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Strategic Analysis of Pepsi-Cola Co.

In: Business and Management

Submitted By Toby911
Words 2630
Pages 11
Introduction

Soft drinks, more popularly known as sodas, are not exactly referred to as items of necessity. People can live without sodas. In fact, people might be safer if they don’t drink soft drinks so much. And yet, soft drinks somehow make it to the top of the list of items most bought by the average consumer. Why is this, exactly? Well, for one thing, sodas are delicious. They stand between liquor and juice. Those who are too young to drink beer but think fruit juice is too juvenile can order sodas. Those too old and are putting their health at risk by drinking hard drinks can enjoy soft drinks and no one would think any less of them. In short, sodas have a mass appeal. They carry an image with them; an image of a person with a comfortable lifestyle.

This essay will take a look at the company Pepsi Cola. For a better understanding of the subject company, this paper will delve into a brief history of the Pepsi Company’s growth over the years and the effects of competition on Pepsi’s strategies in the international and domestic market. This essay will attempt to discuss the effectiveness of Pepsi’s marketing strategies and its results.

Body

Pepsi was one of several other brands that got their start in the late 1800s. A North Carolina pharmacist named Caleb Bradham invented "Brad's Drink" in 1893, which was later renamed Pepsi-Cola. Pepsi’s early growth was less significant than that of Coke's, and its real strength as a competitor to Coke began after Alfred Steele became CEO in 1950, a time when Pepsi was nearly bankrupt. Steele was expected to liquidate the Pepsi-Cola Co. Instead, he made it his goal to "beat Coke" (Wolburg, 2003).

Pepsi Cola has taken part of that appeal and has used it in several different marketing strategies. Pepsi was born after Coca Cola, or Coke. It began in North Carolina, invented

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