Pepsi Case Study : The Introduction of Modern Marketing Strategy

PepsiCo, an enormous global Empire owning 22 brands that each bring in more than a billion dollars per year. We came with the Amazing Case Study of Pepsi/PepsiCo, ‘Pepsi case study- The Introduction of Modern Marketing Strategy’ .

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Pepsi Case Study

In the world of Cola, there are two big names ‘Coca-cola’ and ‘Pepsi’. Together they dominates one of our world’s most profitable industries but there can be only one king of any industry. For generations they competed for global supremacy in what came to be known as the cola war ultimately coke won but that’s no reason to count out Pepsi. PepsiCo remains an enormous global Empire owning 22 brands that each bring in more than a billion dollars per year. PepsiCo alone added revenue of 64 billion this success was not destiny or a stroke of luck it came about, thanks to a gruelingly slow string of events.

History of Pepsi

This is the story of Pepsi from humble Victorian beginnings to massive global expansion and how it eventually became the world’s sixth largest military it all began in the year 1886 with a man called John Pemberton. He was a complete charlatans masquerading as a doctor working as a pharmacist. He sold all kinds of concoctions that he claims would cure all kinds of ailments after years of experimenting with cocaine of wine and caffeine he developed a soft drink that he called coca-cola.

Seven years later another soft drink was invented also by a pharmacist Caleb Bradham. He was a fairly typical pharmacist but sometimes he would offer customers a refreshing homemade drinks. That quickly became popular throughout the town and it came to be known as Brad’s drink. Not only did it taste great, Bradham also claims for drink would aid digestion. Many people wanted for drink from the actual drugs he sold so he decided to go all-in, and Brad’s drink name in 1898 was renamed as Pepsi Cola.

Pepsi being the Greek word for digestion and Cola derived from a cola nut, a source of caffeine. It was an instant hit in 1903, he opened a warehouse and sold almost 8,000 gallons. Exactly next year, he sold almost twenty thousand by 1907 he was selling a hundred thousand gallons a year soon expanding to have hundreds of bottling plants. All was going smoothly and

Caleb Bradham was looking set to become one of America’s richest men but van atoll fell apart with the outbreak of world war. Brown Sugar was rationed and prices rose sharply cutting off a key ingredient of Pepsi Cola. Bradham’s company fell even quicker than it rose going entirely out of business forcing Bradham to take up Pharmacy once more. Pepsi was dead but the name of Pepsi name was not forgotten.

Pepsi’s Struggle to Revive

In 1932, Pepsi was revived by a man called Charles guff. Guff was an extremely wealthy executive, at one time accused of murdering his chauffeur. Nonetheless he was successful becoming president of a loft candy company in 1930. Apparently when he was elected as president, police had to intervene to stop it as it was becoming violent.

Loft was America’s biggest candy company owning a massive chain of stores from which faced old Cola. When Coca Cola company refused his demand of a massive discounts, he decided to revive Pepsi and sell fat instead. But even with loft candy behind it Pepsi just couldn’t compete with Coke. Since decades coke take an iron grip on the industry.

Guff went back to coke offering to sell the Pepsi brands to them at a knockdown price. Coke now had the opportunity to buy their greatest rival, an opportunity of a wasted in truth. It was the third time they’d been offered a chance to buy Pepsi but they just didn’t see any value in it. In 1920s prohibition had pushed Lee software, an industry to new heights and Coke had been the helm rejected by Coke.

Marketing Tactics to Re-introduce Pepsi

[The Most interesting part of ‘Pepsi Case Study’ Journey]

Guff went back to the drawing board he introduced their new bottle twice as large as those used by Coke. This combines with an innovative use of radio commercials gave new life to Pepsi.

In fact the first radio ad Virginia LAN in American history was used by Pepsi. It was a simple tune making clear VAT, a bottle of Pepsi was much larger than her competitors prices, much more illegal too. Great Depression had ravaged North America, this strategy paid off Coke. It was clear leave, a stronger brand but stuck in their ways was unable to change and adapt as quickly as Pepsi could.

Pepsi sponsored up-and-coming stars of Hollywood which itself was growing astronomically; one of the biggest names in Hollywood Joan Crawford even married CEO of Pepsi. The expansion of television they were equally effective with on-screen ads slowly but surely they had started taking of a market share of coke causing great concern to their rival.

The big part of strategy was specifically marketing to black people recognizing that other corporations largely neglected the black community. They employed all kinds of tactics from hiring all black sales teams to running ad campaigns featuring black scientists for a corporation. To do this in mid 1940s and 50s was a big deal and a big risk but it paid off the boost. They got from these campaigns held them surpass coke in markets like Chicago and more. As they grew the more aggressively the advertising campaigns were performing. But when it came to international expansion they simply couldn’t compete, sure Pepsi had long presence outside of the US but it was nothing like that of coke.

Pepsi conceived of a way to tap into a new market the Soviet Union ABBA time trade where the Soviets was miniscule. In fact, no capitalist product had ever been legally sold there; but It was undeterred by persuading US diplomats to introduce Soviet officials to the drink. They achieved what many thought to be impossible it took ten years of negotiation but eventually Pepsi Cola was introduced to the Soviet Union.

A feat of rival brands could only dream of, as the Soviet currency was basically worthless. Pepsi instead exchanged their products for commodities at first vodka but soon from military equipment in time Pepsi received seventeen submarines, a frigate cruiser and an entire destroyer from a Soviet Union by some measurements. This makes Pepsico with largest Navy on earth in the mid-1980s.

Pepsi came genuinely close to overtaking coca-cola. They had an almost equal market share of coke thanks to decades of innovation. Later in 1985, emerged another wave of fortune coke altered the recipe in what is being considered the greatest PR tragedy of all time. Coke faced huge criticism and a major decline in sales, Pepsi then became number one selling cola worldwide proclaiming triumph in the cola fight. But realizing their Mistake, coke soon reintroduced the old formula reclaiming their spot as number one at the end of a decade.

The brand Coke is better in blind taste trials. People tend to prefer Pepsi but in tests, where participants know which drink is which, people tend to prefer coke. This has been well studied. Something about the actual branding of coke causes people to enjoy the product more than they do. It was for but a brief moment about Pepsi, was on top yet It still went on to do some incredible things for a while.

They owns KFC, Taco Bell, Pizza Hut and Wilson Sporting Goods. They already own some of the best-known premium brands though trying to evolve. Even today, PepsiCo remains only surpassed by coca-cola being active in almost every country employing more than a quarter million people and is now the Biggest Multinational Food and Beverages Corporations. The Marketing tactics in the journey of Pepsi Case Study, glorifies us how Amazingly they were introduced and they are still be followed.

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