ACKNOWLEDGEMENT

I would like to take this opportunity to thank

University Of Mumbai for having projects as a part of the

B.M.S.

Many people have influenced the shape and content of

project and many supported me through it. My successful

completion of this project involved more than just my desire

to learn the value of completing the project.

I would personally like to thank and express my sincere

gratitude to Mrs. Poonam Mam for assigning me a project

on Leadership which is interesting and exhaustive subject.

Without their help the project seemed difficult to complete.

Certificate I Mrs. Poonam Mam hereby certify that student studying

in

class: F.Y BMS Div: A

Roll no Name Signature

22 DANISH KHAN

Academic year 2007-2008 at Rizvi College of Arts, Science

& Commerce has completed project entitled PEPSI under

our guidance.

To the best of my knowledge information submitted in the

project is original and authentic.

Signature: Signature:

(Project co-coordinator) (BMS co-coordinator)

Declaration

I the students of class: F.Y BMS Div: A

Roll no Name Signature

Academic year 2007-2008 studying at Rizvi College of

Arts, Science & Commerce

Here by declare that the work done on the project entitled PEPSI true and original and any reference used in the project is duly acknowledged.

Index

SR.NO: CHAPTERS 1. Introduction 2. Origin 3. Rise in popularity 4. Marketing

Introduction

4.1 Celebrity endorsers 4.2 Slogans 4.3 Pepsiman

5. Competition 6. Rivalary with coke 7. Bans in India 8. Soft drinks market in India 9. Economic implication 10. More about Pepsico.

Pepsi-Cola is a carbonated beverage that is produced and

manufactured by PepsiCo. It is sold in

stores, restaurants and from vending

machines. The drink was first made in

the 1890s by pharmacist Caleb

Bradham in New Bern, North Carolina.

The brand was trademarked on June 16,

1903. There have been many Pepsi

variants produced over the years since

1903, including Diet Pepsi, Crystal

Pepsi, Pepsi Twist, Pepsi Max, Pepsi

Samba, Pepsi Blue, Pepsi Gold, Pepsi

Holiday Spice, Pepsi Jazz, Pepsi X

(available in Finland and Brazil), Pepsi

Next (available in Japan and South Korea), Pepsi Raw, Pepsi

Retro in Mexico, Pepsi One, Pepsi Ice Cucumber and Pepsi White

in Japan.

In October 2008, Pepsi announced they would be redesigning their

logo and re-branding many of their products by early 2009. In

2009, Pepsi, Diet Pepsi and Pepsi Max will use all lower-case

fonts for name brands, Mountain Dew will be renamed "Mtn

Dew", and Diet Pepsi Max will be re-branded as Pepsi Max. By

the end of 2008, the brand's blue and red globe trademark will

become a series of "smiles," with the central white band arcing at

different angles depending on the product. The new imagery is

slated to be used when 2008 is over. In the case of Pepsi, the logo

will have the medium-sized "smile", while the new lower-case font

used on Pepsi's products are to be reminiscent of the font used in

Diet Pepsi's logo from 1964-1988.

Origins

Pepsi was first made in New Bern, North Carolina, in the United

States in the early 1890s by pharmacist Caleb Bradham. In 1898,

"Brad's Drink" was changed to "Pepsi-Cola" and later trademarked

on June 16, 1903.There are several theories on the origin of the

word "pepsi". The only two discussed within the current PepsiCo

website are the following:

1. Jonathan Vantman bought the name "Pep Kola" from a local

competitor and changed it to Pepsi-Cola.

2. The word Pepsi comes from the Greek word "pepse" (πέψη),

which is a medical term, describing digestion and the food

dissolving process within one's stomach. Dyspepsia is also a

medical term describes a problem with one's stomach to dissolve

foods properly.

Another theory regarding the name's origins is that Caleb Bradham

and his customers simply thought the name sounded good and

reflected the fact that the drink had some kind of "pep" in it

because it was a carbonated drink.

And another theory is that the word Pepsi was chosen because it

reflected phonetically the sound of a can being opened, the sound

"Pop" "Schi", was condensed and simplified in the name "Pepsi".

In 1903, Bradham moved the bottling of Pepsi-Cola from his

drugstore into a rented warehouse. That year, Bradham sold 7,968

gallons of syrup. The next year, Pepsi was sold in six-ounce

bottles, and sales increased to 19,848 gallons. In 1924, Pepsi

received its first logo redesign since the original design of 1905. In

1926, the logo was changed again. In 1929, automobile race

pioneer Barney Oldfield endorsed Pepsi-Cola in newspaper ads as

"A bully drink...refreshing, invigorating, a fine bracer before a

race".

