Final answer:
Vote splitting amongst Coca-Cola candidates could lead to a Pepsi candidate winning an election for Soft Drink Commissioner due to unified support from Pepsi voters. Brand loyalty and significant advertising budgets are factors in the beverage industry that contribute to the dominance of established brands like Coca-Cola and Pepsi.
Step-by-step explanation:
The scenario described presents an election for Soft Drink Commissioner with one candidate representing Pepsi and four representing Coca-Cola. Despite the apparent popularity of Coca-Cola based on the number of candidates, the Pepsi candidate might win due to what's known as 'vote splitting.' Vote splitting occurs when similar candidates divide the support from the same group of voters (in this case, Coca-Cola supporters), allowing a candidate with unified support (the Pepsi candidate) to win the majority.
In addition to the vote-splitting issue, factors such as brand loyalty, market orientation, and advertising budgets play pivotal roles in the beverage industry. A strong brand name and significant market share can be protective against new competition, making it hard for new entrants to gain a foothold. This concept relates to the broader business and economic principles of market structures and competition.