INTRODUCTION• Pepsi is a carbonated soft drink produced and manufactured by

PepsiCo. The drink was first made in the 1890s by pharmacist Caleb Davis Bradham in New Bern, North Carolina.

• It was first introduced as "Brad's Drink" in New Bern, North Carolina in 1898 by Caleb Bradham, who made it at his pharmacy where the drink was sold

• It was named Pepsi Cola, possibly due to the digestive enzyme pepsin and kola nuts used in the recipe.

• In 1926, Pepsi received its first logo redesign since the original design of 1905. In 1929, the logo was changed again.

INTRODUCTION• In 1931, at the depth of the Great Depression, the Pepsi-Cola

Company entered bankruptcy - in large part due to financial losses incurred by speculating on wildly fluctuating sugar prices as a result of World War.

• During the Great Depression, Pepsi gained popularity following the introduction in 1936 of a 12-ounce bottle. Initially priced at 10 cents, sales were slow, but when the price was slashed to five cents, sales increased substantially.

• Pepsi encouraged price-watching consumers to switch, obliquely referring to the Coca-Cola standard of six ounces per bottle for the price of five cents (a nickel), instead of the 12 ounces Pepsi sold at the same price. Coming at a time of economic crisis, the campaign succeeded in boosting Pepsi's status. From 1936 to 1938, Pepsi-Cola's profits doubled.

MAJOR BRANDS• The major brand categories owned by Pepsico, Inc. include Pepsi,

Frito-Lay, Gatorade, Quaker Oats and Tropicana. Each of these has numerous other product offerings in their respective categories, both U.S. and internationally. For example, the Pepsi-cola family includes over two dozen beverage brands, such as Mountain Dew, Mug (root beer) and several partnerships (e.g., Lipton ice tea). Quaker Oats includes Rice-a-Roni side dishes, Aunt Jemima mixes and syrups, etc.

• Pepsi • Diet Pepsi • Caffeine-Free Pepsi • Caffeine-Free Diet Pepsi • Pepsi Wild Cherry • Diet Pepsi Wild Cherry • Diet Pepsi Vanilla • Pepsi ONE

INGREDIENTS Pepsi is made with carbonated water, high fructose corn syrup, caramel colour, sugar, Phosphoric acid, caffeine, citric acid and natural flavors. A can of Pepsi (12 fl ounces) has 41 grams of carbohydrates (all from sugar), 30 mg of sodium, 0 grams of fat, 0 grams of protein, 38 mg of caffeine and 150 calories. The caffeine-free Pepsi-Cola contains the same ingredients but without the caffeine.

The original Pepsi-Cola recipe was available from documents filed with the court at the time that the Pepsi-Cola Company went bankrupt in 1929. The original formula contained neither cola nor caffeine.

ORGANIZATION STRUCTURE

ORGANIZATION STRUCTURE

• At Pepsico, the managers and leaders have identified the relationship that exists between themselves and the employees. In this company, the leaders and managers usually use information elements in supporting the employees' decision making for improvement of the working condition.

• Employee's involvement in decision making especially in regard to their working conditions and environment is a key to ensuring that a healthy culture is developed in an organization

• Managers and leaders involve all levels of management as well as the employees on the decision making process and they always encourage open and participatory decision making process.

ORGANIZATION STRUCTURE• Leaders and managers jointly perform the management

function which includes planning, budgeting, evaluating and facilitating of organizational resources

• While formulating the plans, employees are consulted and their views incorporated in the overall plans of the company and they also aid the managers and leaders in coming up with fore-casted budgets for a particular period of operations.

• Managers of Pepsico are efficient and carry out their leadership functions effectively. This in turn motivates the employees and they willingly follow the leaders. Good leadership at Pepsico has been a major tool that has created a culture of hard work and innovation

ORGANIZATION STRUCTURE• The company has also facilitated a good and safe working

environment for its employees and this has in turn improved the workers productivity and commitment to the organization. The relationship between the workers and leaders is interactive and workers grievances relating to their working environment and other labor related issues are well addressed

• Trust has been developed between the management and the workers as leaders are committed to their tasks just as workers are. This maintains the culture of hard work and commitment to goals and objectives

MARKETING STRATEGY• From the 1930s through the late '50s, "Pepsi-Cola Hits The

Spot" was the most commonly used slogan in the days of old radio, classic motion pictures, and later television.

