Daniels Fund Ethics Initiative University of New Mexico http://danielsethics.mgt.unm.edu
PepsiCo’s Journey Toward an Ethical and Socially Responsible Culture
COMPANY OVERVIEW PepsiCo is one of the largest food and beverage companies in the world. It manufactures and sells eighteen brands of beverages and snack foods and generates over $98 billion in retail sales. PepsiCo encompasses the Pepsi Cola, Frito-Lay, Tropicana, Quaker, and Gatorade brands and offers products in over 200 countries. It currently holds 36 percent of the total snack food market share in the U.S. and 25 percent of the market share of the refreshment beverage industry. The company’s headquarters are in New York and employs over 200,000 people. In 2006, Michael D.
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During the 1950s, Pepsi evolved from the low cost price leader to a more lifestyle drink approach. For example, as Americans became more health conscious, Pepsi introduced slogans such as “The Light Refreshment” and “Refreshing Without Filling.” Other new advertising campaigns included slogans such as “Be Sociable, Have a Pepsi” and “Now Its Pepsi, For Those Who Think Young” to concentrate on a younger market. It was this younger target market and the post-war baby boom generation that set the stage for Pepsi’s long-lasting brand image. It all started with Pepsi advertiser Alan Pottasch, who recognized the different nature of the newest generation of consumers. Whereas consumers before the war were more cautious and price-conscious, the post-war baby boomer generation was carefree and hopeful. Pepsi once again capitalized on the changing environment, and under Pottasch launched the “Pepsi Generation” campaign in 1963. The campaign was an advertising breakthrough as it helped to set a new standard for advertising in America. The ads portrayed happy Americans living the American dream—with their Pepsis, of course. By associating its brand with youth and excitement, Pepsi-Cola became the forerunner of lifestyle marketing. Future campaigns continued to promote this brand image, with slogans such as “You’ve Got a Lot to Live. Pepsi’s Got a Lot to Give,”
In the reading Advertisements R Us, Melissa Rubin expands upon her analysis of Coca-Colas’ 1950 magazine advertisement, and brings many points to light about how the company uses cleverly crafted advertising tactics to appeal to a specific group of Americans. By clearly communicating her evidence to back up the analysis of the advertisement, Ruben composes a thoughtful and persuasive paper. For example, Rubin explains how simple details, such as the use of their slogan on the vending machine pictured which reads “Drink Coca-Cola - Work Refreshed”, and the placement of “Sprite Boy” in the ad, all work together to send a message that makes consumers want to buy their product. Consequently, because of the evidence presented in her writing, Rubin has crafted a paper that I find logical and persuasive.
PepsiCo, Inc. operates as a food and beverage company worldwide. Through its operations, authorized bottlers, contract manufacturers and other partners, the company makes, markets, sells, and distributes various foods and beverages, serving customers and consumers in approximately 200 countries and territories. The company also owns Frito-Lay company and Quaker Oats. It has bottling and distribution facilities in Asia, North
Coca-Cola’s confidence in its domination over the soft drink industry eroded, and its advertising slogans began to recognize industry competition: “No Wonder Coke Tastes the Best”. While Coke’s slogans have always centered on the product, Pepsi’s advertisement emphasized the users of the product. Rather than targeting every market, Pepsi focused on the demographic environment. Pepsi foresaw the mass appeal of the youth generation for soft drinks and in 1961 divulged the successful slogan “Now, It’s Pepsi, for Those Who Think Young”. The campaign was such a success that Pepsi’s sales growth outperformed that of Coca-Cola.
In her article “Advertisements R Us,” Melissa Rubin notes that Coke’s message in the ad she analyzes is that “Coke will refresh and unite working America” (249). Her evidence for this is based on several things—for instance, right in the middle of ad sits a large Coke machine and the bottom of the ad explicitly states, “A welcome host to workers—Inviting you to the pause that refreshes with ice-cold Coca-Cola” (249). She concludes her article with the insight that “Coke ads helped shape the American identity,” pointing to the underlying message of the ad that Coke can provide the carefree, joyful life it never fails to portray in its ads to everyone who takes a sip (250).
Instead of promoting the usual conformed replicated lifestyle they promoted individualism. Advertisers reassured consumers that they would surely find the self-expression they were in search of within their products. This is evident within the “Forever Young” Pepsi commercial where present advertisers are promoting individualism through the image of rock n roll legend, Bob Dylan. In his essay, Frank states, “We consume not to fit in, but to prove, on the surface at least, that we are rock ‘n’ roll rebels, each one of us as rule-breaking and hierarchy-defying as our heroes of the 60’s, who now pitch cars, shoes, and beer” (Frank 153). During the 1960’s Bob Dylan revolutionized what it meant to be an individual. Through his music many people started to express what they were feeling and how it was affecting them and rebelled against the pressures of society. Pepsi using Bob Dylan as the protagonist of the commercial symbolizes the desire for people to explore what it means to be a carefree rock ‘n’ roll legend that lives life on a spectrum outside of the guidelines that society already has set in place. Bob Dylan’s purpose in the Pepsi commercial is to directly represent rebellion and individualism. This advertisement pushes the concept that consumers too have the potential to be as inspiring as said legend if they continue to take apart in whatever is being sold. Pepsi’s commercial expresses that conformity is no longer
Bolman and Deals four frames of organizations (1997) provide a foundation to determine how an organization functions and examine how operating within a certain frame may benefit or adversely affect an organization. In analyzing PepsiCo as an organization through Bolman and Deal?s (1997) frames of organizations the key elements of the structural and human resource frames as well as a review the Strengths, Weaknesses, Opportunities, and Threats that may affect Pepsi Co as an organization will be addressed.
