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

Americans . That’s why they wouldn’t buy Coke. Pepsi’s market share increased

significantly and for the first time the sales of the company surpassed the sales of

Cola in some areas (Chicago for example). But the focus on African Americans

caused some problems in the company and its bottlers. There was a fear, that Pepsi

would become the “the black drink”, which would hurt the sales to whites. That’s why

in 1950, the “black team” was dismissed.

For the next years Pepsi didn’t stop its expansion. The company focused on its

marketing efforts and on building a strong brand. With the spread of radio, it was

used heavily for advertising purposes. Later Pepsi switched on to television. Many

famous and well known faces were attracted to participate in the company’s

campaigns.

During the next years, Pepsi launched some very successful marketing campaigns

under different slogans, which you can see at the bottom of this article. After World

War II, the company started its expansion around the world. During these years in

America, a new social phenomena appeared – the baby boomers – the postwar

generation. This was the new Pepsi generation – “Come alive! You’re in the Pepsi

Generation”. In 1964 a brand new type of the drink was released – the Diet Pepsi,

because more and more Americans were paying more and more attention to their

weight. The product happened to be successful and two years later a new marketing

campaign was started only for “Diet Pepsi” – “Girlwatchers,”.

Pepsi started an innovative marketing campaign in 1975 – a blind tasting of  Coca

Cola and Pepsi drinks. The people who tried the drinks had to tell which one was

better, without knowing what she/he drunk.  Amazingly, most of the people chose

Pepsi as the better drink. Later the results of these tests were shown on TV and

other media, making a lot of noise and attracting a lot of attention. On the next year,

the first woman was employed by the company.

In 1984 Pepsi’s new generation had become 20 years old. This was the time for the

“The Choice of a New Generation” campaign to be launched.  This once again put

Pepsi on the leading edge of contemporary culture. In its early stages, the New

Generation campaign featured the greatest pop star of that time – Michael Jackson.

He and his famous “Billie Jean” starred in a series of Pepsi-Cola commercials. This

was the time of fierce fighting between Pepsi and its main rival – Coca Cola which,

was really annoyed because of the fast rise of Pepsi. They even changed the secret

recipe of the Coke, but the change was rejected by the customers and these who

liked Coke, quickly switched to Pepsi. Coca Cola had no choice and returned to the

old recipe of their drink. Pepsi PresidentROGER Enrico declared victory in the so

called cola wars, and awarded Pepsi’s workers with a holiday to celebrate.

In the 80s many other stars were attracted for the advertising campaigns of Pepsi.

Some of them were Tina Turner, David Bowie, Lionel Richie, Gloria Estefan, Glen

Frey and many other. Even Geraldine Ferraro – the first woman vice-presidential

candidate in the U.S participated of a campaign dedicated to “Diet Pepsi”. 1987, the

logo was changed slightly to a more rounded one, which was used to 1991.

During the 90s, Pepsi Co signed a huge trade agreement with The Soviet Union.

The company signed a $3-billion deal to more than double production and sales of

soft drinks in the Soviet Union in exchange for ships and the rights to sell more

Soviet vodka in the United States. Pepsi also increased its investment activities in

hot markets as Eastern Europe , Southeast Asia, Argentina and some other

countries. A new great historical advertising campaign was started – “You Got the

Right One Baby, Uh-Huh!” focused on Diet Pepsi, with Ray Charles and “Uh-Huh

Girls”. Cindy Crawford and Shaquille O’Neal also were hired for some great

advertisements like “Be Young, Have Fun, Drink Pepsi”. In these years the company

introduced many new products. A partnership established with “Starbucks” gave

birth to the brand new drink – “Frappucchino” – a refreshing drink based on coffee

and Pepsi Cola. Frappucchino soon became the most preferred cold coffee

beverage in US. Pepsi also entered the bottled water market introducing the

“Aquafina” water. In the late 90s (1997) Pepsi started the campaign “GeneratioNext”

returning to the very successful generation theme.

Pepsi Logo – Today

PepsiCo today is a world leader in convenient snacks, foods, and beverages, with

more than 280 000 employees and revenue reaching $60 billion of dollars. The

company is the owner of some of the greatest world brands Pepsi-Cola, Mountain

Dew, Diet Pepsi, Lay’s, Doritos, Tropicana, Gatorade, and Quaker. These are well-

known all around the world.

