Pepsi story marketing strategies applies

7/29/2019 Pepsi story marketing strategies applies

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The

Story The PepsiCo challenge never ends for world's #2 carbonated soft-drink makers. Its soft-

drinks include Pepsi, Mountain Dew, 7UP, Slice, Mirinda and Atom to name a few. Aerated

drinks are a major part of the company's offerings. Pepsi sells Tropicana orange juice brands,

Gatorade sports drink, SoBe tea, and Aquafina water as well. The company also owns Frito-

Lay, the world's #1 snack maker with offerings such as Lay's, Ruffles Doritos, Fritos. Its

Quaker Foods unit offers breakfast cereals (Life, Quaker Oats), rice (Rice-A-Roni), and side

dishes (Near East). Pepsi's products are available in some 200 countries. In 2010 the

company acquired its two largest bottlers, Pepsi Bottling Group and Pepsi Americas.

Pepsi is a soft drink manufactured, bottled and distributed by PepsiCo Inc. headquartered in

Purchase, New York, United States, with interests in the manufacturing, marketing and

distribution of grain-based snack foods, beverages, and other products.

We begin by getting to know about Pepsis history, humble beginnings, its growth and how

Pepsi has managed to gain a strong foothold in the soft-drink industry.


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Pepsi: A Brief History:The summer of 1898, as usual, was hot and humid in New Bern, North Carolina. So

a young pharmacist named Caleb Bradham began experimenting with combinations of spices,

juices, and syrups trying to create a refreshing new drink to serve his customers. He

succeeded beyond all expectations because he invented the beverage known around the world

as Pepsi-Cola. Caleb Bradham knew that to keep people returning to his pharmacy, he would

have to turn it into a gathering place. He did so by concocting his own special beverage, a

soft drink. His creation, a unique mixture of kola nut extract, vanilla and rare oils became so

popular that his customers named it "Brad's Drink." Caleb decided to rename it "Pepsi-Cola,"

and advertised his new soft drink. People responded, and sales of Pepsi-Cola started to grow,

convincing him that he should form a company to market the new beverage.

In 1902, he launched the Pepsi-Cola

Company in the back room of his

pharmacy and applied to the U.S. PatentOffice 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 anywhere.

[Pic: Caleb Bradham (circled) was too focused on serving his customers Pepsi to pose for this picture]

Business grew and on June 16, 1903, "Pepsi-Cola" was officially registered with the U.S.

Patent Office. That year, Caleb sold 7,968 gallons of syrup using the theme line

"Exhilarating, Invigorating, Aids Digestion." He also began awarding franchises to bottle

Pepsi to independent investors, whose number grew from just two in 1905, in the cities of


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Charlotte and Durham, North Carolina, to 15 the following year, and 40 by 1907. By the end

of 1910, there were Pepsi-Cola franchises in 24 states.

Pepsi-Cola's first bottling line resulted from some less-than-

sophisticated engineering in the back room of Caleb's

pharmacy. Building a strong franchise system was one of

Caleb's greatest achievements. Local Pepsi-Cola bottlers,

entrepreneurial in spirit and dedicated to the product's

success, provided a sturdy foundation. They were the

cornerstone of the Pepsi-Cola enterprise. By 1907, the new company was selling more than

100,000 gallons of syrup per year.

Growth was phenomenal, and in 1909 Caleb erected a headquarters so spectacular that the

town of New Bern pictured it on a postcard. Famous racing car driver

Barney Oldfield endorsed Pepsi in newspaper ads as "A bully drink...refreshing, invigorating,

a fine bracer before a race."

The previous year, Pepsi had been one of the first companies in the United States to switch

from horse-drawn transport to motor vehicles, and Caleb's business expertise captured

widespread attention. He was even mentioned as a possible candidate for Governor. A 1913

editorial in the Greensboro Patriot praised him for his "keen and energetic business sense."

Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now promoted Pepsi sales with the

slogan, "Drink Pepsi-Cola. It will satisfy you." Then came World War I and the cost of doing

business increased drastically. Sugar prices see sawed between record highs and disastrous

lows, and so did the price of producing Pepsi-Cola.

Caleb was forced into a series of business gambles just to survive, until finally, after three

exhausting years, his luck ran out and he was bankrupted. By 1921, only two plants remained

open. It wasn't until a successful candy manufacturers, Charles G. Guth appeared on the

scene that the future of Pepsi-Cola was assured. Guth was the President of Loft Incorporated,

a large chain of candy stores and soda fountains along the eastern seaboard. He saw Pepsi-

Cola as an opportunity to discontinue an unsatisfactory business relationship with the Coca-

Cola Company, and at the same time to add an attractive drawing card to Loft's soda


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fountains. He was right. After five owners and 15 unprofitable years, Pepsi-Cola was once

again a thriving national brand.

