlot.

But the reality is…

Their brains were duped by the color.

And here’s the thing—that happens all the time in branding.

You don’t just see a Coke and think “cola.”

You see the red can, the iconic script, the history, the memories tied to family barbecues or summer afternoons, and suddenly, that drink tastes better.

The brown color, the fizz, even the sound of opening a can—all these sensory cues build a brand experience that’s much bigger than the product itself.

It’s why Crystal Pepsi, Pepsi’s attempt at a clear cola in the early 90s, was an epic fail.

Even though it was essentially the same formula, people couldn’t get past the clear liquid.

It didn’t look right.

It didn’t feel right.

It was like looking at your favorite dish with all the wrong ingredients. 

The visual cue was off, so the brain rejected it.

Why We Love Brands

At the core, brands aren’t built by rational thoughts. 

They’re built by memories, emotions, and associations that play out in our unconscious minds.

We’re selling feelings, not products. It’s why Apple can charge a premium for phones that, on paper, might not be that different (or worse) than their competitors.

Or why Nike can slap a swoosh on a plain white t-shirt and suddenly it's worth $50.

People want to feel connected to something larger than themselves.

They want their choices to say something about who they are, or how they see themselves.

The product is secondary to the narrative that the brand is telling.

That’s why brands like Coke, Nike, or Apple don’t just have customers—they have fans.

They’ve built an emotional ecosystem around their products that taps into something deeper than features and benefits.

So how can you apply this?

Start thinking about what your brand means to people, not just what it does.

How can it trigger the right memories, feelings, and connections that go beyond the product itself?

At the end of the day, building a strong brand is about making sure that every time someone sees your logo, they feel something.

Wrapping Up

The Pepsi Challenge taught us that branding isn’t about logic—it’s about how people feel.

We make decisions based on memories, associations, and those little dopamine hits that brands give us.

Coke may not taste better than Pepsi in a blind test, but in the real world, it's the brand that sticks because it taps into something much deeper.

So, the next time you’re crafting a message or designing packaging for a product, remember—you're not just selling a thing.

You’re selling a feeling.

A memory.

And a shortcut for people’s brains to latch onto. 

Make sure it's one they'll want to revisit, again and again.

That’s all for this week!

Until next time,

Ankit