During the “Pepsi Challenge,” the person would prefer one product to the other. In the late 1990s, “Pepsi launched its most successful long-term strategy of the Cola Wars, Pepsi Stuff.” The Consumers were “invited” to “Drink Pepsi, Get Stuff” by using codes on cans and bottle caps to redeem points for free Pepsi lifestyle merchandise. The battle continues today “as they battle for brand supremacy…through advertisements, slogans, and celebrity endorsements.”
“Ladies, if you want to stay beautiful, slim and attractive drink Pepsi” this was from a commercial in the 1950s. In our modern, open minded culture we have seen or heard of the infamous commercials from Carl Jr. adding heat to the western chain Spicy BBQ Burger featuring a bump-and-grind car wash bad-girl Paris Hilton. Wearing a sexy black swimsuit, she seductively washes down a Bentley and herself, working up an appetite for a Spicy BBQ sandwich. This is exactly what the audience responds to, according to Carl Jr. Marketing a product in a traditional, fast-food, bite- and-smile way is a waste of
PepsiCo is a global food and beverage corporation based in United States. Company received its current name in 1965, through the merger of Pepsi-Cola with Frito Lay Inc. PepsiCo makes, markets, sells and distributes more than 40 brands. A range of worldwide famous brand names includes Pepsi, Mountain Dew, Lay’s, Doritos, Quaker, Tropicana, Tostitos, Walkers, Cheetos, Ruffles, Fritos and others. PepsiCo generated net revenues of more than USD 65 billion in 2013, where 35% of revenue from developing and emerging markets (PepsiCo Annual Report). Pepsi products are available in more than 200 countries. The company has its own bottling manufacture and distribution facilities. Pepsi-Cola Company division is the second largest carbonated soda business in the world and the Frito-Lay division is the world’s leader in snacks business. The Frito-Lay generates more than 65% of PepsiCo 's net sales and more than 2/3 of the PepsiCo operating
Pepsi –cola was started in the summer of 1898 in New Bern, North Carolina by Pharmacist Caleb Bradnham. PepsiCo Inc. started in 1965 with the merger of Pepsi-Cola and Frito-Lay. Since then, PepsiCo has continued to grow, adding new brands and product lines meeting the demands of the market. Throughout the years, they have strived and worked toward environmental sustainability. The ability to be financial stable gives PepsiCo the ability to give back and donate to those communities they are located in. PepsiCo’s mission to provide performance with purpose means delivering sustainable growth by investing in a healthier future for people and our planet. PepsiCo is continually increasing their triple bottom line.
What “grade” would you give Ms. Nooyi for her job performance as a strategic leader? What are her strengths and weaknesses? Where would you place Ms. Nooyi on the Level-5 pyramid of strategic leadership and why?
PepsiCo’s corporate strategy had diversified, in 2008, the company into salty and sweet snacks, soft drinks, orange juice, bottled water, and ready-to-eat drink teas and coffees, purified and functional waters, isotonic beverages, hot and ready-to-eat breakfast cereals, grain-based products, and breakfast condiments. Strategies that kept their brands at the top were tied to new product innovation, close relationships with distribution allies, international expansion, and strategic acquisitions. A new element of PepsiCo’s corporate strategy was product reformulations to make snack
Despite its relation to obesity and other health risk, soda still remains as a popular beverage in the United States, and upon other demographic groups. Amongst the lineup of refreshments, Pepsi and Coca-Cola are the most leading carbonated cola beverage brands around the world. Pepsi and Coca-Cola had been rivals when introduced respectively in the 1900s, trying to dominate the carbonated soft drink market. Through print ads and video ads, both brands were undergoing global advertising war trying to dominate each other. Between the two brands, Coca-Cola seem to be superior to Pepsi due to it’s creative advertisements that grabs consumer’s attention. Coca-Cola portrays rhetorical strategies within the advertisement to catch the audience’s attention by using ethos, pathos, and logos.
PepsiCo Inc. is an American multinational foods and beverage manufacturer. It is headquartered in Purchase, New York and operates in more than 200 countries around the Globe. It is one of the world's leading brands in the beverages and grain-based snack foods industry. It was incorporated in 1965 in North Carolina by Donald Kendall and Herman Lay. The main product offerings by PepsiCo Inc. include soft drinks, energy drinks, coffee drinks, breakfast bars, cereal, rice snacks, side dishes, sports nutrition, and bottled water. The most recognized brands of the company are Pepsi, Starbucks, Quaker, Lay's, Mountain Dew, Mirinda, Gatorade, Aquafina, Lipton, Frito-Lay, Brisk, Tropicana,
The Diet Pepsi print advertisement “Forever Young” is quite creative and thought provoking. The print advertisement shows the front of a businessman’s body, from his nose down to his midsection. This most likely belongs in a magazine, in a place such as a doctor’s office or barbershop, or whatever any day place that the average person would visit. He holds a “Diet Pepsi” cup in the center of the advertisement, with the intention of immediately bringing the cup attention to the reader. He blows bubbles through a straw into the beverage, overflowing the cup and making quite a mess. It is a serious, black and gray formal background. This is meant to be ironic, because a businessman does not typically partake in childish behaviors like in the picture, in such a serious, adult-like atmosphere. The main message this is trying to convey is non-conformity, through its ironic picture of a relatable businessman, and its “Forever Young” caption on the bottom right. “Forever Young” could also suggest that drinking Diet Pepsi can make one feel young and like a kid again and how humans have a basic necessity for having fun, which can be explained by blowing the bubbles in the drink.