Executive Summary Pepsi's greatest rival is Coca Cola. Coca Cola has an international recognized brand. Coke’s basic strength is its brand name. But Pepsi with its aggressive marketing planning and quick diversification in creating and promoting new ideas and product packaging, is successfully maintaining is No.1 position in India. Pepsi is operating in India, through its 36 bottlers all over India. These bottlers are Pepsi's strength. Pepsi has given franchise to these bottlers. Bottlers, produce, distribute and help in promoting the brand. Pepsi also launched its fast food chain KFC i.e. "Kentucky Fried Chicken.” Purpose of this project is to study the strategies which Pepsi is doing in India market for its product Pepsi cola. Pepsi International is a world renowned
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Executive Summary
Pepsi's greatest rival is Coca Cola. Coca Cola has an international recognized
brand. Coke’s basic strength is its brand name. But Pepsi with its aggressive
marketing planning and quick diversification in creating and promoting new ideas
and product packaging, is successfully maintaining is No.1 position in India. Pepsi
is operating in India, through its 36 bottlers all over India. These bottlers are
Pepsi's strength. Pepsi has given franchise to these bottlers. Bottlers, produce,
distribute and help in promoting the brand. Pepsi also launched its fast food chain
KFC i.e. "Kentucky Fried Chicken.”
Purpose of this project is to study the strategies which Pepsi is doing in India
market for its product Pepsi cola. Pepsi International is a world renowned brand. It
is a very well organized multinational company, which operates almost all over the
world. In India It also has proved itself to be the No.1 soft drink.
We also did analysis of the soft dink industry in India and world wide. The soft
drinks set to become world's leading beverage sector. Global consumption of soft
drinks is rising by 7 -9%a year.(Block 2007) and soft drink consumption increased
by almost 500% during last 50 year (Putnam and allshouse 1999
Introduction of PepsiCo.Pepsi international is world renowned brand .it is very well organized multinational company which operate almost all over the world. The produces one of the beast carbonated drink in the world. Pepsi symbol of hygiene, quality and serving all over the world. Pepsi is producing cola for more than 100 year and it has dominated the world market for long time, it has head offices in NEW YORK
HistoryIn 1893, Caleb Bradham created a drink in his home spicing it with kola nuts and the
enzyme pepsin. At first, he called it “Brad’s Drink” and this was the first name of
Pepsi Cola. It was so delicious that he soon started selling it in his neighborhood.
Later, in 1998, this tasty beverage was renamed to Pepsi Cola and this was when
the start of this world brand was put.
The first years Bradham prepared Pepsi in his drugstore, but soon he was not able
to supply the increased quantity that people wanted to buy. In 1903 he rented a
building where the bottling of the drink was moved. The sales in that year reached
almost 8000 gallons. Seeing a big potential in his drink, Caleb started building a
brand and actively marketing his product. He developed a new handy bottle, which
could be sold almost anywhere. This simple move more than doubled the sales,
which reached nearly 20 000 gallons in 1904. The next year the first logo of Pepsi
was created. A few years later, Bradham hired the racer Barney Oldfield, who
became the first face of Pepsi Cola, advertising it as a nice refreshing drink, a nice
bracer before a race. Everything went well, Bradham enjoyed increasing sales and
people enjoyed more and more his drink. It was initially branded as delicious,
healthy and refreshing, and that had continued for the next two decades.
Caleb Bradham, the founder of Pepsi
The “Roaring Twenties” helped for the fast growth of the company. These years
were times of wealth and excess. But when the crash of 1929 hit the society, things
changed dramatically. At the climax of the Great Depression, “Pepsi Cola Co”. filed
for bankruptcy. Its creditors liquidated all of the assets of the business to collect their
money. A guy named Roy Megargel bought the trademark “Pepsi Cola” and created
a new company, but not for long. A few years later the business defaulted on its
debts once again. This time Charles Guth, a candy manufacturer and businessman,
bought the assets. He had been recently refused a discount on the syrup of Coca-
Cola, which he wanted to sell at his retail stores. Now he would sell Pepsi there.
In 1936, Pepsi was sold in a 12 ounce bottle for 10 cents, but the sales at that price
were not going well. At that time Coca Cola was sold at higher price, but in smaller
bottles of six once, 6 cents each. Pepsi decided to reduce the price 50% in order to
increase the revenue and fight against the strong brand of its main competitor. They
combined this with some radio advertisements featuring “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”, and in fact the goal was achieved. The sales skyrocketed and the
profits doubled in 1938. But the real benefit was that Pepsi became stronger and far
more established brand.
Pepsi Logo – 1905
In 1940, a new smart move was made by Pepsi’s new president – Walter Mack. He
noticed that African Americans were ignored in the marketing campaigns of the
company. This was a realGOLD mine, because nobody was directly targeting
towards them. This was a great way for increasing the market share. A “black sales”
team was formed, but World War II stopped these plans. The campaign was
resumed in 1947, by Edward Boyd, who was hired for only for this purpose. A sales
team only of blacks was formed to promote the drink across America. The team
faced great resistance caused by racism, but this helped, because they were able to
use discrimination as a weapon against Coca Cola – they didn’t want to hire African
Pepsi was found in 1892. In 1959 Pepsi Cola was introduced in Pakistan but due to lack of awareness it was
unsuccessful therefore the headquarters decided to windup their business in Pakistan.
1963 It came again with much revised Strategy, facing a lot of difficulties in promoting there product
and competing against COCA COLA which was a well established brand here in Pakistan and for that reason Pepsi once again went back
1979 Pepsi had secretly promoted its diversified products and carter to all demographic groups of Pakistan there for in with in 5 years they emerged as a market leader, having 62% of market share while COCO COLA had only 32%