Beverage Industry Essay Example

first made in New Bern, North Carolina in the United States in the early1890s by pharmacist Caleb Bradham. On August 28, 1898, "Brad's drink" was changed to "Pepsi-Cola “and later trademarked on June 16, 1903. As Pepsi was initially intended to cure stomach pains, Bradham coined the name Pepsi from the condition dyspepsia (stomach ache or indigestion). It was made of carbonated water, sugar, vanilla, rare oils, pepsin and kola nuts. In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore into a rented warehouse.

That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce bottles and sales increased to 19,848gallons. In 1905, Pepsi received its first logo redesign since the original design of 1898. In 1906, the logo was changed again. That same year, the US federal government passed the Pure Food and Drug Act, banning substances such as arsenic, lead, barium, and uranium from food and beverages. This forced Coca-Cola to change their formula; however, Pepsi-Cola was already free of these substances, and thus claimed they already met federal requirements.

In 1909, automobile race pioneer Barney Oldfield endorsed Pepsi-Cola in newspaper ads as "A bully drink... refreshing, invigorating, a fine bracer before a race". In 1923, PepsiCo went bankrupt due to high sugar prices as a result of World War I, assets were sold and Roy C. Megargel bought the Pepsi trademark. Eight years later, the company went bankrupt again, resulting in a reformulation of the Pepsi-Cola syrup formula. In the following years, the drink gained in popularity and in 1934, debuted the 12-ounce drink. In 1964, the Diet Pepsi variation of the drink debuted, being the United States first

national diet soft drink.

In 1980, Pepsi introduced the Pepsi Challenge marketing campaign where PepsiCo set up a blind tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste tests the majority of participants picked Pepsi as the better tasting of the two soft drinks. Pepsi took great advantage of the campaign with television commercials reporting the test results to the public. While some claim that Pepsi tastes identical to Coca-Cola, others say they can detect a difference. In the past, the difference in taste between Pepsi and Coca-Cola's Coke was even greater than it is today.

When the Pepsi taste became more popular, Coca-Cola adapted their drink to be closer to the American taste of Pepsi (New Coke). [3] Although Pepsi claimed this a victory for their brand of cola, Coca-Cola soon reverted because, while testing showed the taste of the new Coke was better, consumers preferred Coca-Cola to stay the same. Coke remains the more popular of the two. PRODUCTS OF PEPSI AVAILABLE IN THE MARKET. * PEPSI * Mirinda * Mountain DEW * 7 UP * Slice * Aquafina(Mineral Water)  The Coca-Cola Company exists to benefit ; refresh every one it touches. Founded in 1886, Company is the worlds leading manufacturers, marketer, ; distributor of non alcoholic beverages Concentrates ; syrups, used to produce nearly 400 beverages brands.

Its corporate head Quarters are In Atlanta, with local operation in over 200 countries around the worlds most widely recognised brands. It is the single global competitor of PepsiCo. COCA-COLA INDIA: After a 16 years absence, Coca-Cola returned to India in 1993. The company’s presence in India was cemented in November that year in a deal that gave drinks Coca-Cola

ownership of the nation’s top soft brands and bottling network. Coca-cola India has made significant investments to build and continually improve its business in India, including new production facilities, waste water treatment plants, distribution system and marketing equipment.

During the past decade, the Coca-cola system has invented mote than US$ 1 billion in India. COCA-COLA PRODUCTS IN INDIA: Leading Indian brands Thumps Up, Limca, Maaza, Citra and Gold Spot join the company’s international family of brands including Coca-cola, diet coke, Sprite and Fanta, plus the Schweppes product range. Coke still outlets PEPSI in all most all areas of the worlds. Saudi Arabia and the Canadian provinces of Prince Edward Island. New found land and Labrador, Ontario ; Quebec Are some of few exceptions.

