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An introduction to pepsi corporations goals and history

PepsiCo's overall mission is to increase the value of our shareholder's investment. We do this through sales growth, cost controls and wise investment of resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity.

History of PepsiCo, Inc. Its Pepsi-Cola Company division is the second largest soft drink business in the world, with a 21 percent share of the carbonated soft drink market worldwide and 29 percent in the United States. The Frito-Lay Company division is by far the world leader in salty snacks, holding a 40 percent market share and an even more staggering 56 percent share of the U.

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In the United States, Frito-Lay is nine times the size of its nearest competitor and sells nine of the top ten snack chip brands in the supermarket channel, including Lay's, Doritos, Tostitos, Ruffles, Fritos, and Chee-tos.

Frito-Lay generates more than 60 percent of PepsiCo's net sales and more than two-thirds of the parent company's operating profits. The company's third division, Tropicana Products, Inc. Overall, PepsiCo garners about 35 percent of its retail sales outside the United States, with Pepsi-Cola brands marketed in about 160 countries, Frito-Lay in more than 40, and Tropicana in approximately 50.

As 2001 began, PepsiCo was on the verge of adding to its food and drink empire the brands of the Quaker Oats Company, which include Gatorade sports drink, Quaker oatmeal, and Cap'n Crunch, Life, and other ready-to-eat cereals. Bradham concocted a new cola drink in the 1890s, his friends' enthusiastic response convinced him that he had created a commercially viable product.

For 20 years, 'Doc' Bradham prospered from his Pepsi-Cola sales. Eventually, he was faced with a dilemma; the crucial decision he made turned out to be the wrong one and he was forced to sell. But his successors fared no better and it was not until the end of the 1930s that Pepsi-Cola again became profitable.

Seventy years later, PepsiCo, Inc. PepsiCo's advance to that level was almost entirely an introduction to pepsi corporations goals and history result of its management style and the phenomenal success of its television advertising. Ups and Downs in the Early Years Doc Bradham, like countless other entrepreneurs across the United States, was trying to create a cola drink similar in taste to Coca-Cola, which by 1895 was selling well in every state of the union.

Formerly known as Brad's Drink, the new cola beverage was a syrup of sugar, vanilla, oils, cola nuts, and other flavorings diluted in carbonated water. He also bottled and sold the drink himself. In 1902 Doc Bradham closed his drugstore to devote his attention to the thriving new business. The next year, he patented the Pepsi-Cola trademark, ran his first advertisement in a local paper, and moved the bottling and syrup-making operations to a custom-built factory.

Almost 20,000 gallons of Pepsi-Cola syrup were produced in 1904. Again following the successful methods of the Coca-Cola Company, Bradham began to establish a network of bottling franchises. With little cash outlay, Pepsi-Cola reached a much wider market.

Bradham's first two bottling franchises, both in North Carolina, commenced operation in 1905. By 1907, Pepsi-Cola had signed agreements with 40 bottlers; over the next three years, the number grew to 250 and annual production of the syrup exceeded one million gallons. Pepsi-Cola's growth continued until World War I, when sugar, then the main ingredient of all flavored sodas, was rationed. Soft drink producers were forced to cut back until sugar rationing ended. The wartime set price of sugar--5.

Bradham, like his rivals, had to decide whether to halt production and sit tight in the hope that prices would soon drop, or stockpile the precious commodity as a precaution against even higher prices; he chose the latter course. But unfortunately for him the market was saturated by the end of 1920 and sugar prices plunged to a low of two cents per pound. After several abortive attempts to reorganize, only two of the bottling plants remained open.

In a last ditch effort, he enlisted the help of Roy C. Megargel, a Wall Street investment banker. Very few people, however, were willing to invest in the business and it went bankrupt in 1923. The assets were sold and Megargel purchased the company trademark, giving him the rights to the Pepsi-Cola formula.

Doc Bradham went back to his drug dispensary and died 11 years later. Megargel reorganized the firm as the National Pepsi-Cola Company in 1928, but after three years of continuous losses he had to declare bankruptcy. That same year, 1931, Megargel met Charles G. Guth, a somewhat autocratic businessman who had recently taken over as president of Loft Inc. Guth had fallen out with Coca-Cola for refusing the company a wholesaler discount and he an introduction to pepsi corporations goals and history on the lookout for a new soft drink.

He signed an agreement with Megargel to resurrect the Pepsi-Cola company, and acquired 80 percent of the new shares, ostensibly for himself.

Then, having modified the syrup formula, he canceled Loft's contract with Coca-Cola and introduced Pepsi-Cola, whose name was often shortened to Pepsi.

PepsiCo’s Vision Statement & Mission Statement Analysis

Loft's customers were wary of the brand switch and in the first year of Pepsi sales the company's soft drink turnover was down by a third. By the end of 1933, Guth bought out Megargel and owned 91 percent of the insolvent company. Resistance to Pepsi in the Loft stores tailed off in 1934, and Guth decided to further improve sales by offering 12-ounce bottles of Pepsi for a nickel--the same price as six ounces of Coke.

The Depression-weary an introduction to pepsi corporations goals and history of Baltimore--where the 12-ounce bottles were first introduced--were ready for a bargain and Pepsi-Cola sales increased dramatically. He also moved the entire American operation to Long Island City, New York, and set up national territorial boundaries for the bottling franchises. In 1936, Pepsi-Cola Ltd. In a complex arrangement, Guth had organized Pepsi-Cola as an independent corporation, but he had run it with Loft's employees and money.

After three years of litigation, the court upheld Loft's contention and Guth had to step down, although he was retained as an adviser. Carkner was elected president of the company, now a subsidiary of Loft Inc. Mack established a board of directors with real voting powers to ensure that no one person would be able to wield control as Guth had done.