Pepsi Timeline:1905: A new logo appears, the first change from the original created in 1898.

1906: The logo is redesigned and a new slogan added: "The original pure food drink." The

trademark is registered in Canada.

1907: The Pepsi trademark is registered in Mexico.

1909: Automobile racing pioneer Barney Oldfield becomes Pepsi's first celebrity endorser

when he appears in newspaper ads describing Pepsi-Cola as "A bully drink...refreshing,

invigorating, a fine bracer before a race." The theme "Delicious and Healthful" appears, and

will be used intermittently over the next two decades.

1920: Pepsi appeals to consumers with, "Drink Pepsi-Cola. It will satisfy you."

1934: Pepsi begins selling a 12-ounce bottle for five cents, the same price charged by its

competitors for six ounces.

1938: The trademark is registered in the Soviet Union.

1939: A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as Much for a

Nickel" to increase consumer awareness of Pepsi's value advantage.

1940: Pepsi makes advertising history with the first advertising jingle ever broadcast

nationwide. "Nickel, Nickel" will eventually become a hit record and will be translated into

55 languages. A new, more modern logo is adopted.


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1941: In support of America's war effort, Pepsi changes the colour of its bottle crowns to red,

white and blue. A Pepsi canteen in Times Square, New York, operates throughout the war,

enabling more than a million families to record messages for armed services personnel

overseas.

1943: The "Twice as Much" advertising strategy expands to include the theme,

"Bigger Drink, Better Taste. Why take less when Pepsi's best?" is added to "Twice as Much"

advertising.

1950: "More Bounce to the Ounce" becomes Pepsi's new theme as changing soft drink

economics force Pepsi to raise prices to competitive levels. The logo is again updated.

1953: Americans become more weight conscious, and a new strategy based on

Pepsi's lower caloric content is implemented with "The Light Refreshment" campaign.

1958: Pepsi struggles to enhance its brand image. Sometimes referred to as "the kitchen

cola," as a consequence of its long-time positioning as a bargain brand, Pepsi now identifies

itself with young, fashionable consumers with the "Be Sociable, Have a Pepsi" theme. A

distinctive "swirl" bottle replaces Pepsi's earlier straight-sided bottle.

1961: Pepsi further refines its target audience, recognizing the increasing importance of the

younger, post-war generation. "Now its Pepsi, for those who think Young" defines youth as

a state of mind as much as a chronological age, maintaining the brand's appeal to all market

segments.

1963: In one of the most significant demographic events in

commercial history, the post-war baby boom emerges as a social

and marketplace phenomenon. Pepsi recognizes the change, and

positions Pepsi as the brand belonging to the new generation-The

Pepsi Generation. "Come alive! You're in the Pepsi Generation"

makes advertising history. It is the first time a product is identified,

not so much by its attributes, as by its consumers' lifestyles and

attitudes.


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1964: A new product, Diet Pepsi, is introduced into Pepsi-

Cola advertising.

1966: Diet Pepsi's first independent campaign, "Girl-

watchers" focuses on the cosmetic benefits of the low-

calorie cola. The "Girl-watchers" musical theme becomes a

Top 40 hit. Advertising for another new product, Mountain

Dew, a regional brand acquired in 1964, airs for the first

time, built around the instantly recognizable tag line, "Ya-

Hoo, Mountain Dew!"

1969: "You've got a lot to live. Pepsi's got a lot to give" marks a shift in Pepsi Generation

advertising strategy. Youth and lifestyle are still the campaign's driving forces, but with

"Live/Give," a new awareness and a reflection of contemporary events and mood become

integral parts of the advertising's texture.

1973: Pepsi Generation advertising continues to evolve. "Join the Pepsi People, feeling Free"

captures the mood of a nation involved in massive social and political change. It pictures us

the way we are-one people, but many personalities.

1976: "Have a Pepsi Day" is the Pepsi Generation's upbeat reflection of an improving

national mood. "Puppies," a 30-second snapshot of an encounter between a very small boy

and some even smaller dogs, becomes an instant commercial classic.

1979: With the end of the '70s comes the end of a national malaise. Patriotism has been

restored by an exuberant celebration of the U.S. bicentennial, and Americans are looking to

the future with renewed optimism. "Catch that Pepsi Spirit!" catches the mood and the Pepsi

Generation carries it forward into the '80s.

1982: With all the evidence showing that Pepsi's taste is superior, the only question

remaining is how to add that message to Pepsi Generation advertising. The answer, "Pepsi's

got your Taste for Life!" a triumphant celebration of great times and great taste.


