Every day, Pepsi products are enjoyed more than 1 billion times in more than 200 countries around the world. Every year, this huge company generates more than 70 billion US dollars in net income. Pepsi production process, we need to go back to 1889, and that time, like many pharmacists at that time, the pharmacist Kale Bradham created Pepsi for the first time, Kale Bradham had a cold drink cabinet in his pharmacy, and he could serve his own drinks, what was his most popular drink? What he calls Brad's drink is a mixture of sugar water, caramel, lemon oil, cola, nuts, nutmeg and other additives. It is a perfect product that can rejuvenate his customers. In order to make this drink popular, he decided to give it a name, hoping to copy Coca-Cola 's success, which he named Pepsi.
became so popular just as the original Coke drink was sweet carbonated and the aroma of Coke that Kalebradham started his own company in 1902, which he called PepsiCo. At first Pepsi was sold as a digestive aid, and it tried to attract customers with an exciting digestive aid, which was perhaps not the most tempting slogan, but Pepsi also seemed to notice that as the brand flourished, they changed their strategies, and they abandoned the slogan and began to rely more on the power of celebrities to increase their sales.
They hired Barney Odfield as the spokesperson, Barney was a famous racer of his era, and he soon became famous, his slogan was: "Drinking Pepsi it will satisfy you." The advertising campaign was a huge success, and Pepsi continued to use celebrities for the next few decades. But after years of success, the disaster came, and the company fell into trouble after World War I . Kalebradham bet on the fluctuations in sugar prices during the war. He believed that sugar prices would fluctuate and continued to rise. He bought a lot of sugar, but unfortunately, on the contrary, this time Kalebradham's sugar inventory price was too high, he lost the company, and Pepsi went bankrupt.
When Pepsi went bankrupt, Coca-Cola had long become its dominant brand in the United States and many other countries. This future looks even worse for the weak Pepsi. A group of creditors took over Pepsi's trademark patents and other assets for only $30,000. A few months later, Roy Margarle bought them for $35,000. With full control of Pepsi, Roy spent $5,000 to survive. He personally lent the company to move his office and factory to Richmond Virginia.
However, despite his brave efforts, when the Great Depression hit, he was unable to maintain the company's solvency. By 1931, Pepsi declared bankruptcy again, and the same year Charles Gus joined the industry, trying to build a new successful Pepsi company, and he soon started to operate. Not only did he find a pharmacist to make better drinks, he also established a new bottle business and began selling 12 ounces of bottled Coke for 5 cents, which was basically twice as expensive as Coca-Cola 6 ounces of bottled Coke.
It began to sell its own ounce bottle at twice the price of 5 cents nickel, and it didn't take long before it unexpectedly succeeded . Nickel Radio Advertising Song became the first song to be played nationwide. Eventually the song was recorded in 55 languages, and it was even named one of the most effective of the 20 ads. However, there are also problems with 's profit 's lower profit.
Charles knew that if the company wanted to survive, it had to grow and grow, so he set up bottling factories across the country and signed contracts with hundreds of bottlers. This is called the scale of the next two decades, with Pepsi continuing to expand.When Alfred Steele became CEO of PepsiCo exploded in 1950, as Alfred, former Coca-Cola vice president, knew it, PepsiCo's performance was exponentially increasing, and his emphasis on large advertising and promotions increased PepsiCo's net profit 11 times. It ultimately made Pepsi a major competitor to Coca-Cola, but Coca-Cola still outsells Pepsi 5-1.
Coca-Cola has established its dominance with three few but very powerful words, and now the real thing, how do you know to compete with a slogan like Pepsi. Pepsi thinks they know how to do this, and if Coca-Cola is a true original product, that means it is the right choice for older people. Pepsi's solution was to focus on the young baby boomers of the time, which shifted the focus to young people, and the theme Pepsi chose a new generation. This shift in marketing began in the early 1960s and didn’t take long to work. In just a few years, Pepsi cut its lead by half, and Pepsi’s brand status grew rapidly and maintained its lead. In 1964, it launched its first sugar-free soda in a different way, and Pepsi became the first national cola company to offer consumers a calorie-free option.
