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Pepsi Cola was first made by a pharmacist known as Caleb Bradham, and like other pharmacists during this time Caleb established a soda fountain in his drug store. His most favourite beverage was something he called ‘Brads drink’. This is what was produced in the summer of 1893, and afterwards was re-labelled to a new brand Pepsi Cola in 1898. He cleverly purchased the trademark ‘Pep Cola’ for $100 from a rival company in New York. (Katz, 2008)
However, after he enjoyed seventeen years of success, Caleb sadly lost the product due to gambling on the price fluctuation of sugar during World War I. This happened because of his believe that sugar price would rise as demand increased, unfortunately this never happened. Such outcome left him with a lot of sugar but there was no place for its selling. Sadly, his company faced bankruptcy in 1923.
New Pepsi Cola Owners
In 1931, the company was bought by the lofty candy company. The president immediately started to reformulate the Pepsi Drink. One of the remarkable things he did was changing the image of the product. (Katz, 2008)
Strategies used by the company
One of the challenges with Pepsi was to make sure that the new company gave a new brand of the soft drink. Looking back, it is fair to state that the foremost iteration of the Pepsi logo was a somehow odd, however, afterwards, it evolved into something we are familiar with now. In the 1940s, for example, a person could easily realize the similarity between the Pepsi logo and the Coca Cola. The branding helped in making people and consumers identify themselves with the Coke brand.
However, the brand has evolved since then. In 1942, World War II brought a little loyalty in the Pepsi Company, which began using the simplified type of the product. It had a combination of red and white strips to symbolize love and admiration for the much-loved country.
Success with consumers
When it came to the audience of Pepsi, the new branding was also meant to enable the company to have a specific type of audience that would help the product become popular. For example, one method was to utilize the young audience. Several of the Pepsi ads were in the past targeted at the young people who were thrilled with entertainment, games and most popular music. During branding, Pepsi was brilliant to persuade all categories of celebrities to take part in advertising. The company managed to retract such musician as Ray Charles and various singers, including Britney Spears and the most famous slain songster Michael Jackson. This enabled the product to become more popular all around the world. From this moment, Pepsi has been changing its style and design. Every style has been simultaneously accepted and rejected by the modern consumers.
Although, the product has seen its brand’s popularity grow and even today we still can observe how this brand keeps on changing and evolving. The product continues to face more new life stages in product designs and sponsorship programs. At times, the product has also suffered rejection of the customers. This often has required the company’s management to make a decision for going back to the old design.
Consistency of change
However, with the new change in management and marketing structures, it can be seen that Pepsi is able to recover from the public’s rejection of their new brand by never giving up on new ways. The redesign of Pepsi’s drinks has remained almost the unchanged except for Sierra Mist, which odd and foggy design has been forgotten by now and substituted for a latest one that is fairly eye-catching by comparison. In general, the basic motivation of Pepsi has stayed more principally the same with the use of comedy and music in its commercials. For instance, this year, most American football competitions have been extremely featured with Pepsi commercials and website.
On the other hand, the most significant modification of the product became the branding campaign called the Pepsi Refresh Project that keeps on running currently. During this time, the company has been seen to work with the community as a way of creating consumer relations and raise awareness about the product. Pepsi gives donation to people with immense ideas as long they improve their society. The project provides a great direction for the product. For example, there was its recent work in Egyptian revolution, where the company played a great part in fighting for change. This in turn enables the product to become more popular in the Arab countries and in the African continent. (Stoddard, B 2007).
As it has been discovered from the history of the Pepsi brand, re-introducing or re-defining a company or a product is one of the best strategies. The example of Pepsi Company forces to wonder how one can make a better and bigger product. If the company is a few years old and the brand or product is poorly defined or marketed, there is a question on how one reinvents it, and perhaps the mistakes and the success of Pepsi have been able to give an answer.
Katz, A. (2008). Celebrating a century of refreshment: Peps – the First 100 Years, New York: Macfadden Communications.
Stoddard, B. (2007). Pepsi Cola-100 years, Los Angeles: General Publishing Group.