Pepsi Case Study

Case Study (Analysis)

Submitted by: Anselmo, Danille Bagtas, Catherine Joy E. Balana, Sherrie Rose N. Del Rosario, Brian Nethercott, Nethercott, Leula Jean Sardino, ladys R.

Submitted to: !ro". Juni#er $. %ulueta

I.

Time Context

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Born in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is the invention of Caleb Bradham left!, a pharmacist and dr"gstore o#ner  in $e# Bern, $orth Carolina. The s"mmer of 1898, as "s"al, #as hot and h"mid in $e# Bern, $orth Carol aroliina. na. %o a yo"ng o"ng phar pharma maci cist st name named d Caleb aleb Brad Bradha ham m bega began n e&perimenting #ith combinations of spices, '"ices, and syr"ps trying to create create a refres refreshin hing g ne# drink drink to serve serve his c"stom c"stomers ers.. (e s"ccee s"cceeded ded  beyond all e&pectations beca"se he invented the beverage bev erage kno#n aro"nd the #orld as Pepsi-Cola. Caleb Bradham kne# that to keep people ret"rning to his pharmacy, he #o"ld have to t"rn it into a gathering place. (e did so by concocting his o#n special beverage, a soft drink. (is creation, a "ni)"e mi&t"re of kola n"t e&tract, vanilla and rare oils, became so pop"lar his c"stomers named it *Brad+s rink.* Caleb decided to rename it *Pepsi-Cola,* and advertised his ne# soft drink. People responded, and sales of Pepsi-Cola started to gro#, convincing him that he sho"ld form a company to market the ne# beverage. n 19/, he la"nched the Pepsi-Cola Company in the back room of his pharmacy, and applied to the the 0.%. 0.%. Patent Patent ffi ffice ce for for a trad tradem emar ark. k. 2t firs first, t, he mi&ed mi&ed the the syr" syr"p p hims himsel elff and and sold sold it e&cl"sively thro"gh soda fo"ntains. B"t soon Caleb recogni3ed that a greater opport"nity e&isted to bottle Pepsi so that people co"ld drink it any#here. The b"siness began to gro#, gro#, and on 4"ne 15, 196, *Pepsi-Cola *Pepsi-Cola** #as officially officially registered registered #ith the 0.%. Patent ffice. That year, Caleb sold 7,958 gallons of syr"p, "sing the theme line *&hilarating, nvigorating, 2ids igestion.* (e also began a#arding franchises to bottle Pepsi to independent investors, #hose n"mber gre# from '"st t#o in 19, in the cities of Charlotte and "rham, $orth Carolina, to 1 the follo#ing year, and : by 197. By the end of 191, there #ere Pepsi-Cola franchises in /: states. Pepsi-Cola+s first bottling line res"lted from some less-than-sophisticated engineering in the back  room of Caleb+s pharmacy. B"ilding a strong franchise system #as one of Caleb+s greatest achievements. ;ocal Pepsi-Cola bottlers, entreprene"rial in spirit and dedicated to the prod"ct+s s"ccess, provided a st"rdy fo"ndation. They #ere the cornerstone of the Pepsi-Cola enterprise. By 197, the ne# company #as selling more than 1, gallons of syr"p per year. ithin t#o years, Pepsi #o"ld earn ?1 million for its ne# o#ner. >ith >ith the res"rgence res"rgence came ne# confidence, confidence, a rarity rarity in those days  beca"se the nation #as #as in the the early early stages stages of a seve severe re econ economi omicc decl declin inee that that came came to be kno# kno#n n as the the itho"t 1958 Pepsi str"ggles to enhance its brand image. %ometimes referred to as *the kitchen cola,* as a conse)"ence of its long-time positioning as a bargain brand, Pepsi no# identifies itself #ith yo"ng, fashionable cons"mers #ith the *Be %ociable, (ave a Pepsi* theme. 2 distinctive *s#irl*  bottle replaces Pepsi+s earlier straight-sided straight-sided bottle. 1959  %oviet Premier $ikita Fhr"shchev and 0.%. Gice-President Eichard $i&on meet in the soon-to-be-famo"s *kitchen debate* at an international trade fair. The meeting, over Pepsi, is  photo-captioned in the 0.%. as *Fhr"shchev