preview

Case Study : The Pepsi Company

Good Essays
Open Document
The Pepsi Company In 1898, Bradham Caleb, a pharmacist, experimented using different chemical substances from spice, juice, and syrup. Eventually, he succeeded by inventing Pepsi-Cola (“The Pepsicola Story”). “The Pepsicola Story” article reported that Bradham enhanced his invention by adding mixtures of vanilla, kola nut, rare oil, and carbonated water. From a fountain in his shop, Bradham sold the mixture to people and it became popular. The customers named the product Brad’s drink, but he later renamed it Pepsi-Cola (“The Pepsicola Story”). Due to product acceptance and an increase in sales, Bradham formed the Pepsi Company in 1902 (“The Pepsicola Story”). His business continued to grow and he introduced the bottling concept to make…show more content…
Their pricing strategy focuses on consumer satisfaction and acceptance (“Pepsi Pricing Strategy”). For instance, Pepsi partnered with Walmart to offer quality drinks at a cheap and affordable price to customers (“Pepsi Pricing Strategy”). In contrast, Coca-Cola’s products cost more at stores, fast food centers, and malls. They offer similar or lower quality products at higher costs. Pepsi Company produced Pepsi-Cola product for 65 years before they diversified into the production of food items and brands (“The Pepsicola Story”). They produced chips brands like Lay’s, Doritos, Fritos, Cheetos which became popular among the children and young adults. They also produced Quaker oats (“The Pepsicola Story”). In fact, Pepsi’s largest profit or income comes from food brands (“Pepsi’s 22 Billion Dollar Brand”). Lay’s is the second most profitable brand in the Pepsi Company. In 2011, due to its popularity and consumer acceptance, Lay’s generated an income of $9 billion from sales worldwide (“Pepsi’s 22 Billion Dollar Brand”). Another food brand, Doritos, posted large profits to become the second most profitable food brand (“Pepsi’s 22 Billion Dollar Brand”). “Pepsi’s 22 Billion Dollar Brand” article reported that Doritos broke the $1 billion sales in the early 1990’s and this brand’s popularity has continued to grow at a rate of 7.25%. The Quaker Oats brand differs from the other
Get Access
Related
Get Access