INTRODUCTION

Pepsi is a carbonated soft drink produced and manufactured by

PepsiCo. The drink was first made in the 1890s by pharmacist
Caleb Davis Bradham in New Bern, North Carolina.
It was first introduced as "Brad's Drink" in New Bern, North
Carolina in 1898 by Caleb Bradham, who made it at his
pharmacy where the drink was sold
It was named Pepsi Cola, possibly due to the digestive enzyme
pepsin and kola nuts used in the recipe.
In 1926, Pepsi received its first logo redesign since the original
design of 1905. In 1929, the logo was changed again.

INTRODUCTION
In 1931, at the depth of the Great Depression, the Pepsi-Cola
Company entered bankruptcy - in large part due to financial
losses incurred by speculating on wildly fluctuating sugar prices
as a result of World War.
During the Great Depression, Pepsi gained popularity following
the introduction in 1936 of a 12-ounce bottle. Initially priced at
10 cents, sales were slow, but when the price was slashed to five
cents, sales increased substantially.
Pepsi encouraged price-watching consumers to switch, obliquely
referring to the Coca-Cola standard of six ounces per 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. From 1936 to
1938, Pepsi-Cola's profits doubled.

MAJOR BRANDS
The major brand categories owned by Pepsico, Inc. include Pepsi,
Frito-Lay, Gatorade, Quaker Oats and Tropicana. Each of these has
numerous other product offerings in their respective categories, both
U.S. and internationally. For example, the Pepsi-cola family includes
over two dozen beverage brands, such as Mountain Dew, Mug (root
beer) and several partnerships (e.g., Lipton ice tea). Quaker Oats
includes Rice-a-Roni side dishes, Aunt Jemima mixes and syrups, etc.
Pepsi
Diet Pepsi
Caffeine-Free Pepsi

Caffeine-Free Diet Pepsi

Pepsi Wild Cherry

Diet Pepsi Wild Cherry
Diet Pepsi Vanilla
Pepsi ONE

INGREDIENTS
Pepsi is made with carbonated water, high fructose corn syrup,
caramel colour, sugar, Phosphoric acid, caffeine, citric acid and
natural flavors. A can of Pepsi (12 fl ounces) has 41 grams of
carbohydrates (all from sugar), 30 mg of sodium, 0 grams of fat,
0 grams of protein, 38 mg of caffeine and 150 calories. The
caffeine-free Pepsi-Cola contains the same ingredients but
without 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.

ORGANIZATION STRUCTURE

ORGANIZATION STRUCTURE
At Pepsico, the managers and leaders have identified the
relationship that exists between themselves and the employees.
In this company, the leaders and managers usually use
information elements in supporting the employees' decision
making for improvement of the working condition.
Employee's involvement in decision making especially in regard
to their working conditions and environment is a key to
ensuring that a healthy culture is developed in an organization
Managers and leaders involve all levels of management as well
as the employees on the decision making process and they
always encourage open and participatory decision making
process.

ORGANIZATION STRUCTURE
Leaders and managers jointly perform the management
function which includes planning, budgeting, evaluating and
facilitating of organizational resources
While formulating the plans, employees are consulted and their
views incorporated in the overall plans of the company and
they also aid the managers and leaders in coming up with forecasted budgets for a particular period of operations.
Managers of Pepsico are efficient and carry out their
leadership functions effectively. This in turn motivates the
employees and they willingly follow the leaders. Good
leadership at Pepsico has been a major tool that has created a
culture of hard work and innovation

ORGANIZATION STRUCTURE
The company has also facilitated a good and safe working
environment for its employees and this has in turn improved the
workers productivity and commitment to the organization. The
relationship between the workers and leaders is interactive and
workers grievances relating to their working environment and
other labor related issues are well addressed

Trust has been developed between the management and the

workers as leaders are committed to their tasks just as workers
are. This maintains the culture of hard work and commitment
to goals and objectives

MARKETING STRATEGY
From the 1930s through the late '50s, "Pepsi-Cola Hits The
Spot" was the most commonly used slogan in the days of old
radio, classic motion pictures, and later television.
Pepsi utilized the services of a young, up-and-coming actress to
promote products.
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 results to the public.

