Alfred Steele, a former marketing executive at Coca-Cola, became the new CEO of Pepsi in the 1950s. Pepsi then introduced the "Beat Coke" theme and sold the 26-ounce bottle, targeting families, while Coca-Cola stuck with its 6.5-ounce bottle. Pepsi later began marketing itself to a new demographic, young people. This led Pepsi to reduce Coca-Cola's lead to a 2 to 1 margin. Pepsi then acquired larger, more modern bottling facilities. This increased competition and both groups began adding new soft drink brands. Pepsi merges with Frito-lay to become PepsiCo. Pepsi became such a competitor to Coca-Cola that Coca-Cola didn't even mention Pepsi's name at meetings. Pepsi relaunched the Pepsi Challenge again to show consumers that they preferred Pepsi and this increased their sales tremendously. Pepsi is now the leader in grocery stores, leading Coca-Cola to implement discounts and renegotiations with franchise bottlers. In an attempt to turn the situation around, Coca-Cola got a new CEO, Roberto Goizueta. Coca-Cola cut production costs, doubled advertising expenses, and sold off most of its non-CSD businesses. Diet Coke was introduced and became a phenomenal success. The central problem lies in the ability to diversify revenue streams. To achieve this both companies had to look for alternative ways to compete more effectively and succeed. I suggest keeping up with the trends and expanding the international sector as well. By diversifying their