Pepsi utilized the services of a young, up-and-coming actress to promote products.

• 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.

MARKETING STRATEGY• In 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.

• 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.

• 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.

GLOBAL STRATEGYA decidedly youth-oriented strategy, the campaign hoped to hook

young Baby Boomers while they were still young. In 1984 Pepsi launched another long-running campaign, "The Choice of a New Generation,“

Pepsico invented a Pepsi package that is meaningful and has an appealing communications tool for the latest generation of youth that are not overwhelmed by media, music, or digital distractions.

The new global look launched in February with eight new package designs across cans and bottles, and the campaign is unfolding in a similar manner overseas. The can designs roll out one at a time approximately three weeks apart to enhance the anticipation of discovery and to pique the interest of collectors.

GLOBAL STRATEGYThe Pepsi can designs roll out one at a time, but the two-liter Pepsi

bottles will have three or four designs out at any given time.The brand equity has to be consistent. There should be very few

differences around the world in how consumers feel about Pepsi's fun, effervescent brand image.

The design campaign's goal is "sustainable discovery," where the consumer audience is constantly intrigued and engaged.

Designers created the dozens of new and vibrant designs with only a handful of blue and gray shades. Each design tells a story of sorts and each can design has a unique website address on the side of the can. These wed sites allow the web users to design a digital billboard that will appear in Times Square, and also the users can mix their own music online.

GLOBAL STRATEGYIn a survey, the pepsi consumers said that the only 3 brand

elements that should remain the same are-the Pepsi "globe," the iconic Pepsi blue, and the familiar tilted Pepsi capital letters.

Television ad campaigns are reinforcing the globe-centric approach by featuring a boulder-sized Pepsi globe in various settings careening to and fro like a pinball. In the ads and on the front of most of the new packages is the reassuring tag line: "Same Pepsi inside, new look outside.“

The consumer is looking for more variety and expecting more from their brands. They want to have a dialogue with their favorite brands

FOCUS STRATEGY• Although the company's revenues had increased marginally by

4% in 1996, the net income had witnessed a major decline 28.45% in the same period.

• Analysts pointed at PepsiCo's lack of focus on its core operations as one of the major reasons for its poor financial performance. In its efforts to sharpen focus on its core beverage , and snack food businesses, PepsiCo underwent a major restructuring by spinning-off its restaurant businesses as an independent publicly traded company.

• In July 1998, PepsiCo acquired Tropicana, the world leader in the marketing and production of branded juices, in its efforts to strengthen its position in the non-carbonated beverages segment.

FOCUS STRATEGY• In its efforts to enhance the revenues from its beverages

business, PepsiCo acquired a majority equity stake in SBBC, which emerged as one of the successful companies in the non-carbonated beverages industry after the launch of its brand SoBe.

• PepsiCo, acquired Quaker Oats, a leading food and drinks company, in a deal worth $13.4 bn. In an all-stock deal, one share of Quaker was swapped for 2.3 shares of PepsiCo, up to a value of $105 for each Quaker share. According to analysts, this acquisition was expected to increase PepsiCo's beverages revenues significantly

SLOGANS• 1939–1950: "Twice as Much for a Nickel"• 1950: "More Bounce to the Ounce"• 1950–1957: "Any Weather is Pepsi Weather"• 1957–1958: "Say Pepsi, Please"• 1958–1961: "Be Sociable, Have a Pepsi"• 1961-1963: "Now It's Pepsi for Those Who Think Young" • 1963–1967: "Come Alive, You're in the Pepsi Generation" • 1967–1969: "(Taste that beats the others cold) Pepsi Pours It On".• 1969–1975: "You've Got a Lot to Live, and Pepsi's Got a Lot to Give"• 1975–1977: "Have a Pepsi Day"• 1977–1980: "Join the Pepsi People (Feeling Free)"• 1980–1981: "Catch That Pepsi Spirit" • 1981–1983: "Pepsi's got your taste for life"• 1983: "It's cheaper than Coke!"• 1983–1984: "Pepsi Now! Take the Challenge!"• 1984–1991: "Pepsi. The Choice of a New Generation"