MARKETING STRATEGY
In 2007, PepsiCo redesigned their cans for the fourteenth time,
and for the first time, included more than thirty different
backgrounds on each can, introducing a new background every
three weeks.
2008 Pepsi teamed up with Google/YouTube to produce the first
daily entertainment show on Youtube, Poptub. This daily show
deals with pop culture, internet viral videos, and celebrity
gossip. Poptub is updated daily from Pepsi.
Pepsi has official sponsorship deals with three of the four major
North American professional sports leagues: the National
Football League, National Hockey League and Major League
Baseball. Pepsi also sponsors Major League Soccer.

GLOBAL STRATEGY
A decidedly youth-oriented strategy, the campaign hoped to hook
young Baby Boomers while they were still young. In 1984 Pepsi
launched another long-running campaign, "The Choice of a New
Generation,
Pepsico invented a Pepsi package that is meaningful and has an
appealing communications tool for the latest generation of youth
that are not overwhelmed by media, music, or digital distractions.
The new global look launched in February with eight new package
designs across cans and bottles, and the campaign is unfolding in
a similar manner overseas. The can designs roll out one at a time
approximately three weeks apart to enhance the anticipation of
discovery and to pique the interest of collectors.

GLOBAL STRATEGY
The Pepsi can designs roll out one at a time, but the two-liter Pepsi
bottles will have three or four designs out at any given time.
The brand equity has to be consistent. There should be very few
differences around the world in how consumers feel about
Pepsi's fun, effervescent brand image.
The design campaign's goal is "sustainable discovery," where the
consumer audience is constantly intrigued and engaged.
Designers created the dozens of new and vibrant designs with only
a handful of blue and gray shades. Each design tells a story of
sorts and each can design has a unique website address on the
side of the can. These wed sites allow the web users to design a
digital billboard that will appear in Times Square, and also the
users can mix their own music online.

GLOBAL STRATEGY
In a survey, the pepsi consumers said that the only 3 brand
elements that should remain the same are-the Pepsi "globe," the
iconic Pepsi blue, and the familiar tilted Pepsi capital letters.
Television ad campaigns are reinforcing the globe-centric approach
by featuring a boulder-sized Pepsi globe in various settings
careening to and fro like a pinball. In the ads and on the front of
most of the new packages is the reassuring tag line: "Same Pepsi
inside, new look outside.
The consumer is looking for more variety and expecting more from
their brands. They want to have a dialogue with their favorite
brands

FOCUS STRATEGY
Although the company's revenues had increased marginally by
4% in 1996, the net income had witnessed a major decline
28.45% in the same period.
Analysts pointed at PepsiCo's lack of focus on its core operations
as one of the major reasons for its poor financial performance. In
its efforts to sharpen focus on its core beverage , and snack food
businesses, PepsiCo underwent a major restructuring by
spinning-off its restaurant businesses as an independent publicly
traded company.
In July 1998, PepsiCo acquired Tropicana, the world leader in the
marketing and production of branded juices, in its efforts to
strengthen its position in the non-carbonated beverages segment.

FOCUS STRATEGY
In its efforts to enhance the revenues from its beverages
business, PepsiCo acquired a majority equity stake in SBBC,
which emerged as one of the successful companies in the noncarbonated beverages industry after the launch of its brand
SoBe.

PepsiCo, acquired Quaker Oats, a leading food and drinks

company, in a deal worth $13.4 bn. In an all-stock deal, one
share of Quaker was swapped for 2.3 shares of PepsiCo, up to a
value of $105 for each Quaker share. According to analysts, this
acquisition was expected to increase PepsiCo's beverages
revenues significantly

SLOGANS

19391950: "Twice as Much for a Nickel"

1950: "More Bounce to the Ounce"
19501957: "Any Weather is Pepsi Weather"
19571958: "Say Pepsi, Please"
19581961: "Be Sociable, Have a Pepsi"
1961-1963: "Now It's Pepsi for Those Who Think Young"
19631967: "Come Alive, You're in the Pepsi Generation"
19671969: "(Taste that beats the others cold) Pepsi Pours It On".
19691975: "You've Got a Lot to Live, and Pepsi's Got a Lot to Give"
19751977: "Have a Pepsi Day"
19771980: "Join the Pepsi People (Feeling Free)"
19801981: "Catch That Pepsi Spirit"
19811983: "Pepsi's got your taste for life"
1983: "It's cheaper than Coke!"
19831984: "Pepsi Now! Take the Challenge!"
19841991: "Pepsi. The Choice of a New Generation"