From the start, Mack's aim was to promote Pepsi to the hilt so that it might replace Coca-Cola as the world's best-selling soft drink. The advertising agency Mack hired worked wonders. In 1939, a Pepsi radio jingle--the first one to be aired nationally--caught the public's attention: Twelve full ounces, that's a lot. Twice as much for a nickel, too.

Pepsi-Cola is the drink for you. In 1940, with foreign expansion continuing strongly, Loft Inc. The new firm, formed in 1941, used the name Pepsi-Cola Company since it was so well-known. Pepsi's stock was listed on the New York Stock Exchange for the first time.

  • In the early 21st century, PepsiCo focused on expanding its operations in other countries, notably Russia, which was its second largest market;
  • How Pepsi Won the Cola Wars;
  • Then, having modified the syrup formula, he canceled Loft's contract with Coca-Cola and introduced Pepsi-Cola, whose name was often shortened to Pepsi;
  • Presumably, had a regular can been used, Pepsi-Cola would have sloshed aimlessly around the gravity-free cabin;
  • An even more tempting target soon attracted PepsiCo's attention;
  • Reinemund was named the heir apparent.

Sugar rationing was even more severe during World War II, but this time the company fared better; indeed, the sugar plantation Pepsi-Cola acquired in Cuba became a most successful investment. But as inflation spiraled in the postwar U. The public needed time to get used to paying six or seven cents for a bottle of Pepsi which, as they remembered from the jingle, had always been a nickel.

In other respects, 1948 was a notable year. Pepsi moved its corporate headquarters across the East River to midtown Manhattan, and for the first time the drink was sold in cans.

The decision to start canning, while absolutely right for Pepsi-Cola and other soft drink companies, upset the franchised bottlers, who had invested heavily in equipment.

  • After taking over leadership of PepsiCo, Enrico quickly faced major problems in the overseas beverages operations, including big losses that were posted by its large Latin American bottler and the defection of its Venezuelan partner to Coca-Cola;
  • Pepsi-Cola is the drink for you;
  • Herbert Barnet succeeded him as chairman and Joan Crawford was elected a board member;
  • It has fun-for-you beverages and snacks;
  • The wartime set price of sugar--5;
  • Resistance to Pepsi in the Loft stores tailed off in 1934, and Guth decided to further improve sales by offering 12-ounce bottles of Pepsi for a nickel--the same price as six ounces of Coke.

The company had to learn the hard way that as canned drinks gained a larger share of the market, vending machine sales would become increasingly important. Steele, took over as president and chief executive officer, bringing 15 other Coke executives with him. Steele continued the policy of management decentralization by giving broader powers to regional vice-presidents, and he placed Herbert Barnet in charge of Pepsi's financial operations.

Steele's outstanding contribution, however, was in marketing. He launched an extensive advertising campaign with the slogan 'Be Sociable, Have a Pepsi. By the time Alfred Steele married movie star Joan Crawford in 1954, a transformation of the company was well underway.

PepsiCo, Inc.

Crawford's adopted daughter, Christina, noted in her best-seller Mommie Dearest: Pepsi was giving Coke a run for its money in every nook and hamlet of America. Al Steele welded a national network of bottlers together, standardized the syrup formula. Joan Crawford became the personification of Pepsi's new and glamorous image.

She invariably kept a bottle of Pepsi at hand during press conferences and mentioned the product at interviews and on talk shows; on occasion she even arranged for Pepsi trucks and vending machines to feature in background shots of her movies.

The actress also worked hard to spread the Pepsi word overseas and accompanied her husband, now chairman of the board, on his 1957 tour of Europe and Africa, where bottling plants were being established.

  • Sugar rationing was even more severe during World War II, but this time the company fared better; indeed, the sugar plantation Pepsi-Cola acquired in Cuba became a most successful investment;
  • PepsiCo noted that, while it took the average U;
  • From Words to Action;
  • Kendall attended the Moscow Trade Fair that year and persuaded U.

Steele died suddenly of a heart attack in the spring of 1959. Herbert Barnet succeeded him as chairman and Joan Crawford was elected a board member. By that time, young adults had become a major target of soft drink manufacturers and Pepsi's advertisements were aimed at 'Those who think young.

Kendall, head of Pepsi-Cola International, is still regarded as one of the great coups in the annals of advertising. Kendall attended the Moscow Trade Fair that year and persuaded U.

Our History

As the cameras flashed, Khrushchev quenched his thirst with Pepsi and the grinning U. Vice-President stood in attendance. The next day, newspapers around the world featured photographs of the happy couple, complete with Pepsi bottle. His rise to the top of the company was legendary. He had been an amateur boxing champion in his youth and joined the company as a production line worker in 1947 after a stint in the U.

He was later promoted to syrup sales where it quickly became apparent that he was destined for higher office. Ever pugnacious, Kendall has been described as abrasive and ruthlessly ambitious; beleaguered Pepsi executives secretly referred to him as White Fang.

Under his long reign, the company's fortunes skyrocketed. Pepsi-Cola's remarkable successes in the 1960s and 1970s were the result of five distinct policies, all of which Kendall and his crew pursued diligently: The postwar baby-boomers were in their mid- to late teens by the time Kendall came to power.

Pepsi's got a lot to give. Company brands introduced in the 1960s included Patio soft drinks, Teem, Tropic Surf, Diet Pepsi--the first nationally distributed diet soda, introduced in 1964--and Mountain Dew, acquired from the Tip Corporation, also in 1964. Pepsi Light, a diet cola with a hint of lemon, made its debut in 1975, and a few years later Pepsi tested the market with Aspen apple soda and On-Tap root beer.