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1983: The soft drink market grows more competitive, but for Pepsi drinkers, the battle is

won. The time is right and so is their soft drink. It's got to be "Pepsi Now!"

1984: A new generation has emerged-in the United States, around the world and in Pepsi

advertising, too. "Pepsi, The Choice of a New Generation" announces the change, and the

most popular entertainer of the time, Michael Jackson, stars in the first two commercials of

the new campaign. The two spots quickly become "the most eagerly awaited advertising of

all time."

1985: After an absence of 27 years, Pepsi returns to Times Square, New York, with a

spectacular 850-square foot electronic display billboard declaring Pepsi to be "America's

Choice."

1988: Michael Jackson returns to "New

Generation" advertising to star in a four-part

"Episodic" commercial named "Chase." "Chase"

airs during the Grammy

Awards program and is immediately hailed by

the media as "the most-watched commercial in

advertising history."

1995: In a new campaign, the company declares "Nothing else is a Pepsi" and takes the top

honours in the year's national advertising championship.

1996: PepsiCo launched the highly successful Pepsi Stuff marketing strategy. By

2002, the strategy was cited by Promo Magazine as one of 16 "Ageless Wonders" that

"helped redefine promotion marketing."

2007: PepsiCo redesigned their 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 their background designs includes a string of repetitive numbers 73774.

This is a numerical expression from a telephone keypad of the word "Pepsi."


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2008: Pepsi overhauled their entire brand, simultaneously introducing a new logo and a

minimalist label design. The redesign was comparable to Coca-Cola's earlier simplification of

their can and bottle designs. Also in 4th quarter of 2008 Pepsi teamed up with

Google/YouTube to produce the first daily entertainment show on Youtube Poptub. This

daily show deals with pop culture, internet viral videos, and celebrity gossip. Poptub is

updated daily from Pepsi.

Now let us look at how Pepsi has felt the need to rebrand itself by changing its logo time and

again.

Logo Analysis:

The Pepsi logo, just like the worlds favourite beverage, has evolved over a long period of

time and has become an all-time recognizable logo across the planet. Despite a lapse of over

100 years, Pepsi Cola still leads the beverages industry and continues to capture the hearts

and minds of millions of consumers with its dazzling taste and refreshing qualities.

The first visible changes were made in 1940 and 1950, when red and blue colours replaced

the original red logo along with a slight alteration to the shape. Another change to

the logo was made in 1962 when the word Cola was dropped from the logo, making it just

Pepsi. The logo again embraced some minor changes on its centennial anniversary in 1998,

with Pepsis success reflected by a sphere which still is part of the worlds most

popular logo today. Let us have a look at the different logos:

Brad's Drink18931898

Pepsi was launched as Brad's Drink in 1893 by Caleb Bradham.
http://www.pepsi.com/http://images3.wikia.nocookie.net/__cb20110924205502/logopedia/images/1/1d/Brad's_Drink_Logo.jpghttp://www.pepsi.com/


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Pepsi-Cola18981905

In 1898 it was decided to rename Brad's Drink as Pepsi-Cola. This is the first Pepsi-Cola logo to be

used.

19051906

19061940

19401961
http://images3.wikia.nocookie.net/__cb20100803210657/logopedia/images/e/e7/Picture-111.pnghttp://images2.wikia.nocookie.net/__cb20100914190426/logopedia/images/d/dd/Pepsi-Cola_1940s.pnghttp://images4.wikia.nocookie.net/__cb20120819163003/logopedia/images/0/0e/Pepsi_oldd.pnghttp://images3.wikia.nocookie.net/__cb20120819163707/logopedia/images/0/06/Pepsifirst.pnghttp://images3.wikia.nocookie.net/__cb20100803210657/logopedia/images/e/e7/Picture-111.pnghttp://images2.wikia.nocookie.net/__cb20100914190426/logopedia/images/d/dd/Pepsi-Cola_1940s.pnghttp://images4.wikia.nocookie.net/__cb20120819163003/logopedia/images/0/0e/Pepsi_oldd.pnghttp://images3.wikia.nocookie.net/__cb20120819163707/logopedia/images/0/06/Pepsifirst.pnghttp://images3.wikia.nocookie.net/__cb20100803210657/logopedia/images/e/e7/Picture-111.pnghttp://images2.wikia.nocookie.net/__cb20100914190426/logopedia/images/d/dd/Pepsi-Cola_1940s.pnghttp://images4.wikia.nocookie.net/__cb20120819163003/logopedia/images/0/0e/Pepsi_oldd.pnghttp://images3.wikia.nocookie.net/__cb20120819163707/logopedia/images/0/06/Pepsifirst.pnghttp://images3.wikia.nocookie.net/__cb20100803210657/logopedia/images/e/e7/Picture-111.pnghttp://images2.wikia.nocookie.net/__cb20100914190426/logopedia/images/d/dd/Pepsi-Cola_1940s.pnghttp://images4.wikia.nocookie.net/__cb20120819163003/logopedia/images/0/0e/Pepsi_oldd.pnghttp://images3.wikia.nocookie.net/__cb20120819163707/logopedia/images/0/06/Pepsifirst.png


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This is the last version of the classic Pepsi-Cola script.

