Pepsico is a company that has become like a household name all over the place. The popular soft drink product Pepsi is it’s reason. While most like Pepsi yet there are people who criticize it for inciting health issues. The company has both admirers and critics which reflects their diverse and different opinions. However, the journey of Pepsico is truly remarkable and it is reflected by the company’s creation, challenges, and the strategies to evolve into a global powerhouse. When you understand the transformational history of Pepsico, you will learn company’s resilience, innovation, and taking care of ever-changing customer preferences.
What’s the History of PepsiCo?
Caleb Bradham who was a pharmacist from New Bern area of North Caolina made a soft drink and named it “Brad’s Drink” in 1893. He had conducted an extensive research before creating Brad’s drink. He created this drink using sugars, carbonated water, oils, vanilla, and cola nuts. Bradham sold it as beverage that help people improve their digestion, provide strength, and induce happiness on their faces. This drink became popular and Bradham renamed it as “Pepsi”. Pepsi is widely available in stores and vending machines. Pepsi has become a testament to the success of Bradham’s original drink.
Bradham wasn’t happy with the original name of his drink. He wanted something that could appeal to the tastes of people. He renamed the drink with Pepsi-Cola in 1898, a two word name derived from Pepsin and Cola words. This drink became so popular that it resonated with the needs of people. Seeing such a popularity of his drink, Bradham a few years later decided to launch the Pepsi-Cola company.
The company since 1903 has sold over 30k gallons of Pepsi worldwide which marks its growing popularity. It was the same year when the company released it’s first ever commercial ad that promoted the drink as something – good, energizing and refreshing drink. Their ad also claimed Pepsi as a solution to help alleviate nerve pain, depression, hysteria, and headaches. It even was meant to serve as an excellent pre-race stimulant. Barney Oldfield, ome of the first to drive race cars, endorsed this drink in an advertisement which was published in the New Bern Sun Journel .
Fall and Rise of PepsiCo company
The United States sugar market collapsed in 1921 which forced many companies including Pepsi-Cola to face financial difficulties. The company began to struggle and as a result profits earned were no close to the company’s expectations. American government took the control of the company in 1928 and renamed it the National Pepsi-Cola Company. However, Charlie Guth who was the president of Loft Incorporation acquired the company after a few years. The company’s original name was restored and he also restructured its operations.
Pepsi-Cola around the time of Great Depression time reduced it’s drink price in order to stay in business. The company sold their 12-ounce drink for just five cents while it’s rivals would change twice than their price. This clever marketing strategy worked in favour of the company as people were looking for ways to save their pennies during tough economic times. Pepsi in 1941, introduced a tricolour crown on their drinks in order to show support for American soliders. This move added more strength to the company’s patriotic image and connection with the general public.
Donald Kendall, in 1971 arranged a historic meeting with the Soviet Unions prime minster Alexei Kosygin. Kendall served the president of PepsiCo company. Both during the meeting negotiated a trade deal that would allow PepsiCo to enter the Soviet market. It was like a milestone for the company as it was the first ever Western consumable to serve people in the Soviet Union. This symbolized a rare commercial exchange during the cold wad Era.
The next good marketing strategy is to put Pepsi and Coca-Cola in a “blind test of two stakes.” These are the main competitors because their products are similar, and the fact that most people who took the test liked Pepsi made the brand more popular.
PepsiCo had a significant change in 1985. The company was known for making the most carbonated soft drinks of any company in the world, and the business bought the well-known 7UP brand a year later. In 1989, the famous magazine Fortune said that people thought the company was the most respected worldwide.
Space Marketing
In 1980, Michael Jackson, the biggest star of all time, was filmed for a Pepsi ad campaign. There are two music videos called “The New Generation Chooses Pepsi.” In 1985, an advertising company looked for people like Lionel Ritchie, Gloria Estefan, and Tina Turner to work there.
After some time, Michael Jackson became the main person in the Chase ad, which was shown at the Grammys and won the award for most stunning video. The “Nothing but Pepsi” video was shown at the Cannes Film Festival, where it also got the highest rating and won the top prizes.
After that, the ads for Pepsi are sent into space. The “space can” of cola is being tested on the space shuttle in deep space. After making a deal with MTV to work together, PepsiCo shoots a video in room. This happened on the Mir orbiting space station.
In 2000, PepsiCo and the Yahoo search engine worked together. They work together to develop a marketing plan for young people and teens. Britney Spears won $94 million in 2001 for her part in a PepsiCo ad, and this is the most expensive fee that has ever been charged for advertising. Maybe the company’s success is because world-famous people helped advertise it.