PEPSI or Coca cola, second largest beverage company, is a global brand. It is sold nearly in 200 countries. The company’s headquarter for purchase is in New York.
It started with a young pharmacist from North California. He made a digestive from carbonated water, sugar, vanilla and rare oils and it was named as Brad’s drink afterwards he renamed it as Pepsi-Cola, a name which was patented by him for four years. By 1905 he started making Pepsi on a commercial basis and the first bottling franchise was started. The company also started advertising very aggressively and signed up automobile racing pioneer Barney Oldfield as first Pepsi celebrity.
Because of bankruptcy in 1923, the company sold its assets to Graven Holding Corporation for U.S.$30000, which was later bought by Roy C.M, a Wall Street broker for U.S.$35000.
Initial marketing was based on the cost advantage of Pepsi. Pepsi made advertising history by creating the first advertising jingle that was nationally broadcasted – “Nickel Nickel”. Pepsi was the first company to market light weight, recyclable, plastic bottle in the market.
The company consists of Frito-Lay North America, PepsiCo Internationals and Quaker Food North America. The company’s many beverages brand include Pepsi Cola, Mountain Dew, Diet Pepsi, Tropicana, Aquafina, Mug, and Slice. Major Frito-Lay product includes Cheetos cheese chips, Fritos corn chips, Ruffle potato chips.
Pepsi was banned from import in India in 1970 for having refused to realize the list of its ingredients. In 1990, that ban was lifted, and Pepsi was re-launched in India as Lehar Pepsi, on India’s Independence Day.
Since India forms a key market in PepsiCo’s global strategy, the launch was done in a big way. The launch commercial featured Juhi Chawla for 90 seconds long, the longest ever made in India. Pepsi invented “Youth Talk” by combining both Hindi and English- “yeh dill mange more”.
In the middle of the last decade, a study showed that Pepsi’s products contained residues of dangerous pesticides. The company has also been alleged to practice water piracy for its role in exploitation of ground water resources resulting in scarcity of drinking water in areas where the company’s plants are located.
Indra Nooyi was named No.2 on the list of ’50 Most Powerful Women in Business’ by Fortune Magazine. Ms Nooyi is the chairperson and Chief Executive Officer of PepsiCo. She was also named No.12 on Forbes’ list of “World’s 100 Most Powerful Women”
In spite of her impeccable career record and unmatched leadership, of late, Ms Nooyi has drawn flak from the investors and concentrating more on health drinks instead of their flagship product Pepsi Cola.
Today, PepsiCo, despite the numerous controversies that surround it, remains one of the American Capitalism’s most enduring brand icons.
9 Comments