Muhammad Fahad Ali Mirza
Pepsi was first introduced as "Brad's Drink"
in New Bern, North Carolina, United States,
in 1898 by Caleb Bradham, who made it at
his home where the drink was sold. It was
later labeled Pepsi Cola, named after the
digestive enzyme pepsin and kola nuts used
in the recipe. Bradham sought to create a
fountain drink that was delicious and would
aid in digestion and boost energy.
PepsiCo is a world leader in convenient snacks, foods and
beverages with revenues of more than $60 billion and
over 285,000 employees.
• Born in the Carolinas in 1898, Pepsi-Cola has a long and
rich history. The drink is the invention of Caleb Bradham,
a pharmacist and drugstore owner in New Bern, North
• 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 trademark. At first, he mixed the syrup
himself and sold it exclusively through soda fountains.
But soon Caleb recognized that a greater opportunity
existed to bottle Pepsi so that people could drink it
• Pepsi is a carbonated soft drink that is produced and
manufactured by PepsiCo. Created and developed in
1898 and introduced as "Brad's Drink", it was later
renamed as Pepsi-Cola on June 16, 1903, then to Pepsi
• Pepsi Cola is one of the largest soft drinks industries
which operate in Australia. The main products of the
company comprises of different soft drinks brand
including Pepsi, Pepsi Light, Pepsi Max, 7UP, Diet 7UP,
Caffeine Free Pepsi Light, Mountain Dew
• "PepsiCo's responsibility is to continually improve all
aspects of the world in which we operate - environment,
social, economic - creating a better tomorrow than today.“
• The company‟s mission is “To be the world‟s premier
consumer Products Company focused on convenient
foods and beverages.”
• During the Great Depression, Pepsi gained popularity
following the introduction in 1936 of a 12-ounce bottle.
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", arranged in such a way that the jingle never
• The original trademark application for Pepsi-Cola was
filed on September 23, 1902 with registration approved
on June 16, 1903. In the application's statement, Caleb
Bradham describes the trademark as an "arbitrary
hyphenated word "PEPSI-COLA", and indicated that the
mark was in continuous use for his business since
August 1, 1901.
• According to Consumer Reports, in the 1970s, the rivalry
continued to heat 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 (which is
believed to have more lemon oil, and less orange oil, and
uses vanillin rather than vanilla) to Coke.
• This became known as the "Cola Wars".
• In 1985, The Coca-Cola Company, amid much publicity,
changed its formula. The theory has been advanced that
New Coke, as the reformulated drink came to be known,
was invented specifically in response to the Pepsi
Challenge. However, a consumer backlash led to CocaCola quickly reintroducing the original formula as Coke
• Overall, Coca-Cola continues to outsell Pepsi in almost
all areas of the world. However, exceptions include
Oman; India; Saudi Arabia; Pakistan
• Classic Motion Pictures
• Special Songs
• First Female Salesperson
• PepsiCo Dominates Through Their Three Brands And
• Frito-Lay Alone Is World Leader
• Product Expansions
• Annual Sales Are Increasing Constantly
• Coca Cola Dominates The Carbonated Cola Drinks In
• Increase In Prices of Raw Materials Especially of Fuel
And Cooking oil
• PepsiCo Will Need To Satisfy Their Taste And Price
Preferences To Retain Customer
• Compromise Through Cost Savings
• The Company has strong brand names
• The Company has a good reputation among customers
• PepsiCo‟s Direct Store Distribution Provides Them
Tremendous Business Control
• The Way PepsiCo Displays It‟s Products In Super
Markets, Provides Selling Opportunities
• PepsiCo could gain Great opportunities with its better
• Long term international expansion can also be used as
• There is the possibility of arrival of new technologies
• There has been the removal of international trade
• PepsiCo Will Have to Change it‟s taste because
awareness on obesity and heart Related diseases is
increasing day by day and people are towards healthy
• Political Factors:
PepsiCo products are subject to various federal laws.
Land acquisition for new factories.
Govt. focusing on stricter water pollution norms.
Raw Material prices
• Economical Factors:
New opportunities in other countries.
Availability of Labour.
Have a global Prospect.
• Social Factors:
Impact on youngsters.
Solid waste management program.
Partnership with farmers.
• Technological Factors:
State of Arts plant.
Induction of cans and plastic bottles.
Operates in almost all the countries.
From the 1930s through the late 1950s, "Pepsi-Cola Hits
the Spot" was the most commonly used slogan in the days
of old radio, classic motion pictures, and later television. Its
jingle (conceived in the days when Pepsi cost only five
cents) was used in many different forms with different
lyrics. With the rise of radio, Pepsi utilized the services of a
young, up-and-coming actress named Polly Bergen to
promote products, oftentimes lending her singing talents to
the classic "...Hits The Spot" jingle.
