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23 July 2026

Marketing Strategy

What the Pepsi challenge teaches founders about better products

If growth is disappointing and your answer is to keep improving the product, Gerard suggests studying the Pepsi challenge. Pepsi proved that people preferred its taste in blind tests, then told the market exactly that. It made little difference, because taste is rarely why people choose a cola. People buy for what a product makes them feel, who it helps them become, what it lets them achieve. History is full of markets where the better product lost. Founders find comfort in product work because it feels real: hours at night polishing features is honest effort. Whether it moves sales is another question. If your product already solves a real problem, the next gain probably sits in how you position it, and the marketing may matter more than the next feature.