A century later, The Coca-Cola Company has produced more than 10 billion gallons of syrup. John Pendleton died just 3 years after the invention of Coca-Cola and unfortunately without realizing the phenomenon he had created. John Pemberton’s partner and bookkeeper created the first Coca-Cola logo in 1887. They thought that the two Cs would look good in advertising, and they began to create the well-known logo for Coca-Cola. The script was developed in the mid 19th century.
They can do somehow a better job in making sound investments and control the marketing with their products. I see that there were some challenges from some years especially when PepsiCo and Coco-Cola were at a war to compete each other with their businesses. Coca-Cola and PepsiCo are a few years apart, but both of them are well known and have such popularity with people drinking their sodas. Coca-Cola has been trying to surpass PepsiCo in their annual sales; however, from review, PepsiCo somehow has the highest number in their annual sales than Coca-Cola. PepsiCo has shown the best current ratio and is able to pay off their debts, which Coca-Cola does not have that and is struggling to pay off their debts.
Bradham had several flavors but the most popular, created in 1893, was called “Brads drink” and consisted of vanilla, sugar, carbonated water, rare oils, cola nuts and pepsin. Brads drink was renamed Pepsi Cola in 1898 because of the two ingredients that are used in the drink Pepsin and Cola nuts. The trade name was purchased for $100 and the new name was trademarked on June 16th, 1903. Pepsi Cola was purchased in 1931 by the Loft Candy Company where the drink was made popular again after being lost by Caleb Bradham in 1923. In 1940 the first jingle “Nickel Nickel” which referred to the price of the drink was released for advertisement.
PepsiCo Synopsis Pepsi-cola is the invention of Caleb Bradham, a pharmacist, in 1898. He created the drink out of carbonated water, a unique mixture of Kola nut extract, vanilla, and rare oils ("Andy's Pepsiholic Haven", 2002).In December 1902, Bradham launched the Pepsi-Cola from the back room of his pharmacy. By 1910, there were 250 franchises in 24 states. The company ran 17 years successfully before encountering price fluctuations in sugar prices during World War I. After sugar prices fell, he was left with a large inventory of overprices sugar, bankrupting the company in 1923.
Opportunities: -Expand into different regions blue collard segment- Expand into new market segments in East Region- New products- Female- “First Time Drinkers” Threats: -Aging core- customer segment- Major Domestic producers- light beer- Second tier domestic producers- Wine and spirited drinks companies- federal excise tax rate, increase in national health concern MMBC’s competitive advantage is the companies unique brand equity. Mountain Man Lager is distinctive because of its’ bitter flavor and slightly higher-than-average alcohol content. The company has made a profit since 1925 until 2005 about 80 years by having a loyal core customer base and building on its brand equity. It is sustainable as long as they keep or increase their core customer market without jeopardizing the brand image. The company’s competitive advantage is a combination of the Brand loyalty, core customer market, Brand Image, “Grass Roots” Marketing which is more effective in there region than competitors.
April 28, 2011 (Bloomberg) -- PepsiCo Inc., the world’s largest snack-food maker, reported a 27 percent gain in first-quarter sales, bolstered by purchases in international markets. PepsiCo’s sales rose to $11.9 billion, compared with the $11.8 billion average of estimates compiled by Bloomberg. Excluding items such as integration costs and hedges, profit was 74 cents, compared with the 73-cent analyst average. PepsiCo, led by Chief Executive Officer Indra Nooyi, has developed new flavors to appeal to markets internationally, relying on chip sales overseas to make up for slower beverage sales volumes in North America. Volume in the South American foods business climbed 2 percent.
Table of Contents Introduction 3 Pepsi’s Marketing Idea 3 Why Use Celebrities? 4 Product Placement in Relation to Target Market 5 The Pepsi Marketing Idea In Relation To the Boston Consulting Group Matrix 6 Media Saturation 7 Conclusion 8 References 9 Introduction In the article “Why fashion keeps bottling celebrity pop,” Seckler (2005) Alan Siegel, chairman and chief executive officer of Siegel & Gale states that “Marketing leverages what's going on in society — and we live in a society that is celebrity obsessed"(p.1). The Pepsi Corporation, a multi-billion dollar soft drink conglomerate, has upon discerning this societal trait, devised a marketing campaign designed to tap in to this celebrity fascination to increase exposure and profit. The purpose of this assignment was to identify a great marketing idea and comprehensively describe its marketing and this report will investigate this particular campaign and its influence on the market, in relation to the assignment topic. Pepsi’s Marketing Idea In 1961 Pepsi had redefined its target audience, recognising the importance of securing the younger post-war generation as consumers, with the slogan “Now It’s Pepsi, for those who think young” defining youth as a state of mind rather than actual age (Pepsi.com, 2006).
| Total stockholders’ (shareholders’) equity | 17325 | 21,744 | Not many corporations can boast of a 100 Year rivalry. The beverages industry witnessed such intense competition between Coca-Cola and Pepsi-Co That one can say that the competition between the corporations was, and still is so intense it could be likened to sibling rivalry, albeit a very serious one since finances are involved. The product offerings of both companies are so similar, that if one were to remove the brand names from their respective products, an individual would not be able to distinguish one from the other. The companies not only compete in soft drinks, but also have branched out to other beverages including coffee, juice drinks and even water. If Pepsi were to offer a new product it wouldn't be surprising to see Coca-Cola follow suit.
In 1965 PepsiCo Inc was formed when beverage giant Pepsi cola and snack food icon Frito-lay agreed to a merger. In the years after, leading up to 1996 the company pursued a growth strategy through acquisitions of businesses in the snack food, beverage and fast food industry, which they believed had potential benefits in cost sharing and skills transfer. Companies acquired during this period included KFC, Pizza Hut, Taco Bell, Mug root beer, 7UP, sun chips, etc. However, by 1996 it became apparent theses potential benefits were difficult to accomplish and in 1997 the company underwent a major portfolio restructuring which spun off the company’s restaurants as publicly traded companies. This portfolio restructuring initiative was geared to acquire powerful and emerging brands which would bolster PepsiCo’s profits and dominance within the market.
Through the world’s largest beverage distribution system, consumers in more than 200 countries enjoy the Company’s beverages. The Coca-Cola Company began in 1886 when Atlanta pharmacist, John Pembleton created a caramel liquid formula that he later paired with carbonated water. He began to sell it at a local pharmacy and as they say “the rest is history”. Pemberton died in 1888 and the rights to Coca-Cola were purchased by Atlanta businessman Asa Griggs Chandler for $2,300. Chandler was the company’s first CEO and lead Coca-Cola into the next century primed to conquer the beverage industry.