Pepsi

1961

1973

The swirls are now seen to be more iconic than the script, thus it was decided to remove the script in

favour of a simpler sans serif font. It was at this point Pepsi-Cola was shortened to Pepsi.

19701987, 2010present

A new logo was introduced in 1970 based on the Bottle Cap swirls. A feature of this logo is the red

and light blue stripes. This logo is used on Pepsi Throwback.

19871991

In 1987 the logo was modernised, the proportions of the swirls have changed and the typeface has

changed to a font similar to what would be used for the next sixteen years.
http://images3.wikia.nocookie.net/__cb20110821150323/logopedia/images/d/df/Pepsi_Logo_1980s.pnghttp://images3.wikia.nocookie.net/__cb20111026160325/logopedia/images/0/05/Pepsi_Logo_1970s.pnghttp://images1.wikia.nocookie.net/__cb20100803211612/logopedia/images/0/0c/1962.gifhttp://images3.wikia.nocookie.net/__cb20110821150323/logopedia/images/d/df/Pepsi_Logo_1980s.pnghttp://images3.wikia.nocookie.net/__cb20111026160325/logopedia/images/0/05/Pepsi_Logo_1970s.pnghttp://images1.wikia.nocookie.net/__cb20100803211612/logopedia/images/0/0c/1962.gifhttp://images3.wikia.nocookie.net/__cb20110821150323/logopedia/images/d/df/Pepsi_Logo_1980s.pnghttp://images3.wikia.nocookie.net/__cb20111026160325/logopedia/images/0/05/Pepsi_Logo_1970s.pnghttp://images1.wikia.nocookie.net/__cb20100803211612/logopedia/images/0/0c/1962.gif


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19911997

A redesigned and streamlined logo was revealed in September 1991. For the first time the Pepsi text

is outside of the swirls.

19972003

In June 1997, Pepsi launched "Project Blue" where the background colour on the label was changed

to blue in several International markets outside the United States. The new look was developed

with Landor Associates in San Francisco. The launch includes extravagant publicity stunts, such as a

Concorde aeroplane painted in the new blue colours (which was owned by Air France), and a banneron the Mir space station.

20032008
http://logos.wikia.com/wiki/Landor_Associateshttp://logos.wikia.com/wiki/Air_Francehttp://images2.wikia.nocookie.net/__cb20100125152719/logopedia/images/b/b8/Pepsi_logo_2005.pnghttp://images1.wikia.nocookie.net/__cb20110821150133/logopedia/images/7/7c/Pepsi_Logo_1998_Plain.pnghttp://images3.wikia.nocookie.net/__cb20100726081850/logopedia/images/4/4f/Pepsi_logo_1991.svghttp://images2.wikia.nocookie.net/__cb20100125152719/logopedia/images/b/b8/Pepsi_logo_2005.pnghttp://images1.wikia.nocookie.net/__cb20110821150133/logopedia/images/7/7c/Pepsi_Logo_1998_Plain.pnghttp://images3.wikia.nocookie.net/__cb20100726081850/logopedia/images/4/4f/Pepsi_logo_1991.svghttp://images2.wikia.nocookie.net/__cb20100125152719/logopedia/images/b/b8/Pepsi_logo_2005.pnghttp://images1.wikia.nocookie.net/__cb20110821150133/logopedia/images/7/7c/Pepsi_Logo_1998_Plain.pnghttp://images3.wikia.nocookie.net/__cb20100726081850/logopedia/images/4/4f/Pepsi_logo_1991.svghttp://logos.wikia.com/wiki/Air_Francehttp://logos.wikia.com/wiki/Landor_Associates


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In 2003, the logo was revamped with a more modern slightly serif font and the Pepsi Globe became

more three dimensional (A version of the Pepsi globe imported from the 2002-2003 Diet Pepsi logo). It

also had the additional of 'water droplets'.

Pepsi Wild Cherry used this design until 2010, as did many countries outside the US. Pepsi ONE was

the last variant to use this design after the current logo was unveiled; it finally switched to the current

logo around late 2012.

(Evolution of Pepsi Cans)


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Pepsi story marketing strategies applies

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