SLOGANS

1984-1988: "Diet Pepsi. The Choice of a New Generation"

1988-1989: "Diet Pepsi. The Taste That's Generations Ahead"
1989-1990: "Diet Pepsi. The Right One"
1989-1992: "Diet Pepsi. The Taste That Beats Diet Coke"
19861987: "We've Got The Taste"
19871990: "Pepsi's Cool"
19901991: "You got the right one Baby UH HUH"
1991: "Yehi hai right choice Baby UH HUH" (India)
19911992: "Gotta Have It"/"Chill Out"
19921993: "Be Young, Have Fun, Drink Pepsi"
19931994: "Right Now"
19941995: "Double Dutch Bus"
1995: "Nothing Else is a Pepsi"
19951996: "Drink Pepsi. Get Stuff."
19961997: "Pepsi:There's nothing official about it"
19971998: "Generation Next"
19981999: "It's the cola"

SLOGANS

19992000: "For Those Who Think Young"/"The Joy of Pepsi-Cola"

1999-2006: "Yeh dil maange more" (India)
2003: "It's the Cola"/"Dare for More"
20062007: "Why You Doggin' Me"/"Taste the one that's forever young"
20072008: "More Happy"/"Taste the once that's forever young"
2008: "Pepsi Stuff"
2008: "epsi is #1
2008present: "Something For Everyone"
2009present: "Refresh Everything"/"Every Generation Refreshes the
World"
2009present: "Yeh hai youngistaan meri jaan"
2009present: "My Pepsi My Way (India)
2009present: "Refresca tu Mundo (Spain)
2010present: "Every Pepsi Refreshes The World"
2010present "Youngistan ka wow." (India)

P E P S I M A N
Pepsiman is an official Pepsi mascot from Pepsi's Japanese
corporate branch.
Pepsiman took on three different outfits, each one representing
the current style of the Pepsi can in distribution.

Twelve commercials were created featuring the character. His

role in the advertisements is to appear with Pepsi to thirsty
people or people craving soda

In the game Fighting Vipers , Pepsiman was included as a special

character, with his specialty listed as being the ability to
"quench one's thirst".

RIVALRY WITH COCA-COLA

In the 1970s the rivalry heated up the market. Pepsi conducted
blind taste tests in stores, in what was called the "Pepsi
Challenge". These tests suggested that more consumers
preferred the taste of Pepsi to Coke.
In 1985, The Coca-Cola Company changed its formula in
response to the Pepsi Challenge. However, a consumer backlash
led to Coca-Cola quickly introducing a modified version of the
original formula as Coke "Classic".
In 2005, The Coca-Cola Company and PepsiCo together held
95% market share of soft-drink sales in India. Coca-Cola
India's market share was 52.5%.

RIVALRY WITH COCA-COLA

In 1989, Billy Joel mentions the rivalry between the two
companies in the song "We Didn't Start The Fire". The line
"Rock & Roll and Cola Wars" refers to Pepsi and Coke's usage
of various musicians in their advertising campaigns. Coke used
Paula Abdul, while Pepsi used Michael Jackson.
PepsiCo use the slogan "here, it's Pepsi to answer to Coca-cola
publicity "Everywhere in the world, it's Coke
PepsiCo's U.S. market share is 30.8 percent, while The CocaCola Company's is 42.7 percent. Overall, Coca-Cola continues
to outsell Pepsi in almost all areas of the world. However,
exceptions include India, Saudi Arabia, Pakistan, New York .

FUTURE PLANS
Pepsi plans to begin a Foursquare
partnership in June to drive customers
into retailers selling their products
PepsiCo is taking steps toward making their products
healthier.
Pepsico plans to invest U.S. $1 billion in China over the
next four years
Pepsi is expanding and investing $500 million in India.