Pepsi Slogans

1976 – “Have A Pepsi Day” – a meeting  between a little boy and some even smaller

dogs, became a commercial classic.

1979 – The “Catch that Pepsi Spirit” campaign was launched.

1982 – “Pepsi’s got your Taste for Life!” – great celebration of the nice times of the

80-ties

1883 – The drink was advertised under the slogans – “Pepsi Now” and “Its cheaper

than Coke!”.

In 1984 – Was the time when a new generation had emerged around the world. It

was time for “Pepsi, the Choice of a New Generation” – a great commercial with

Michael Jackson.

1984 – “Diet Pepsi. The Choice of a New Generation”

1988 – “Diet Pepsi. The Taste That’s Generations Ahead”

1989 -“Diet Pepsi. The Right One”

1989 – “Diet Pepsi. The Taste That Beats Diet Coke”

1986 – “We’ve Got the Taste” (commercial with Tina Turner)

1987 – “Pepsi’s Cool”

1990 – “Yehi hai right choice Baby UH HUH” – “This is the right choice Baby UH

HUH” – for Pakistan

1991 – “Gotta Have It”/”Chill Out”

1992- “The Choice Is Yours”

1992 – “Be Young, Have Fun, Drink Pepsi”

1993 – “Right Now” – a song by Van Halen for the Crystal Pepsi advertisement

1994 – “Double Dutch Bus” – Pepsi song sung by Brad Bentz

1995 – “Nothing Else is a Pepsi”

1995 – “Drink Pepsi. Get Stuff.” Pepsi Stuff campaign

1996 – “Change The Script”

1996 – “Pepsi – There’s nothing official about it” – in Pakistan

1997 – “Generation Next” – a commercial with the Spice Girls

1998 – “Its the cola” – a 100 years Pepsi  commercial

1999 – “For Those Who Think Young  –  with Britney Spears

1999 – “The Joy of Pepsi-Cola” – a commercial with Mary J. Blige

1999 – “Yeh Dil Maange More!” – Pakistan – meaning “This heart asks for more”

launched in India

2003 – “Its the Cola (Pepsi Cola)” and “Dare for More”

2006 –  “Why You Doggin’ Me”, “Taste the one that’s forever young”  with Mary J.

Blige

2007 – “More Happy”, “Taste the once that’s forever young” with Michael Alexander

2000 – present: “Pepsi ye pyaas heh bari” – meaning “There is a lot of thirst” – in

Pakistan

2008 – “Pepsi Stuff” Super Bowl Commercial, starring Justin Timberlake

2008 – “Pepsi is #1″ ?v commercial with Luke Rosin

2008 – “Something For Everyone”

2009 –  “Refresh Everything”, “Every Generation Refreshes the World”

2009 -“Yeh hai youngistaan meri jaan” – “This is our young country my baby” in

Pakistani

2009 – “My Pepsi My Way” – in Pakistan

2009 – “Refresca tu Mundo” – “Refresh your world” in Spanish – advertisement for

Latin America

2010 – “Every Pepsi Refreshes The World”

2010 –  “Badal Do Zamana” – Urdu – meaning “Change The World”

2010 – “Pode ser bom, pode ser muito bom, pode ser Pepsi” – meaning “Can be

good, can be very good, can be Pepsi” – launched in Brazil

2011 – “Change the game” – launched for the 2011 Cricket World Cup in Pakistan

2011 – “Dunya Hai Dil Walon Ki” – “World is For Lovers” in Pakistani

2011 –  “Ici, c’est Pepsi” – “Here, it’s Pepsi”

2011–present: "Go Next!" (Japan, for Pepsi Next)

2013–present: "Kore BaMishpahot Hakhi Tovot!" (Hebrew) (Israel) - meaning Heppens at the best families

2013–present: "Dil Maange Abhi" (Urdu) (Pakistan) - meaning Heart Requires Now

2013–present: "Oh Yes Abhi" (Hindi) (India) - meaning Oh Yes Now

2013–present: "Yalla now!" (Arabic) (Middle East and North Africa) - meaning Lets Go Now

2015-present: "Live It Abhi" (Hindi) (India)- meaning "live it now"

Pepsi Cola in PAKISTAN

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%

share.