PEPSI: THE SECRET OF THE SILENT RIVALRY THAT SHAPED THE BRAND

The Origins of Pepsi: A Humble Beginning and a Big Dream The story of Pepsi begins in a small pharmacy laboratory in the late 19th century. Like Coca-Cola, Pepsi began as a medicinal tonic. The brand's creator, Caleb Bradham, was a pharmacist from North Carolina who dreamed of developing a refreshing drink that would benefit digestion. What he could not have foreseen was that his experiment would become one of the most iconic brands in the world, leading to a rivalry that would span generations. The Historical Context and Emergence of Pepsi-Cola In the late 19th century, the United States was undergoing an industrial transformation. Great inventions were shaping everyday life, and the beverage industry was no exception. Soda was beginning to become popular, driven by a growing interest in carbonated beverages. Caleb Bradham, noticing this trend, developed a special formula in 1893, calling it "Brad's Drink". The drink combined sugar, water, caramel, lemon oil, nutmeg and other natural ingredients. The public's acceptance was so positive that, in 1898, Bradham renamed his invention "Pepsi-Cola", a name that referred to two of its main attractions: pepsin, a digestive enzyme, and cola, derived from the kola nut. The promise was simple but powerful: a tasty drink that aided digestion and provided energy. First Steps and Initial Expansion Bradham began bottling and selling his beverage locally, and it grew rapidly. Within a few years, Pepsi-Cola was being distributed to cities across the United States. The pharmacist had bigger ambitions, and in 1902 he founded the Pepsi-Cola Company. The company invested heavily in advertising, using eye-catching posters and persuasive slogans. One of its first slogans was "Delicious and Invigorating," a concept that spoke directly to consumers at the time. In addition, Pepsi was sold in pharmacies, an environment that gave credibility to the promise of health benefits. First Crisis: Bankruptcy and Restructuring The initial success, however, did not guarantee a smooth road ahead. In 1923, the Pepsi-Cola Company filed for bankruptcy due to volatile sugar prices during World War I. Bradham, lacking the resources to sustain the company, lost control of the business. The brand was acquired by investors and went through various managements throughout the 1920s and early 1930s. The big turning point came in 1933, when the company was purchased by Charles Guth, an entrepreneur who saw potential in Pepsi. Under his leadership, the brand underwent a strategic overhaul. One of the most significant changes was the introduction of a new 12-ounce (355 ml) bottle at the same price as competitors were charging for a 6.5-ounce bottle. This move was crucial in attracting consumers during the Great Depression, a time when Americans were looking for more value for their money. Practical Example: The Double for the Same Price Strategy Imagine you are in a supermarket and have to choose between two brands of juice. One of them offers a 500 ml bottle for R$5, while the other sells a 1 liter bottle for the same price. If the quality is similar, which one would you choose? Most consumers would opt for the second option, as it seems like a better deal. This was Pepsi's logic in the 1930s. By introducing a 12-ounce bottle at the same price as its competitors, consumers began to see Pepsi as the best value for money. This strategy not only saved the company from bankruptcy, but also put the brand on the path to directly rivaling Coca- Cola. Continued...

© 2025 Max Editorial (Ebook): 9781779749246

Release date

Ebook: 15 April 2025