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Strategic Analysis Of Pepsi Cola Co

2686 words - 11 pages

Introduction

Soft drinks, more popularly known as sodas, are not exactly referred to as items of necessity. People can live without sodas. In fact, people might be safer if they don’t drink soft drinks so much. And yet, soft drinks somehow make it to the top of the list of items most bought by the average consumer. Why is this, exactly? Well, for one thing, sodas are delicious. They stand between liquor and juice. Those who are too young to drink beer but think fruit juice is too juvenile can order sodas. Those too old and are putting their health at risk by drinking hard drinks can enjoy soft drinks and no one would think any less of them. In short, sodas have a mass ...view middle of the document...

It came out for public use on August 28, 1898. It had the reputation for being a food drink; Bradham was a pharmacist and he claimed that his concoction aided digestion. This claim, in a way, was already a marketing strategy, because during those times, people were always buying medicinal aids for digestion.

Pepsi spread to Canada in 1906, and the year after that, it was registered in Mexico. By 1908, Pepsi had upgraded their transportation delivery services from horse-drawn carts to automobiles. Pepsi seemed to be becoming successful in such a short time. But there is still a problem. By the time Pepsi Cola came out, Coke had already made its mark among the public and the newcomer Pepsi found it hard to find a consumer base.

For their first effective marketing strategy, they put their sodas in beer bottles and sold them cheaper than Coke. There was more drink for less money. They started selling, and Pepsi was seen as the poor man’s cola. Although this strategy worked, Pepsi recognized that if their image remained as that of the Poor Man’s Soda, their customer base would never widen. In order to improve its image, Pepsi devised a new marketing strategy by employing celebrities for its advertisements. One of their first celebrity endorser was Barney Oldfield, the pioneer for automobile racing.

The advertising strategy worked, but Pepsi still could not really dethrone Coke. In the 1920’s, the company released the ad Drink Pepsi. It will satisfy you. However, despite industrious efforts, the Pepsi Company still fell into bankruptcy due to the fall of the sugar market. It suffered several years of losses before it was sold to Loft Inc., a giant candy company. Loft was what Pepsi was waiting for. The company began to regain its former success. 1936 saw the formation of Pepsi Limited of London, and in 1938, the Pepsi logo was trademarked in the Soviet Union. The company sold the drink in 12 oz. bottles and launched the advertising campaign of Twice as Much for a Nickel.

The very first advertising jingle, Nickel, Nickel, was broadcasted by Pepsi nationwide. The track enjoyed tremendous popularity. Soon, Pepsi became bigger than Loft Company, and Loft changed their name to Pepsi-Cola Company. By 1947, Pepsi has amassed millions of dollars from the international market and it moved to the Philippines and the Middle East. They added two more advertising campaigns and in 1953, Pepsi began its Light Refreshment campaign in order to appeal to a newly weight-conscious America. Pepsi continued to try and improve its image from being considered as a bargain brand and attracted the young, fashionable consumers with their theme, Be Sociable, Have a Pepsi. Pepsi targeted the younger audience and those who are young at heart. During the baby boomer generation, Pepsi positioned itself as the drink for the new generation with a series of themes designed to appeal to the youth. These youths were said to belong to the Pepsi...

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