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Pepsi: Ask For More!!
Pepsi: Ask For More!!
Pepsi
INTRODUCTION
At the 20's and 30's in the 20 century, Coca-Cola was the
absolute leader of soft drink market. Pepsi-Cola was just a new
brand at that time. Pepsi-Cola was thought of just a copy of CocaCola and its flavor is similar to Coca-Cola. So the Coca-Cola did
not take any importance for it. But later Pepsi-Cola developed fast
and became the strongest competitor to the Coca-Cola and now
Pepsi shared 40% of the market. It is a big threat to the CocaCola.
PepsiCo, Inc. is one of the world's top consumer product
companies with many of the world's most important and valuable
trademarks. Its Pepsi-Cola Company division is the second largest
soft drink business in the world, with a 21 percent share of the
carbonated soft drink market worldwide and 29 percent in the
United States. Three of its brands--Pepsi-Cola, Mountain Dew, and
Diet Pepsi--are among the top ten soft drinks in the U.S. market.
The Frito-Lay Company division is by far the world leader in salty
snacks, holding a 40 percent market share and an even more
staggering 56 percent share of the U.S. market. In the United
States, Frito-Lay is nine times the size of its nearest competitor
and sells nine of the top ten snack chip brands in the
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HISTORY:
Born in the Carolinas in 1898, Pepsi-Cola has a long and rich
history. The drink is the invention of Caleb Bradham (left), a
pharmacist and drugstore owner in New Bern, North Carolina.
The summer of 1898, as usual, was 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 because he
invented the beverage known around the world as Pepsi-Cola.
Caleb Bradham knew that to keep people returning to his
pharmacy, he would have to turn it into a gathering place. He did
so by concocting his own special beverage, a soft drink. His
creation, a unique mixture of kola nut extract, vanilla and rare
oils, became so popular his customers named it "Brad's Drink."
Caleb decided to rename it "Pepsi-Cola," and advertised his new
soft drink. People responded, and sales of Pepsi-Cola started to
grow, convincing him that he should form a company to market
the new beverage.
In 1902, he launched the Pepsi-Cola Company in the back room of
his pharmacy, and applied to the U.S. Patent Office for a
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the underlying issue. The facts are that each company is coming
up with new products and ideas in order to increase their market
share. The creativity and effectiveness of each company's
marketing strategy will ultimately determine the winner with
respect to sales, profits, and customer loyalty (98). Not only are
these two companies constructing new ways to sell Coke and
Pepsi, but they are also thinking of ways in which to increase
market share in other beverage categories. Although the goal of
both companies is exactly the same, the two companies rely on
somewhat different marketing strategies (98). Pepsi has always
taken the lead in developing new products, but Coke soon
learned their lesson and started to do the same. Coke hired
marketing executives with good track records (98). Coke also
implemented cross training of managers so it would be more
difficult for cliques to form within the company (98). On the other
hand, Pepsi has always taken more risks, acted rapidly, and was
always developing new advertising ideas. Both companies have
also relied on finding new markets, especially in foreign countries.
In the foreign markets, Coke has been more successful than
Pepsi. For example, in Eastern Europe, Pepsi has relied on a
barter system that proved to fail. However, in certain countries
that allow direct comparison, Pepsi has beat Coke. In foreign
markets, both companies have followed the marketing concept
by offering products that meet consumer needs (99) in order to
gain market share. For instance, in certain countries, consumers
wanted a soft drink that was low in sugar, yet did not have a diet
taste or image (99). Pepsi responded by developing Pepsi Max.
These companies in trying to capture market share have relied on
the development of new products. In some cases the products
have been successful. However, at other times the new products
have failed. For Coke, changing their original formula and
introducing it as New Coke was a major failure. The new
formula hurt Coke as consumers requested Classic Cokes return.
Pepsi has also had its share of failures. Some of their failures
included: Pepsi Light, Pepsi Free, Pepsi AM, and Crystal Pepsi. One
solution to increasing market share is to carefully follow
consumer wants in each country. The next step is to take fast
action to develop a product that meets the requirements for that
particular region. Both companies cannot just sell one product; if
they do they will not succeed. They have to always be creating
and updating their marketing plans and products. The companies
must be willing to accommodate their target markets. Gaining
market share occurs when a company stays one-step ahead of
the competition by knowing what the consumer wants. My
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Rise in popularity
During the Great Depression, Pepsi gained popularity following
the introduction in 1929 of a 10-ounce bottle. Initially priced at 10
cents, sales were slow, but when the price was slashed to five
cents, sales increased substantially. With 12 ounces a bottle
instead of the six ounces Coca-Cola sold, Pepsi turned the price
difference to its advantage with a radio advertising campaign,
featuring the jingle "Pepsi cola hits the spot / Twelve full ounces,
that's a lot / Twice as much for a nickel, too / Pepsi-Cola is the
drink for you," encouraging price-watching consumers to switch
to Pepsi, while obliquely referring to the Coca-Cola standard of six
ounces a bottle for the price of five cents (a nickel), instead of the
12 ounces Pepsi sold at the same price. Coming at a time of
economic crisis, the campaign succeeded in boosting Pepsi's
status. In 1936 alone 500,000,000 bottles of Pepsi were
consumed. From 1936 to 1938, Pepsi Cola's profits doubled.
Marketing:
In 1975, Pepsi introduced the Pepsi Challenge marketing
campaign where PepsiCo set up a blind tasting between PepsiCola and rival Coca-Cola. During these blind taste tests the
majority of participants picked Pepsi as the better tasting of the
two soft drinks. PepsiCo took great advantage of the campaign
with television commercials reporting the test results to the
public.
In 1996, PepsiCo launched the highly successful Pepsi Stuff
marketing strategy. By 2002, the strategy was cited by Promo
Magazine as one of 16 "Ageless Wonders" that "helped redefine
promotion marketing."
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INGREDIENTS:
Pepsi-Cola contains basic ingredients found in most other similar
drinks including carbonated water, high fructose corn syrup,
sugar, colorings, phosphoric acid, caffeine, citric acid and natural
flavors. The caffeine-free Pepsi-Cola contains the same
ingredients minus the caffeine.
The original Pepsi-Cola recipe was available from documents filed
with the court at the time that the Pepsi-Cola Company went
bankrupt in 1929. The original formula contained neither cola nor
caffeine.
The strengths, the weaknesses, the opportunities and the
threats of Pepsi.
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So you can see from the pipe-chart one that 41% of the
interviewees prefer the flavor of Peps-Cola. It is the most popular
one. Pepsi Company also produces the Diet-Cola to meet the
people who more concern their health. And it just changes the
design of the package of Pepsi-Cola.
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3) Besides the Diet cola for the ladies, we can have many other
new choices. For example, we can create a new kind of cola more
suitable for children. Maybe we can add the Vitamins or some
nutritious element that are necessary to children. Or we can
create a new flavor like mint-cola and the cola with very light
alcoholic which is more suitable for the adults.
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seen that every product has its slogan which also helps it to
promote because these slogans represent that product so every
company tries to create an attractive slogan. Talking about Pepsi
slogans so Pepsi has created many slogans from very beginning
when it was introduced, Pepsi has changed its slogan many
times. These slogans are:
Slogans
Conclusion
Being in such a tense competition (just like the brand Coca-Cola),
Pepsi-Cola should not take the direct and tough attack upon it.
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PEPSI COLA