SLOGANS• 1984-1988: "Diet Pepsi. The Choice of a New Generation"• 1988-1989: "Diet Pepsi. The Taste That's Generations Ahead"• 1989-1990: "Diet Pepsi. The Right One"• 1989-1992: "Diet Pepsi. The Taste That Beats Diet Coke"• 1986–1987: "We've Got The Taste" • 1987–1990: "Pepsi's Cool"• 1990–1991: "You got the right one Baby UH HUH" • 1991: "Yehi hai right choice Baby UH HUH" (India)• 1991–1992: "Gotta Have It"/"Chill Out"• 1992–1993: "Be Young, Have Fun, Drink Pepsi"• 1993–1994: "Right Now" • 1994–1995: "Double Dutch Bus" • 1995: "Nothing Else is a Pepsi"• 1995–1996: "Drink Pepsi. Get Stuff." • 1996–1997: "Pepsi:There's nothing official about it"• 1997–1998: "Generation Next"• 1998–1999: "It's the cola"

SLOGANS• 1999–2000: "For Those Who Think Young"/"The Joy of Pepsi-Cola" • 1999-2006: "Yeh dil maange more" (India)• 2003: "It's the Cola"/"Dare for More" • 2006–2007: "Why You Doggin' Me"/"Taste the one that's forever young" • 2007–2008: "More Happy"/"Taste the once that's forever young" • 2008: "Pepsi Stuff" • 2008: "Рepsi is #1”• 2008–present: "Something For Everyone"• 2009–present: "Refresh Everything"/"Every Generation Refreshes the

World"• 2009–present: "Yeh hai youngistaan meri jaan" • 2009–present: "My Pepsi My Way” (India)• 2009–present: "Refresca tu Mundo” (Spain) • 2010–present: "Every Pepsi Refreshes The World"• 2010–present "Youngistan ka wow." (India)

P E P S I M A N • Pepsiman is an official Pepsi mascot from Pepsi's Japanese

corporate branch.

• 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 the game Fighting Vipers , Pepsiman was included as a special character, with his specialty listed as being the ability to "quench one's thirst".

RIVALRY WITH COCA-COLA• In the 1970s the rivalry heated 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 to Coke.

• In 1985, The Coca-Cola Company changed its formula in response to the Pepsi Challenge. However, a consumer backlash led to Coca-Cola quickly introducing a modified version of the original formula as Coke "Classic".

• In 2005, The Coca-Cola Company and PepsiCo together held 95% market share of soft-drink sales in India. Coca-Cola India's market share was 52.5%.

RIVALRY WITH COCA-COLA• In 1989, Billy Joel mentions the rivalry between the two

companies in the song "We Didn't Start The Fire". The line "Rock & Roll and Cola Wars" refers to Pepsi and Coke's usage of various musicians in their advertising campaigns. Coke used Paula Abdul, while Pepsi used Michael Jackson.

• PepsiCo use the slogan "here, it's Pepsi“ to answer to Coca-cola publicity "Everywhere in the world, it's Coke“

• PepsiCo's U.S. market share is 30.8 percent, while The Coca-Cola Company's is 42.7 percent. Overall, Coca-Cola continues to outsell Pepsi in almost all areas of the world. However, exceptions include India, Saudi Arabia, Pakistan, New York .

FUTURE PLANSPepsi plans to begin a Foursquare partnership in June to

drive customers into retailers selling their products

PepsiCo is taking steps toward making their products healthier.

Pepsico plans to invest U.S. $1 billion in China over the next four years

Pepsi is expanding and investing $500 million in India.