Soft drinks, more popularly known as sodas, are not exactly referred to as items of necessity. People can live without sodas. In fact, people might be safer if they dont drink soft drinks so much. And yet, soft drinks somehow make it to the top of the list of items most bought by the average consumer. Why is this, exactly? Well, for one thing, sodas are delicious. They stand between liquor and juice. Those who are too young to drink beer but think fruit juice is too juvenile can order sodas. Those too old and are putting their health at risk by drinking hard drinks can enjoy soft drinks and no one would think any less of them. In short, sodas have a mass appeal. They carry an image with them; an image of a person with a comfortable lifestyle.
This essay will take a look at the company Pepsi Cola. For a better understanding of the subject company, this paper will delve into a brief history of the Pepsi Companys growth over the years and the effects of competition on Pepsis strategies in the international and domestic market. This essay will attempt to discuss the effectiveness of Pepsis marketing strategies and its results.
OVERVIEW OF PEPSI
Pepsi was one of several other brands that got their start in the late 1800s. A North Carolina pharmacist named Caleb Bradham invented “Brads Drink” in 1893, which was later renamed Pepsi-Cola. Pepsis early growth was less significant than that of Cokes, and its real strength as a competitor to Coke began after Alfred Steele became CEO in 1950, a time when Pepsi was nearly bankrupt. Steele was expected to liquidate the Pepsi-Cola Co. Instead, he made it his goal to “beat Coke” (2003).
Pepsi Cola has taken part of that appeal and has used it in several different marketing strategies. Pepsi was born after Coca Cola, or Coke. It began in North Carolina, invented by a pharmacist named . It came out for public use on August 28, 1898. It had the reputation for being a food drink; Bradham was a pharmacist and he claimed that his concoction aided digestion. This claim, in a way, was already a marketing strategy, because during those times, people were always buying medicinal aids for digestion.
Pepsi spread to Canada in 1906, and the year after that, it was registered in Mexico. By 1908, Pepsi had upgraded their transportation delivery services from horse-drawn carts to automobiles. Pepsi seemed to be becoming successful in such a short time. But there is still a problem. By the time Pepsi Cola came out, Coke had already made its mark among the public and the newcomer Pepsi found it hard to find a consumer base.
Pepsi has four main objectives:
A) Remain one of the top companies in terms of global production of soft drinks. Being on top of its industry enables Pepsi to command the respect and confidence of its clients. Thus, the company is able to expand its operations through the acquisition of other brewing firms.
B) Gain more profit per hectoliter than other international soft drink companies. The raw materials that are being laid down in the recipes used in Pepsi are able to meet high quality standards. As a result, the company is able to earn more profit as against other soft drink companies.
C) Build the best brand portfolio, with Pepsi as the international brand of flagship; and
D) Maintaining its independence. Being an independent company allows Pepsi to continue its tradition of excellence in both its products and services by setting new trends and standards.
Background of Australia
In Australia, it can be said that the country has a strong political system. Moreover, the economic status of the country is also considered as strong since it allows foreign investments to enter the market. Australia is considered to have the strongest economic status in their region. In 2005, it has been regarded to be the 4th largest in terms of exchange rates. In this regard, Pepsis entry to Australia is plausible and that with strategic marketing entry the company may ensure growth in this nation. In terms of technological aspects, the country has been able to adapt modern technologies to ensure growth and development within its territorial boundaries.
In terms of Demography, Australia has a population nearing more than 100 million people. This means, Australia will have greater opportunity to have many target markets that will avail its products. It is said that the dies of most Australians, except larger cities, largely depends on what is produced or given in such region. In terms of food expenditures,