Assignment Company Profile
The identified company for this project is Pepsi.Co. It is a Multinational corporation in the industry of food and beverages. Among its most recognized products in the world is Pepsi Cola that airs in commercials in almost all marketing channels. The estimated market share for Pepsi.Co in the U.S is 24.1% and 8.4% in the global market (Wiener-Bronner, 2018). Although its close competitor, Coke, is the market leader, Pepsi has a market cap of $188.6 billion compared to $185.8billion of Coke. Increasing consumer awareness of healthy foods has been shaping Pepsi's strategic objectives.
Brief History
Caleb Bradham, a North Carolinian pharmacist, invented the original cola formula in 1893. He was running a soda fountain in a drugstore selling Brad's drink, later known as Pepsi-Cola. In 1903, Bradham started to sell soda concoctions to vendors across the state and was already franchising in 24 states under Pepsi's brand name. The product was marketed as a digestive aid, and as the small company grew, it decided to use celebrities in marketing. In 1923, the founder gambled on the changes in sugar prices during World War I, and the results were disastrous, leading to Pepsi's bankruptcy in 1923 (Pepsi.Co, n.d). Several investors bought and resold the company until it no longer attracted investors. One of them, Charles G. Guth, tried to resell the brand to the executives by were not willing to risk their resources. Guth reinvented the ailing Pepsi by repackaging the drinks in 12-ounce bottles for in five cents, twice the prices for a 6-ounce bottle offered by Coke (Pepsi.Co, n.d). He also embarked on a vigorous marketing campaign that results in the Nickel Nickel campaign accredited as the most effective ad of the 20th century.
Apart from packaging and marketing strategies, the company refined its supply chain and ensured it had enough sugar inventories in the Second World War. The drink was familiar to the U.S. troops across the world and remained popular after the war (Bellis, 2019). The company aligned its marketing, presented itself as the choice for Baby Boomers, and expanded its product line to include the first diet soda in 1964. In the same year, it acquired the Mountain Dew and later the Frito-Lay that makes snacks. Today, Pepsi is significantly diversified with numerous product lines of snacks and drinks with different flavors targeting global consumers.
Milestones from the History
Pepsi has made significant strides in the industry. The first one is rising from bankruptcy to top the industry as among the global leaders in the food and beverage industry.
Pepsi has significantly grown from a simple drink sold in a pharmacy to a globally renowned brand. The company has grown substantially by franchising, acquisition, and merging. Apart from that, Pepsi has also diversified its products' portfolio according to different customer needs.
Pepsi has made another significant stride by presenting its brand as a trendy and ideal choice for young people. This achievement has enabled the company to build loyalty from young consumers all over the world.
Opportunity for Competitiveness
Pepsi has an opportunity to reinvent its business strategy by producing organic products that meet consumers' health needs.
Function of Management
Pepsi's management is responsible for laying the foundation and implementing the diversification plan. It has a role of acquiring, mobilizing, and allocating resources towards implementing the diversification plan.
References
Bellis, M. (2019). The history of Pepsi Cola. Retrieved from https://www.thoughtco.com/history-of-pepsi-cola-1991656
Pepsi.Co. (n.d) Our history. Retrieved from https://www.pepsico.com/about/about-the-company
Wiener-Bronner, D. (2018). Why Coke is winning the cola wars. CNN Business. Retrieved from https://money.cnn.com/2018/02/20/news/companies/cola-wars-coke-pepsi/index.html#:~:text=But%20when%20it%20comes%20to,Beverage%
Michelle_Michy
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