Northwestern University College of Business Education Laoag City Strategic Management Environmental Analysis: Pepsi-Cola Products Philippines, Inc. Submitted to: Sonders G. Lucas Submitted by: Cu, Princess Charlene V Daproza, Jema C Pacpaco, Charlene B Manayan, John Elmor M February 11, 2014 HISTORY The Summer of 1898 It was a hot and humid in New Bern, North Carolina. so a young pharmacist named Caleb Bradham began experimenting with combinations of spices, juices and syrups, trying to create a refreshing new drink to serve his customers. He succeeded beyond all expectations, inventing the beverage now known around the world as Pepsi-Cola. Pepsi 's Beginnings Caleb Bradham knew that to keep people …show more content…
The company moved its world headquarters to Manhattan, and continued to expand overseas into Latin America, the Philippines and the Middle East. At home, the company began experimenting with new bottle sizes, and for the first time began to package Pepsi-Cola in cans. But the post-war marketplace was changing rapidly. A new retail phenomenon called supermarkets was beginning to appear, and in combination with equally dramatic changes in the economics of producing soft drinks, Pepsi was forced to abandon its strategy of selling the soft drink for half the price of its chief competitor. Soon, the long-running "Nickel, Nickel" advertising was replaced with a claim more in keeping with energetic postwar America, "More Bounce to the Ounce." Throughout this period, Pepsi 's company president Al Steele 's constant traveling companion was his wife, known to America 's film fans as the glamorous movie star, Joan Crawford. Many believe that it was stylish and sophisticated Miss Crawford who moved the company away from its "value" theme of the '40s into the more sophisticated campaigns of the '50s. A new logo incorporating the "bottle cap" was adopted, and Pepsi was no longer advertised based on price, but as a
It’s the year 1893, Caleb Bradham a pharmacist by trade, was busy in his drugstore working on the perfect soft drink (Harding). His vision was to make a drink that would quench a person’s thirst on hot summer afternoons and desolate winter mornings. A drink that would bring people to congregate at his drugstore and increase business sales. So with excited enthusiasm he tinkered for weeks even though it seemed like years, with every two failures he would make one success. Finally, he tasted what then was known as “Brad’s Drink” and let out an exclamation that he had made it, a soft drink that made the taste buds ring with excitement (Prince). The history of “Pepsi” and its myriad use of advertisements to influence the new and young individual to purchase their product is over a century old, their battle with Coke for Cola supremacy was the primary reason for innovative advertising.
Pepsi is one of the most well-known beverage brands in the world. The Pepsi Bottling Group is a part of the larger multi-billion-dollar company PepsiCo. PepsiCo currently is the largest food and beverage manufacturer in the United States and one of the world 's biggest companies. They offer a plethora of carbonated drinks, waters, coffee, teas, energy drinks, and sports drinks to consumers. Notably Pepsi is known for distributing; Pepsi-Cola, Mountain Dew, Sierra Mist, Lipton teas, Starbucks, Amp Energy drinks, Gatorade, and Aquafina. Britannica Encyclopedia published an article on Pepsi 's early history titled "PepsiCo, Inc.". Pepsi was introduced in 1893 by Pharmacist Caleb Bradham as "Brad 's Drink" then later renamed "Pepsi-Cola" in 1898 (PepsiCo Inc.). Bradham was looking to invent a beverage that would help in digestion along with increasing energy. In 1902, the Pepsi-Cola Company was launched at Bradham 's Pharmacy, where he distributed the product. During World War I the United States experienced financial hardship resulting in Bradham filing bankrupt and selling his trademark brand (PepsiCo Inc.). After the war and the Great Depression, Charles Guth purchased Pepsi’s assets and Pepsi-Cola continued to expand and capture the spirit of America. Pepsi has contributed countless marketing campaigns, which have turned into the brand being recognized everywhere. Campaigns such as the "Pepsi Challenge" and "Pepsi Live for Now" have been successful campaigns in the company
Caleb Bradham, a pharmacist, created Pepsi to put into his soda fountain. As a result, many of his customers returned, and the pharmacy became a popular local hangout. His customers simply called the famous beverage, “Brad’s drink” (“The History of Pepsi-Cola”). By 1898, he named the drink Pepsi-Cola, and the first iteration of the Pepsi logo appeared (see figure 1) (“The History of Pepsi-Cola”).