• Film actress Joan Crawford, after marrying then PepsiCola President Alfred N. Steele became a spokesperson
for Pepsi, appearing in commercials, television specials
and televised beauty pageants on behalf of the company.
Crawford also had images of the soft drink placed
prominently in several of her later films.
• In 1975, Pepsi introduced the Pepsi Challenge marketing
campaign where PepsiCo set up a blind tasting between
Pepsi-Cola 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.
• In 2007, PepsiCo redesigned its 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. One of its background
designs includes a string of repetitive numbers, "73774".
This is a numerical expression from a telephone keypad
of the word "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. It also has the naming rights to the Pepsi
Center, an indoor sports facility in Denver, Colorado.
• Pepsi also has sponsorship deals in international cricket
teams. The Pakistan cricket team is one of the teams that
the brand sponsors. The team wears the Pepsi logo on
the front of their test and ODI test match clothing.
• In May 2011, the week before Memorial Day, Pepsi
launched a limited edition flavor called "Memorial Day
Pepsi", with blueberry and cherry flavors added to the
• In March 2012, Pepsi introduced Pepsi Next, a cola with
half the calories of regular Pepsi.
• Pepsiman is an official Pepsi mascot from Pepsi's Japanese
corporate branch. The design of the Pepsiman character is
attributed to Canadian comic book artist Travis Charest created
sometime around the mid-1990s. 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 1996, Sega-AM2 released the Sega Saturn version of
its arcade fighting game Fighting Vipers. In this game
Pepsiman was included as a special character, with his
specialty listed as being the ability to "quench one's
2012 "Live For Now“
2012 "Where there's Pepsi, there's music”
2011 "Dunya Hai Dil Walon Ki”
2011 "Change the game" (India, Bangladesh &
Pakistan for the 2011 Cricket World Cup)
2010 – 2011 "Badal Do Zamana"
2009 "Yeh hai youngistaan meri jaan"
2008 "Something For Everyone"
• Beverage Products – Diet Pepsi, Gatorade, Mountain
Dew, Thirst Quencher, Tropicana, Aquafina Bottled
Water, Sierra Mist.
• Savory Food Snacks – Fritos Corn chips, cheetos, Lays,
Tostitos, Sting, Doritos.
• Other Food Products – breakfast cereals, cakes and
• PepsiCo recently created Baked Snacks North America
Business Unit to meet consumer‟s interest in more
nutritious snacks and foods.
• Expenses related to transportation, ingredients and labor
continue to pressure the beverage industry toward price
• PepsiCo‟s drink pricing strategies may be heavily
influence by its working relationship with Wal-Mart whose
low price themes put pressure on PepsiCo to hold down
• The company strives to cut or maintain current prices by
cutting overhead and reengineering the manufacturing
• PepsiCo is expanding its use of inexpensive and
recyclable plastic bottles; nevertheless the company has
instituted some price increases in recent years,
specifically in its overseas markets such as New Delhi
• PepsiCo is primarily a US based co. with approximately
52% of its revenues located in the states.
• PepsiCo is in the midst of making a $1,000 million
investment in China, and a $500 million investment in
India. Both initiatives are part of its expansion into
international markets and a lessening of its dependence
on US sales.
• In addition the company plans on major capital initiatives
in Brazil and Mexico.
• The company is also acquiring Russia‟s leading Juice
Company, Lebedyansky, and V Water located in the UK.
• Indra K. Nooyi is the President of PepsiCo in addition to the
• Recently the board of Directors elected Steven S Reinemund
chairman of the board and chief executive officer.
• PepsiCo fosters a corporate culture that values employees and
emphasized diversity in the workplace.
• PepsiCo is named to the „Best Companies for Multi Cultural Women‟
list by Working Mother magazine.
• PepsiCo is recognized at two events for its dedication to Talent
Sustainability and dedication to Asian American employees-2009
Best companies for Asian Pacific Americans from Asian
Entrepreneur, Top 10 Companies for Asian Americans from AMBA.
• PepsiCo has won the „Workplace Excellence‟ Award at Out & Equal
Workplace National Summit.
• PepsiCo is listed in the top 20 „Ideal Employer MBA Ranking‟ in
• PepsiCo is a truly dominant company with three mega
industries and brands famous and embraced all over the
world. With its strategies of diversification and synergy, it
is able to expand its product portfolio through hybrid
distribution systems with a lesser cost. But all companies
fall prey to their large sizes and PepsiCo must be able to
continue to steer their company in a single direction,
while being supported by all of its companies and not just
a single driving company like Frito-Lay
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