Pepsi’s Advertising History

I chose Pepsi because I decided it would be interesting to see how the company started out and what kinds of marketing strategies they used that makes them into the huge success story they are today. Here’s what I’ve discovered and it is quite an impressive story: In 1898, in North Carolina, a pharmacist named Caleb Bradham began experimenting with juices and spices and syrups looking for something to quench the thirst of his customers on some of the hot humid days. Low and behold before it was all said and done, he had invented the drink we know today as Pepsi-cola. It wasn’t until 1903 that Pepsi was patented and Bradhams first ever advertizing sell went along with his pharmacist concoction, â€Å"Exhilarating, invigorating, and aides indigestion.? He initially mixed the soda himself and distributed it through his soda fountain and then decided to bottle it so people could drink it anywhere. By 1909, the Pepsi bottle logo had been changed 3 times, 15 bottling plants had opened up, the slogan became, â€Å"The Original Pure Food Drink† and Pepsi was trade marketed in Mexico and Canada. Also by that time Mr. Bradham had gotten himself some of the best advertisement available at the time. He had a celebrity endorser for a race car named Barney Oldfield. Barry appeared in news paper ads describing Pepsi-cola as â€Å"a bully drink – refreshing, invigorating, a fine bracer for a race. † In 1920 Pepsi’s new motto was â€Å"Drink Pepsi-cola. It will satisfy you. † But by 1923, Bradham wasn’t worried about his motto or slogan; he was worried about the rising cost of sugar. So worried in fact that after it hit 26 cents per pound, he stocked up on it tremendously afraid it would go even higher and then it fell to an all time low of 2 cents per pound. By 1923, Bradham was bankrupt and then Pepsi –cola was sold off to Craven Holdings Corporation for $30,000. It was then sold to Roy C. Mega gel for $35000 and he formed the Pepsi Cola Company. It took until 1934 for Pepsi to come up with the best marketing idea yet. It began selling its 12 ounce bottles of soda for only 5 cents – the same price as the competitor’s 6 ounce bottle. 1939 brought a whole new look at the value of Pepsi. A cartoon strip, â€Å"Pepsi and Pete† introduced the theme â€Å"Twice as much for a nickel â€Å"to reinforce the huge value advantage of the soda Pepsi. By 1940 Pepsi makes nationwide history because their jingle†Nickle, Nickel† was broadcast nationwide and became a hit record. It was translated into 55 different languages. In1941 Pepsi wanted to support Americas War Efforts so it changed its bottles to red, white and blue. There also opened up a Pepsi Canteen place in Times Square, New York that operated all year long and enables more than 1 million families to record messages for armed service personnel overseas. Eventually in 1950 Pepsi was forced to raise its 12 ounce bottle prices to a competitive level so their slogan became â€Å"More Bounce to the Ounce† and the logo was changed again. As Americans became more weight conscious, Pepsi decided they would be a prime opportunity as a target market. That’s when â€Å"The Light Refreshment â€Å"and â€Å"Refreshing without filling† slogans came in. Pepsi went after another new target market in 1958 when the company decided it didn’t just want to be known as â€Å"the kitchen cola† because of it being considered such a bargain brand. Pepsi started identifying itself with the young, fashionable consumers using the new â€Å"Be Social, Have a Pepsi† slogan. A swirl was then added to the straight necked bottle of the past. In 1961 Pepsi saw the opportunity to further define its target market by recognizing the importance of the younger post-war generation. â€Å"Now its Pepsi, for those who think Young† defines youth as a state of mind. 1963 brought about one of the most significant phenomenon’s in commercial history because the post-war baby boomers emerged on society and in the market place. Pepsi took advantage of that change and made Pepsi the brand of the new generation – the Pepsi generation. † â€Å"Come Alive! You’re the Pepsi Generation† makes advertizing history. This will be the first time a product is identified by its consumer’s lifestyles and attitudes instead of its attributes. In 1964, Diet Pepsi was introduced and by 1966 it had its own campaign, â€Å"Girl Watchers† that focused on the cosmetic benefits of the low-calorie cola. The music to this new item became a tip 40 hit. When research indicated that consumers place very high regard on Pepsi’s superior taste when chilled, â€Å"Taste that beats the others cold. Pepsi powers on† emphasized Pepsi’s product superiority. When in 1973 our nation was involved in massive social and political change, Pepsi came up with â€Å"Join the Pepsi People, Feelin’Free: campaign. One People, many personalities. After Patriotism was sectored in the U. S. with the celebration of the bicentennial, American people looked to the future with optimism. â€Å"Catch the Pepsi Spirit† is the mood the Pepsi Generation took forward with it in the 80’s. The soft drink war had grown more competitive but for Pepsi it had already been won. : Pepsi Now! † explained it all. Partway through the 1970’s Pepsi came up with a marketing strategy that would become an international landmark in advertizing – The Pepsi Challenge. Consumer test after consumer test confirmed that more people preferred Pepsi over Coca-cola. That reality was made into advertising and made marketing