It was not until after World War II that we begin to see the pendulum swing in the Cola wars. PepsiCo strategically became a serious contender when it began to sell its product in larger portions for the same price. By the 1960’s PepsiCo became a more serious and strong contender for the Coco-Cola company so much so
The competition between Coke and Pepsi reached its peak to become a real war battle by the year 1980. This war had affected the industry profit for both concentrate producers and bottlers, while the effect of bottlers was much higher. After the successful “Pepsi Challenge” (blind taste tests: sales shot up) in 1974, Coke countered with rebates, retail price cuts and significant concentrate price increases. Pepsi followed of a 15% price increase of its own. During the early 1990’s bottlers of Coke and Pepsi employed low price strategies in the supermarket channel in order to compete with store brands. The concentrate producers were always able to increase their profits by increasing the concentrate price, while the bottlers, especially the
Marketing strategies began to take broader dimensions as the soft drink industry continued to expand and became more complex. In 1976, Pepsi introduced the Pepsi Challenge in its campaigns, a moved that directly challenged Coca-Cola’s longstanding dominance. In 1985, responding to the pressure of the taste tests, which Pepsi always won, Coca-Cola decided to change its formula. This move set off a shock wave across America. Consumers angrily demanded that the old formula be returned, and Coca-Cola responded three months later with Classic Coke. Five years after the infamous Coke fiasco, the Coca-Cola
In 1950 Alfred N. Steele (1901–59), a previous VP of Coca-Cola Company, became chief executive officer. His emphasis on giant advertising and sales promotion expanded Pepsi-Cola 's net profit. In 1965 Pepsi-Cola converged with Frito-Lay, Inc., the creator of snack foods, for example, Fritos, Doritos, Lay 's potato chips, and Rold Gold pretzels. The recently developed organization
Pepsi –cola was started in the summer of 1898 in New Bern, North Carolina by Pharmacist Caleb Bradnham. PepsiCo Inc. started in 1965 with the merger of Pepsi-Cola and Frito-Lay. Since then, PepsiCo has continued to grow, adding new brands and product lines meeting the demands of the market. Throughout the years, they have strived and worked toward environmental sustainability. The ability to be financial stable gives PepsiCo the ability to give back and donate to those communities they are located in. PepsiCo’s mission to provide performance with purpose means delivering sustainable growth by investing in a healthier future for people and our planet. PepsiCo is continually increasing their triple bottom line.