In the same year, the company also acquired the popular Flying Brand. Less than a year later, Pepsi merged with snack maker Fitolly, and Pepsi was born, realizing the need to remain diversified. The newly formed Pepsi company quickly began to do so, from 1977 to 1986, it acquired four large restaurants, Pizza Hut, Taco Bell, KFC and Qixi International chain. Of course, it has also been focusing on its Pepsi brand. And things are going so well that once failed Pepsi is now threatening to replace Coca-Cola as the top soda brand in the United States. In addition, the brand also made international headlines in 1974, becoming the first product to be produced and sold in the United States.
Although Coca-Cola remains the best-selling soft drink in the world, Pepsi continued to gain market share in the 1970s and early 1980s, their Pepsi Generation Ads attracted younger drinkers, and now their aggressive Pepsi Challenge campaign targets older consumers, which involves having consumers perform blind taste tests, and they will usually be surprised to find that they prefer Pepsi to the sweetness of Coca-Cola. Coca-Cola trembled at its headquarters in Atlanta , and worse yet their own research once again confirmed Pepsi's claim, without stopping. And in 1984, Pepsi created a new situation, and they hired Michael Jackson as the spokesperson. At that time, Michael Jackson was among the top stars of fame, and creative TV commercials were so popular that Pepsi would hire many other celebrities in its decade, such as Tina Turner, Joe Montana and Michael J Fox.
But it was with Michael Jackson that Pepsi really created marketing history in the 1980s. There are basically two types of people who drink Coca-Cola and Pepsi. If you like Michael Jackson, you now have a good reason to want to be a member of the Pepsi family. Coca-Cola has proposed a $1 million contract to Michael Jackson, but the proposal has been rejected. The Jackson family turned to Pepsi, and Pepsi CEO Roger Enricohe is looking for a big idea to make Pepsi look young and Coca-Cola look old, who would be more suitable for this. Their $5 million partnership agreement with King of Pop not only broke the record of celebrity endorsement, but it also connected the two entities for a full decade until 1985 when the war on Coke's duopoly was in full swing, and Pepsi began to outsell Coke's sales in supermarkets, which ultimately was enough to beat its big rival.
As the war between Coca-Cola and Pepsi continued, Pepsi was not allowed to focus on other aspects of its later business. In the late 1970s and early 1990s, it focused on packaged food and beverage brands, but by 1997, these non-core brands became apparently not as profitable as they hoped, and restaurants accounted for only 36% of its portfolio, or about 22% of its $3.7 billion profit. Realize that it is best to focus on soft drinks and Fidori snacks. The exit plan has been put into place, after the fast food restaurant acquired was spun off into a new independent company, a new independent company called Tricon Global Restaurant, which became Yum's restaurant brand after getting rid of the fast food chain, and a new era of acquisitions and mergers has begun, and it seems that this time PepsiCo wants to take a new route, hoping to add more seemingly healthy products.
In 1998, it acquired the pure fruit and Dole Juice brands from Haygraham, and in 2001 merged Quaker Oats to form a new division. After Quaker Food and Beverage achieved great success in the United States, PepsiCo is now starting to focus more on expanding its business in other countries. By the beginning of the 21st century, Russia had become the company's second largest market. And after acquiring the controlling stake, the company became Russia's largest juice producer in 2008, and after three years of hard work, it completed the acquisition of Dan Foods, and eventually developed into Russia's largest food and beverage company.
Today PepsiCo is one of the most successful brands in Russia, with a portfolio of products including a wide range of food and beverages including 23 brands, each with sales of more than $1 billion per year. The company's success is made up of a rich food and beverage portfolio including Fitolly Gatorade, PepsiCo, Fly, Quaker, Turgola and Soda to name a few, just like its rival Coca-Cola brand diversified far beyond the once dream of Caleb Bradham, PepsiCo Beverage is currently known for its memorable advertising and for its everlasting struggle with its eternal rival Coca-Cola, which has evolved into one of the most recognizable products in the world since its founding in 1898. This is the story of PepsiCo.
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