history as well as gained market share for Pepsi. Pepsi also became the largest selling soft drink in super markets by the time the 80’s got here. When 1984 came along, a new generation had emerged- in the United States, around the world and in Pepsi advertizing, too. To make this new generation happy, Pepsi began with a new campaign containing Michael Jackson, the most popular entertainer in the world at the time, starring in the company’s first 2 commercials. These two were the most eagerly awaited advertizing of all time. The fact that during rehearsal Michael Jackson’s hair was actually set on fire accidentally did not diminish Pepsi’s popularity at all. After this the company’s publicity went to $3 million in worth. Even after Geraldine Farroro’s Pepsi ad fueled debates about the ethics of politicians doing commercials, Pepsi seemed untouched. Emanuel Goldman, a beverage analyst at Montgomery Securities in San Francisco forecasted that the growth for all Pepsi’s soft drinks in 1985 may match that of Coco-cola USA products, Pepsi’s biggest rival. In 1985 the front runners in the soft drink business were Coke – Pepsi – 7-up – and Dr. Pepper. Coke changed its product make-up but swears it never meant to emulate Pepsi. -up announces people are concerned about caffeine and other artificial ingredients so its ads will stress â€Å"It never had it, it never will†. People just don’t want traditional sugar any more. Soon Pepsi introduced Slice containing 10% fruit juice, Coke unveiled Cherry Coke and was testing Minute Maid Orange Juice at the time. 7-Up started revving up its ads for TV, sports cable, and MTV. Charles Schmidt, executive vice president said, â€Å"I think the changes in consumer taste, preferences and movements to brands that don’t have preservatives and artificial colors is right down our alley. Pepsi did have one marketing mistake that certainly didn’t boost sales or improve popularity when it comes to an advertisement. In 1989, Madonna starred in an ad that depicted her as a young woman and also as a young girl, flashing back and forth between dance scenes either at the young girls birthday party where she’s seen blowing out her candles and making a wish or as a young adult dancing among joyful gospel singers to the music of Madonna singing â€Å"Like a Prayer†. Over 250 viewers tuned in to see this hyped up ad that was the first ever to be seen on T. V. before being released over the radio or other venue. The ad went wonderfully as planned. Unfortunetly all did not stop there. Madonna had a release by the same name on her new album. The video was a far cry from the wholesome picture the ad left you with. Instead it was about a white woman being raped by a black man and Madonna holding a knife till it shows her hands with cuts that seem to represent Stigmata or Cruxification. This video aired one day after the Pepsi ad. The first person to make noise was the reverend of a Christian group called American Family Association and he threatened to have his 380,000 AFA subscribers boycott Pepsi until they dropped Madonna. Pepsi put a hold on the ad to see if things would blow over. But then a Catholic Bishop from Texas chimed in agreement to the offensive video and he threatened to boycott not only Pepsi, but it’s other corporate holdings also, such as Taco Bell, Pizza Hut, and Kentucky Fried Chicken. But the worst was still coming. The Pope then released a statement by the Vatican banning Madonna from appearing in Italy at all. Pepsi decided it was best to end this and they dropped Madonna like a bad habit and the ad was never run again, although it can still be viewed on You Tube. Even though Madonna still owed Pepsi 3 commercials that were never going to happen, Pepsi Paid her the original $5 million payment. This controversy that jeopardized Pepsi only shot Madonna’s record sales up to 13 million copies worldwide. As the 1990’s grew near, consumers wanted to continue to broaden their choices in beverages so Pepsi took that opportunity to broaden its product line and become a total beverage company. Pepsi‘s products would now include water, tea, coffee drinks, juice, juice drinks and the original soft drinks. Pepsi was also the first to come up with the idea of freshness dating, providing customers an easy way to read product freshness code. The Diet Pepsi can first appeared with the â€Å"best if used by† date and then it quickly became standard on all of Pepsi’s other products. Pepsi – now known as PepsiCo, Inc. has now joined forces with companies such as Tropicana in 1988, Quaker Oats Company in 2001 and still recently, Gatorade. In Feb. of 2010, Pepsi and Anhauser- Busch have teamed up to buy advertising such as network cable, print, and outdoor media. Today PepsiCo is a $29 million company employing over 150,000 people who speak 40 different languages. As I’ve tried to point out with all of this information, Pepsi is an amazing company with great marketing strategies and mixes and knows a great opportunity when it sees one. You can go back through my information and see that Pepsi hits on all 4 P’s –Product(s),which are still growing as we speak, Price – for instance the 12 ounce bottles for only 5 cents approach, Placement-Caleb Bradham knew he needed to put his product out there on the market and not kept it his pharmacy in order for it to prosper and Promotion – I’ve given you many, many wonderful inventive examples of how Pepsi promoted very successfully their first product all the way now to their last.