By most accounts, coca – cola was India’s leading soft drink until 1977 when it left India after a new government order the company to turn over its secret formula for coca – cola and dilute its sake in its Indian unit as required by the foreign exchange regulation act (FERA). In 1988, Pepsi gained entry to in did by creating o joint venture with the Punjab agro industrial corporation (PAIC) and Voltas India limited. This joint venture marketed and sold Lehar Pepsi until 1991 when the use of foreign brands was allowed; Pepsi bought out its partners and ended the joint venture in 1994.

In 1993, Coca – cola returned in pursuance of India’s liberalization policy. In 2005, coca – cola and Pepsi together held 95% market share of soft – drink sales in India. Coca – cola India’s market share was 60. 9%. Other claim that due to rumours of the use of

cocaine, coke was banned for a long time in India; recently the ban was lifted, how ever, Pepsi has maintained a commanding market share. Pepsi had long be the drink of Canadian, Francophone ; it continues to hold its dominance by replying on local Quebecois celebrities (Specially Claude Meunier, of La Petite Vie Fame) to sell its product. Pepsi” eventually became an offensive nick name for Francophone’s viewed as a lower class by Anglophones in the middle of 20th centaury. 36 The termed is now used as a historical reference to French-English linguistic animosity (During the partitionist debate surrounding in 1995 referendum, a pandit wrote, “And a wall will be erected the along st-laurent street [the traditional divide between french and English in Montreal] Because some people were throwing coke bottle one way and Pepsi Bottles the other way”) According to consumers’ reports, in 1970, the rivalry continued to heat up the market.

Research proved that the Pepsi is preferred over coke. The way that they prove this way by blind taste tests those were conducted in stores. These tests were called “challenge Booths”. The sales of Pepsi started to climb, and Pepsi kicked of the “challenge” across the nation. Marketing Strategy Coke When it comes to marketing strategy blunders, pretty much everybody remembers the nosedive failure of New Coke, right? But what most people don’t know is the fascinating story behind the story, ; the valuable lesson it reveals. In the early eighties, Coke was about to lose a marketing trump card to Pepsi.

Coke’s markets hare had been in free fall since the end of the war, declining from 60% at that time, to just

24% in 1983. Pepsi was about to be able to claim that not only did it taste better than Coke (as proven in blind taste tests), but also that it was actually more popular. This would have added even more fuel to Pepsi’s already significant marketing momentum. While Coke was also losing market share to other new market entries, and increasing consumer preference for diet, citrus, ; caffeine-free beverages etc. , Pepsi’s marketing strategy was continuing to win new customers.

Obviously, people preferred the taste of Pepsi! Better taste was the main thrust of their advertising. Why else would anybody drink such an otherwise worthless mixture of ingredients? This fact was further born out with the runaway success of Diet Coke. Coke actually developed it from the ground up to taste more like Pepsi, rather than simply replacing the sugar content of the original recipe with artificial sweeteners all of the facts ; evidence pointed to Coke having a taste problem with the original recipe. Coke had in fact been working in secret for years on anew one.

Drawing on the success of Diet Coke, Coke’s marketing strategy called for the modification of that recipe to a sugar based drink. They felt they could finally turn the tide by introducing “NEW Coke”, based on that formula. In prelaunch blind taste tests, people thought the new Coke tasted sweeter ; smoother than the original. Extensive research revealed that people preferred the New Coke to both the original Coca Cola recipe ; Pepsi. Statistically speaking, the taste of New Coke was significantly preferable. New Coke was the solution, but what to do with the original?

If they kept both on the

market, it was a sure bet that Pepsi would be able to claim that it was more popular than both, at least for a time! And a marketing strategy that called for the promotion of a new; an old Coke would only confuse the public; dilute the brand. The original recipe was dropped. So what happened when new Coke was introduced? It bombed completely, utterly! Here’s the brilliant tagline that they used to introduce it. “The Best Just Got Better, Coke Is It! ” Gee, that looks like a winner. People hated the new Coke, many without even having to taste it.

