Pepsico

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PepsiCo
Human Relations in Management
MAN 4101
Spring 2013
February 17, 2013


Abstract
From the time Pepsi merged with Frito Lay to form PepsiCo, the organization has grown. PepsiCo expanded their product portfolio to include something for all consumers. As a leader in the food and beverage industry and operating globally, PepsiCo has implemented a strong training background that develops employee’s managerial and leadership skills. The commitment of PepsiCo is Performance with Purpose, which is the pledge to deliver sustainable growth by investing in a healthier future for people and our planet (PepsiCo, Inc, 2012).  

History
After dropping out of medical school, Caleb Bradham opened Bradham Drug Company. It is during this time, Bradham developed Brad’s Drink. Brad’s Drink consisted of a blend of kola nuts, vanilla, rare oils, sugar and carbonated water. In 1898, he renamed the drink Pepsi-Cola and bought the trade name Pep Cola for $100. Out of the back of his pharmacy, in 1902, Bradham launched Pepsi-Cola Company. After years of rapid growth and success, in 1923, Pepsi-Cola went bankrupt and Bradham lost Pepsi-Cola to Craven Holding Corporation for $30,000. Shortly after, the Pepsi-Cola trademark was purchased by Roy C. Megargel. He was unable to save the company and Pepsi-Cola went bankrupt for the second time. Charles G. Guth, a candy manufacturer, president of Loft Incorporated, acquired Pepsi-Cola and after only two years the company was thriving earning the new owner $1 million. Adapting to the downward spiral of the economy, Guth decided to double bottle sizes to twelve ounces. He also developed the first ever jingle to advertise the product. Pepsi-Cola continued to grow making it larger than the candy side of Loft Incorporated and the decision was made to change the name to Pepsi-Cola Company. After years of success and international growth, Pepsi began to expand their brand introducing Diet Pepsi and Mountain Dew in 1964 and by 1965 had merged with Frito-Lay, Inc., to form PepsiCo, Inc. Now PepsiCo, they were able to expand their product line to include some other well-known brands of today. Some of these include Starbucks Frappuccino, Lipton Brisk, Aquafina, SoBe, Dole and Tropicana juices. PepsiCo merged with Quaker Oats, which included Gatorade, to offer beverages to all consumers and has become a leader in the food and beverage industry. Customers

Ranging in age, gender, income levels and race PepsiCo’s consumers have different needs. By understanding these needs, PepsiCo has been able to adjust their product portfolio to reach all consumers. Launching the first jingle ever, “Nickel, Nickel”, Pepsi targeted all Americans across the nation. This catchy jingle went global and was translated in 55 languages. During the WWII era, wanting to support the men and women overseas, Pepsi adopted red, white, and blue color scheme showing their patriotism. Attracting the families of these men and women overseas, Pepsi opened a USO Canteen where these families were able to record messages to send to those that were serving over the world.

After the introduction of several advertising campaigns, including “Sociables” which was the first campaign targeted to the younger people. Pepsi again embraced the change and by 1960, the first “Pepsi Generation” campaign was launched and is still incorporated in today’s advertising campaigns. After 65 years of selling solely Pepsi-Cola, the consumer’s dietary preferences were changing and Pepsi responded by introducing Diet Pepsi-Cola Through international growth, where products are developed to meet local taste and needs, and the merger between Frito Lay, Inc, the top salty snack industry, and Pepsi-Cola, forming PepsiCo, the company expanded their target market. By the 90’s, Pepsi realized the growing concern of obesity, staying ahead of the industry, they began changing their products to adapt to the changes in consumer preferences....
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