Pepsi is one of the most famous soft drinks brand in the world, known for its fresh flavor and bold brand. But your journey was not always soft. From his humble beginning to becoming a global veteran, Pepsi faced many challenges. Let's take a look at how Pepsi was made, its struggle was abolished, and why it is so successful today.
Who invented Pepsi and how?
Pepsi was built in 1893 by New Burn, a pharmacist of North Carolina, Kaleb Bradam. Originally, it was not called Pepsi Buradham, named "Brad's drink". He created it as a digestive aid and energy booster at his pharmacy.
At that time, another famous soda, Coca-Cola, was already popular. But Bradam believed that there was something special in his drink. In 1898, he named it "Pepsi-Cola", which was inspired by the word "dyspepsia" (means indigestion) and the cola nut used in the recipe.
Initial success and struggle
Pepsi began well, and until 1902 Bradam founded the Pepsi-Cola Company. However, there was trouble after World War I (1914–1918). The price of sugar (a major component) was shot, and Bradam bought large amounts at high prices. When sugar prices suddenly fell, they suffered heavy losses and announced insolvency in 1923.
Pepsi’s Comeback
After Bradham’s failure, Pepsi was sold multiple times. In 1931, the company was bought by Charles Guth, the president of Loft Inc., a candy company. Guth was in a dispute with Coca-Cola over syrup prices, so he decided to revive Pepsi.
The Genius Pricing Strategy
During the Great Depression (the 1930s), people had very little money. Pepsi took advantage of this by offering 12 ounce bottles for only 5 cents-Coca-Cola was charged for 6 ounces. This "twice for a nickel" campaign made Pepsi a hit among the budget conscious consumers.
Competition with Coca-Cola
Coca-Cola (and still) was the big competitor of Pepsi. Over the years, Pepsi used clever marketing to compete:
1975: The Pepsi Challenge = Blind taste tests showed many people preferred Pepsi over Coke.
1980s: The Cola Wars = Both brands spent millions on ads, with Pepsi using celebrities like Michael Jackson and Madonna.
Pepsi’s Youthful Image = While Coke focused on tradition, Pepsi branded itself as the choice of the young and energetic.
Global Expansion
Pepsi didn’t just stay in America it went global.
In the 1950s and 60s, it entered markets in Europe, Asia and Soviet Union. Interestingly, Pepsi was the first American product sold in the USSR due to a unique deal, where the Soviet Union paid Pepsi to the ships instead of cash with vodka and ships!
Modern Pepsi: More than just one soda
Today, PepsiCo (original company) owns many brands, including:
Lays (chips)
Getorade (Sports Drink)
Tropicana (juice)
Quaker Oats (Grain)
Pepsi has also introducing diet and zero-sugar versions of soft drinks.
Why now Pepsi is very successful?
Smart Marketing = Pepsi knows how to connect with young people through advertising and social media.
Miscellaneous products = It is no longer a soda company.
Global Access = Available in almost every country.
Innovation = always new tastes and beginning of products.
Pepsi traveling from a small pharmacy drink to a global brand is filled with ups and downs. It survived bankruptcy, difficult competition and changing markets. Today, it is strong due to smart decisions, bold marketing and ability to adapt. Whether you like Pepsi or Coca -Cola, no one denies Pepsi's amazing success story.
0 Comments