And they were incensed that the original had been “stolen” from them. One hundred years, countless millions of dollars in advertising had made Coke Cola a part of people’s very identity. Drinking Coca Cola wasn’t about taste at all. It was about mental association. Emotional Opium! The act of raising that funny looking spiral bottle to your lips. The cane sugary fragrance that followed. The sharp carbonated bite that set your throat a blaze with each vigorous swig. For many people, it was anchored deeply to fond, albeit sometimes even imaginary memories.

Coke had no choice but to bring back the original recipe, amid a huge fanfare of publicity, as though it were the second coming. What a hullabaloo about nothing. Sugar water. For god’s sake! If nothing else, this story should prove to you once; for all that it’s not what you do that counts, it’s what you say; how powerfully you say it. And, that your customer’s buy, or don’t buy, for all kinds of seemingly irrational reasons. What’s critically important is not

your product, but how your marketing strategy relates ownership of that product to your buyer’s beliefs, feelings, desires!

It also demonstrates that “me to” can be a very dangerous marketing strategy. While huge companies like Coke can afford to blow through billion dollar advertising budgets like there’s no tomorrow, as a Guerrilla marketer, I urge you to avoid expensive frontal assaults; one-upmanship like the plague. Be creative instead, ; seek to outflank the enemy! Marketing Strategies of Pepsi. In 1975, PepsiCo introduced the Pepsi Challenge marketing campaign where PepsiCo set up a blind tasting between Pepsi-Cola and rival Coca-Cola.

During these blind taste tests the majority of participants picked Pepsi as the better tasting of the two soft drinks. PepsiCo took great advantage of the campaign with television commercials reporting the test results to the public In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy. In 2002, the strategy was cited by Promo Magazine as one of 16 "Ageless Wonders “that "helped redefine promotion marketing. "Source: Promo Magazine, 2002. Celebrity endorsers As with most popular soft drinks, Pepsi and its associated beverages have had various celebrity endorsers like Jeff Gordon, David Beckam and Christina Aguilera.

Marketing Of the Product Through Adds and Launches. For over 100 years, Pepsi-Cola has produced some of the finest soft drink ads available anywhere in the world. From today's "Joy of Pepsi," as sung by Britney Spears, to yesterday's "Nickel, Nickel" (1939), our ads are as memorable as the products we produce. Check out highlights of our favourite ads here. 2004: Pepsi unveils five new TV commercials for Pepsi and Sierra Mist on Super Bowl XXXVIII, making this the 19th straight year that Pepsi

has advertised in the big game. On Super Bowl Sunday, Apple and Pepsi officially launch a historic promotion to legally give away millions of free songs to Mac and Windows PC users from Apple's iTunes Music Store. • On the Academy Awards telecast, Diet Pepsi stole the spotlight as the country’s fastest-growing major soft drink bowed a new advertising campaign with the tagline, “Diet Pepsi. It’s the Diet Cola. The zero-calorie cola brand illustrates how it is the best option to go with food and social occasions, much like its sister brand, Pepsi-Cola. Two popular sportscasters help turn life’s everyday moments into a cause for celebration in a new advertising campaign for Pepsi EDGE, the new cola with full- flavoured taste but half the sugar, crabs & calories of regular colas. The campaign tagline, "This moment deserves a Pepsi EDGE," reminds consumers that they can reward themselves with a Pepsi EDGE for completing even the simplest of tasks. • Mountain Dew brings nostalgia back into pop culture as it introduces new commercials featuring the classic Mad Magazine "Spy vs. Spy" characters — who will stop at nothing to get their Dew. 003: Pepsi-Cola unveils a new advertising campaign, "Pepsi. It's the Cola," which is the brand's first major campaign shift since 1999. The new campaign highlights the popular soft drink that goes with everything from food to fun. • Pepsi's last major campaign change was in 1999, when it debuted "The Joy of Cola," which became "The Joy of Pepsi" in 2000. • Pepsi updates its look with a bolder, more contemporary image that better captures the brand's youthful attitude. • Mountain Dew offers its third line

extension with Mountain Dew Livewire, combining the unique citrus taste of Mountain Dew with a bold orange flavour.

