Pepsi Rise to Success

Topics: Coca-Cola, PepsiCo, African American Pages: 2 (666 words) Published: March 6, 2013
Pepsi BY: Saba Zarif

Thousands of people love the irresistible taste of Pepsi and because of that it is one of the most famous carbonated soft drinks to this day. The PepsiCo started off their glorious franchise from the Pepsi soft drink in 1893 by Caleb Bradham, who made it in his drug store where the drink was sold. In 1931, at the depth of the Great Depression, the Pepsi-Cola Company entered bankruptcy, due to financial losses acquired by speculating on wildly fluctuating sugar prices as a result of World War I. After the horrible bankruptcy, the Pepsi-Cola Company went for sale, and so Roy C. Megargel bought the Pepsi trademark. Megargel was unsuccessful, and soon Pepsi’s assets were purchased by Charles Guth, the President of Loft Inc. The Loft Candy Company was a candy manufacturer with retail stores that contained soda fountains. On three separate occasions between 1922 and 1933, the Coca-Cola Company was offered the opportunity to purchase the Pepsi-Cola Company and they decline on each occasion. It took time for the company to actually bloom to popularity. During the Great Depression, Pepsi finally gained popularity following the introduction in 1936 of a 12 ounce bottle. They got their 12 ounce bottle ad out in an interesting style. The Pepsi-Cola Company used a radio advertising campaign featuring a jingle to get the word out. The jingle is arranged in such a way that the jingle never ends. Pepsi encouraged the price-watching consumers to switch, obliquely referring to the Coca-Cola standard 6.5 ounces per bottle for the price of a nickel, instead of the 12 ounce Pepsi sold at the same price. Coming into a time of economic crisis, the campaign succeeded in boosting Pepsi’s status, and because of that, the Pepsi-Cola Company doubled in profits. Pepsi’s success under Charles Guth came while the Loft Candy business was faltering. Since he had initially used Loft’s finances and facilities to establish the new Pepsi...
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