Coca-Cola has embarked on a promotional blitz against its arch-rival Pepsi, as its looks to bounce back from disappointing sales surrounding its sponsorship of last year’s London Olympics.

The soft drinks giant, regarded by many industry observers as having been outmanoeuvered by Pepsi over in-store activity last year despite its mammoth above-the-line spend, has gone into overdrive with a huge increase in the number of price reductions being offered to shoppers.

In the four weeks to 20 January, the amount of promotions run by Coke leapt to 209, compared with 61 in the same period in 2012, according to Assosia. This is more than quadruple the 45 it ran in the same period two years ago.

Coke was responsible for nearly 90% of the promotions run by the two rival brands during the period, compared with a much more even split of 64% to 37% this time last year.

However, Pepsi is still being more heavily discounted, with an average saving of 43.1% against Coke’s 25%.

Volume sales of Coke grew by just 1.8% last year [Nielsen 52 w/e 13 October 2012), with Pepsi taking share thanks to 11% growth.

“There is a general feeling across the company that the Olympics didn’t have the massive impact they were hoping for and they are looking to bounce back,” said a former Coke executive.

”London 2012 may yet prove to have had an impact in the longer term for the brand, but it certainly hasn’t had the impact on sales in London and other areas they were hoping for.”

Coke has also been heavily backing the recent launch of its Arctic Home sustainability campaign with the WWF. This week it also launched a major ad campaign to celebrate the 30th anniversary of Diet Coke, with a return of the Diet Coke Break Hunk.

“It’s been a busy close and fast start to the year for the brand,” said a CCE spokesman. “We have maintained the momentum in the new year that has seen big news for Coca-Cola. These are great brand activation moments.”

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