Available summer 2003. • Pepsi's blockbuster summer promotion "Pepsi Play for a Billion" gives 1,000 consumers the chance to play for $1 billion on a live television show on The WB. A guaranteed $1 million prize winner will be chosen and will then have a chance to win $1 billion without forfeiting the $1 million prize. • In September, Richard Bay, a 42-year-old high school teacher from Princeton, West Virginia, became a millionaire on "Pepsi Play for a Billion" on The WB. Bay and the television audience then held their collective breath to see if he would also win the billion dollars.

Instead, his number was two digits off the billion-dollar number, but Bay was still pleased with his cool million. 2002: In March, supermodel Cindy Crawford helps introduce a new look for Diet Pepsi. The updated graphics better represent the brand's light, crisp, refreshing qualities. • Pepsi-Cola teams up with the National Football League, becoming its Official Soft Drink Sponsor. • Pepsi declares, "It's a blue thing," and unveils Pepsi Blue in July. A fusion of berries with a splash of cola, the blue-hued soft drink is created by and for teens.

Through nine months of research and development, Pepsi asks young consumers what they want most in a new cola. Their response: "Make it berry and make it blue. " • In December, American music and film sensation Beyonce Knowles is welcomed as the newest member of the Pepsi family. 2001: The popular "Joy of Cola" tagline gets an update, becoming the "Joy of Pepsi. " Three months later, Britney Spears

stars in a blockbuster Pepsi commercial that breaks during the Academy Awards. An hour before the telecast, the high-energy spot debuts online, where more than 2 million fans click their way to Britney's own version of the "Joy of Pepsi. • Thirsty consumers are invited to "discover a sensation as real as the streets," when cherry-flavoured Mountain Dew Code Red is introduced. • Pepsi puts a little twist on a great thing, unveiling the first national TV commercial for new lemon-flavoured Pepsi Twist. 2000: The popular Pepsi Challenge makes its return, and consumers across the country let their taste decide the best cola and one-calorie cola. Helping launch the Challenge are two of baseball's top sluggers – Sammy Sosa and Ken Griffey Jr. On the airwaves, the "Joy of Cola" campaign is a hit as "Pepsi Girl" Hallie Eisenberg rocks with pop star Faith Hill and perennial rockers KISS. • Among those doing the Dew is hip-hop artist Busta Rhymes, and Aquafina launches its first-ever television advertising campaign.

Marketing

The world's favourite drink. The world's most valuable brand. The most recognizable word across the world after OK. Coca-Cola has a truly remarkable heritage. From a humble beginning in 1886, it is now the flagship brand of the largest manufacturer, marketer and distributor of non-alcoholic beverages in the world.

Coca-Cola returned to India in 1993 and over the past ten years has captured the imagination of the nation, building strong associations with cricket, the thriving cinema industry, music etc. Coca-Cola has been very strongly associated with cricket, sponsoring the World Cup in 1996 and various other tournaments, including the Coca-Cola Cup in Sharjah in the late nineties. Coca-Cola's advertising

campaigns Jo Chaho Ho Jaye and Life ho to Aisi were very popular and had entered the youth's vocabulary.

In 2002, Coca-Cola launched the campaign "Thanda Matlab Coca- Cola" which sky-rocketed the brand to make it India's favourite soft-drink brand. In 2003, Coke was available for just Rs. 5 across the country and this pricing initiative together with improved distribution ensured that all brands in the portfolio grew leaps and bounds. Coca-Cola had signed on various celebrities including movie stars such as Karishm a Kapoor, cricketers such as Srinath, Sourav Ganguly, and southern celebrities like Vijay in the past and today, its brand ambassadors are Aamir Khan, Aishwarya Rai, and Vivek Oberoi and cricketer Virendra Sehwag.