Pepsi free essay sample

The main products of the company comprises of different soft drinks brand includes pepsi,pepsi light ,pepsi max,7up,mountain dew,etc.. The company consists of: Frito-Lay Company, the largest manufacturer and distributor of snack chips; Pepsi-Cola Company, the second largest soft drink business and Tropicana Products.In order to promote their pepsi brand, the marketing division of the company has been able to utilize different marketing strategy in order to competitive in the market place. PepsiCo, Inc. is one of the most successful consumer products companies in the world, with 2000 revenues of over $20 billion and 125,000 employees. PepsiCo brands are among the best known and most respected in the world and are available in about 190 countries and territories. iIn 2000, PepsiCo has a reported net sale of $20,348 and a comparable net sale of $20,144 in comparison to its 1999’s net sales of $20,367 and $18,666 respectively.PepsiCo has increased its comparable net sale of 8% in 2000 while it had an increase of 15% in 1999. This reflects the increasing rate is going slower. On the other hand, PepsiCo’s interest expense declines 39% showing that the company is significantly lower average debt level. Back to 1999, the report shows that the company’s interest expense dropped 8%, which indicates that the company is performing well in managing its financial strategies. in adittion,the different approaches of promotional campaigns have been imposed so as to make the products more appealing to the target market and to make these products marketable.They market their products in pizzahurt,fried chicken restorent. in this restaurant were also used as means to capture customers in to drinking pepsico bevaerages. they used celbrieties for their advertising compaigons for boosting there sale. accordigily 60% of marketing resourses in pepsi are used on advertising. Advertising tools used by company include TV,Magzines. radio. sponcering games like cricket,foot ball.. etc Any way promotion of the produt is the main strength of pepsi co company. Although the result shows the company is performing well in financial strategy. Company History:Pepsi company has long and rich history. the drink is the invention of Caleb Bradham. When Caleb D. Bradham concocted a new cola drink in the 1890s, his friends enthusiastic response convinced him that he had created a commercially viable product. For 20 years, Doc Bradham prospered from his Pepsi-Cola sales. Eventually, he was faced with a dilemma; the crucial decision he made turned out to be the wrong one and he was forced to sell. But his successors fared no better and it was not until the end of the 1930s that Pepsi-Cola again became profitable. Seventy years later, PepsiCo, Inc. as a mammoth multinational supplier of soft drinks, juices, and snack food. PepsiCos advance to that level was almost entirely the result of its management style and the phenomenal success of its television advertising. Ups and Downs in the Early Years Doc Bradham, like countless other entrepreneurs across the United States, was trying to create a cola drink similar in taste to Coca-Cola, which by 1895 was selling well in every state of the union. On August 28, 1898, at his pharmacy in New Bern, North Carolina, Bradham gave the name Pepsi-Cola to his most popular flavored soda.Formerly known as Brads Drink, the new cola beverage was a syrup of sugar, vanilla, oils, cola nuts, and other flavorings diluted in carbonated water. The enterprising pharmacist followed Coca-Colas method of selling the concentrate to soda fountains; he mixed the syrup in his drugstore, then shipped it in barrels to the contracted fountain operators who added the soda water. He also bottled and sold the drink himself. In 1902 Doc Bradham closed his drugstore to devote his attention t o the thriving new business. The next year, he patented the Pepsi-Cola trademark, ran his first advertisement in a local paper, and moved the bottling and syrup-making operations to a custom-built factory. Almost 20,000 gallons of Pepsi-Cola syrup were produced in 1904. Again following the successful methods of the Coca-Cola Company, Bradham began to establish a network of bottling franchises. Entrepreneurs anxious to enter the increasingly popular soft drink business set themselves up as bottlers and contracted with Bradham to buy his syrup and sell nothing but Pepsi. With little cash outlay, Pepsi-Cola reached a much wider market.Bradhams first two bottling franchises, both in North Carolina, commenced operation in 1905. By 1907, Pepsi-Cola had signed agreements with 40 bottlers; over the next three years, the number grew to 250 and annual production of the syrup exceeded one million gallons. Pepsi-Colas growth continued until World War I, when sugar, then the main ingredient of all flavored sodas, was rationed. Soft drink producers were forced to cut back until sugar rationing ended. The wartime set price of sugar5. 5 cents per poundrocketed after controls were lifted to as much as 26. 5 cents per pound in 1920.Bradham, like his rivals, had to decide whether to halt production and sit tight in the hope that prices would soon drop, or stockpile the precious commodity as a precaution against even higher prices; he chose the latter course. But unfortunately for him the market was saturated by the end of 1920 and sugar prices plunged to a low of two cents per pound. Bradham never recovered. After several abortive attempts to reorganize, only two of the bottling plants remained open. In a last ditch effort, he enlisted the help of Roy C. Megargel, a Wall Street investment banker.