During the 1950s, Pepsi evolved from the low cost price leader to a more lifestyle drink approach. For example, as Americans became more health conscious, Pepsi introduced slogans such as “The Light Refreshment” and “Refreshing Without Filling.” Other new advertising campaigns included slogans such as “Be Sociable, Have a Pepsi” and “Now Its Pepsi, For Those Who Think Young” to concentrate on a younger market. It was this younger target market and the post-war baby boom generation that set the stage for Pepsi’s long-lasting brand image. It all started with Pepsi advertiser Alan Pottasch, who recognized the different nature of the newest generation of consumers. Whereas consumers before the war were more cautious and price-conscious, the post-war baby boomer generation was carefree and hopeful. Pepsi once again capitalized on the changing environment, and under Pottasch launched the “Pepsi Generation” campaign in 1963. The campaign was an advertising breakthrough as it helped to set a new standard for advertising in America. The ads portrayed happy Americans living the American dream—with their Pepsis, of course. By associating its brand with youth and excitement, Pepsi-Cola became the forerunner of lifestyle marketing. Future campaigns continued to promote this brand image, with slogans such as “You’ve Got a Lot to Live. Pepsi’s Got a Lot to Give,”
It was 1886 in Atlanta, Georgia, the Civil War was finally over and war veteran and pharmacist Dr. John S. Pemberton was about to create what would become the world’s most popular sparkling drink. (“Coca-Cola History” 1) Pemberton was looking to make a profit and, since the temperance movement prohibited alcohol, recognized that there was an increasingly large market for soda fountain drinks (“The Invention of Coca-Cola” 1). Making a syrup that he brought to local pharmacies to mix with carbonated water, he invented Coca-Cola. During its first year on the market Coca-Cola averaged about 9 servings a day in Atlanta; now, daily sales average about 1.9 billion a day, worldwide (“Coca-Cola History” 1) Much of this widespread success is due to the exceptionally affective Coca-Cola advertisements used throughout the years. Pemberton, though he could make a good drink, was dreadful with marketing and advertisements. However, he had business partner Frank M. Robinson to help. Robinson came up with both the first slogan, “The Pause That Refreshes,” and the idiosyncratic Coca-Cola script (“The Invention of Coca-Cola” 1). Similarly, the original glass Coca-Cola bottle was extremely unique and has become one that the general public is extremely familiar with; it has become a classic. Hence, the argument behind this “A Classic Never Goes Out of Style,” advertisement. The advertisement depicts the distinct Coca-Cola bottle with popular classic icons on it and the phrase “A Classic Never
The Brand’s products are sold around the world hence the company finds customers all through out the world.. Pepsi manufactures markets and sells beverage concentrates and finished goods under various beverage brands. The company has extended its lineup since inception to offer top-selling choices the consumer demands and evolving lifestyle.
The industry I have chosen is the Pepsi-Cola Company. Pepsi is one of the world’s leading food and beverage companies. The company was founded by Caleb Davis Bradham, a New Bern, North Carolina pharmacist in the 1890s. Mr. Bradham became the first president of the company. Pepsi-Cola was formulated in 1898. He believed the drink was more than a refreshment but a “heathy” cola. In late 1902, the Pepsi-Cola Company was formed due to the rising popularity and demand for the Pepsi-Cola syrup. On June 16, 1903, “Pepsi Cola” became an official trademark. In 1910 Pepsi-Cola Company held their first Bottle Convention in
PepsiCo Inc. was founded in 1965 with the merger of two companies: Pepsi-Cola and Frito-Lay. Since then, it has become one of the world’s largest and most successful food, snack, and beverage corporations. PepsiCo Inc. has reports of sales of over $510 million and employs over 19,000 workers (Who We Are). Its products are provided and sold throughout the world. Many of their top products since the merger for the Pepsi-Cola Company are Pepsi-Cola (made in 1898), Diet Pepsi (1964) and Mountain Dew (1948). For Frito-Lay Inc., their top products consist of Fritos (made in 1932), Lay’s Potato Chips (1938), Cheetos (1948), Ruffles Potato Chips (1958), and Rold Gold Pretzels (1961). PepsiCo Inc.’s main headquarters are found in Purchas, New York, in the United States. PepsiCo is celebrating its 50th Anniversary this year since the merging of the two companies. Chairman and CEO, Indra K. Nooyi, has stated that, “PepsiCo’s first fifty years are now part of history – but our story is still being written. Reflecting on all we have achieved together, and on the infinite possibilities ahead, I am confident that it will be one for the ages” (Who We Are).
You’ll either love them or hate them, PepsiCo has grown over the years with different brands becoming a dominate company is the food and drink industry. In recent years they have been getting a bad reputation due to their unhealthy drinks and foods. In a 20 ounce bottle of Pepsi, there is 13.8 teaspoons of sugar. “Two out of three adults and one of three children in the United States are overweight or obese.” Studies have shown that the number of health problems that are related to obesity is due to the increased consumption of sugary drinks. High sugar drinks are being compared to cigarettes, along with fast food restaurants that are high in fat. I will discuss how PepsiCo became a leader in the beverage industry by looking into