In 1931, the Pepsi-Cola Company went bankrupt during the Great

Depression- in large part due to financial losses incurred by

speculating on wildly fluctuating sugar prices as a result of World

War I. Assets were sold and Roy C. Megargel bought the Pepsi

trademark. Eight years later, the company went bankrupt again.

Pepsi's assets were then purchased by Charles Guth, the President

of Loft Inc. Loft was a candy manufacturer with retail stores

that contained soda fountains. He sought to replace Coca-Cola at

his stores' fountains after Coke refused to give him a discount on

syrup. Guth then had Loft's chemists reformulate the Pepsi-Cola

syrup formula.

Rise in popularity

During the Great Depression, Pepsi gained popularity following

the introduction in 1936 of a 12-ounce bottle. Initially priced at

10 cents, sales were slow, but when the price was slashed to five

cents, sales increased substantially. With a radio advertising

campaign featuring the jingle "Pepsi cola hits the spot / Twelve

full ounces, that's a lot / Twice as much for a nickel, too / Pepsi-

Cola is the drink for you," Pepsi encouraged price-watching

consumers to switch, obliquely referring to the Coca-Cola standard

of six ounces a bottle for the price of five cents (a nickel), instead

of the 12 ounces Pepsi sold at the same price. Coming at a time of

economic crisis, the campaign succeeded in boosting Pepsi's status.

In 1936 alone 500,000,000 bottles of Pepsi were consumed. From

1936 to 1938, Pepsi-Cola's profits doubled.

Pepsi's success under Guth came while the Loft Candy business

was faltering. Since he had initially used Loft's finances and

facilities to establish the new Pepsi success, the near-bankrupt

Loft Company sued Guth for possession of the Pepsi-Cola

company. A long legal battle, Guth v. Loft, then ensued, with the

case reaching the Delaware Supreme Court and ultimately ending

in a loss for Guth.

Niche marketing

Walter Mack was named the new President of Pepsi-Cola and

guided the company through the 1940s. Mack, who supported

progressive causes, noticed that the company's strategy of using

advertising for a general audience either ignored African

Americans or used ethnic stereotypes in portraying blacks. He

realized African Americans were an untapped niche market and

that Pepsi stood to gain market share by

targeting its advertising directly towards

them. To this end, he hired Hennan Smith, an

advertising executive "from the Negro

newspaper field" to lead an all-black sales

team, which had to be cut due to the onset of

World War II. In 1947, Mack resumed his

efforts, hiring Edward F. Boyd to lead a

twelve-man team. They came up with advertising portraying black

Americans in a positive light, such as one with a smiling mother

holding a six pack of Pepsi while her son (a young Ron Brown,

who grew up to be Secretary of Commerce) reaches up for one.

Another ad campaign, titled "Leaders in Their Fields", profiled

twenty prominent African Americans such as Nobel Peace Prize

winner Ralph Bunche and photographer Gordon Parks.

Boyd also led a sales team composed entirely of blacks around the

country to promote Pepsi. Racial segregation and Jim Crow laws

were still in place throughout much of the U.S., so Boyd's team

faced a great deal of discrimination as a result, from insults by

Pepsi co-workers to threats by Ku Klux Klan. On the other hand,

they were able to use racism as a selling point, attacking Coke's

reluctance to hire blacks and support by the chairman of Coke to

segregationist Governor of Georgia Herman Talmadge. As a result,

Pepsi's market share as compared to Coke's shot up dramatically.

After the sales team visited Chicago, Pepsi's share in the city

overtook that of Coke for the first time.

This focus on the black market caused some consternation within

the company and among its affiliates. They did not want to seem

focused on black customers for fear white customers would be

pushed away. In a meeting at the Waldorf-Astoria Hotel, Mack

tried to assuage the 500 bottlers in attendance by pandering to

them, saying, "We don't want it to become known as a nigger

drink." After Mack left the company in 1950, support for the

black sales team faded and it was cut.

Marketing

In 1975, Pepsi introduced the Pepsi Challenge marketing campaign where PepsiCo set up a blind tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste tests the majority of participants picked Pepsi as the better tasting of the two soft drinks. PepsiCo took great advantage of the campaign with television commercials reporting the test results to the public.

In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy. By 2002, the strategy was cited by Promo Magazine as one of 16 "Ageless Wonders" that "helped redefine promotion marketing."

In 2007, PepsiCo redesigned their cans for the fourteenth time, and for the first time, included more than thirty different backgrounds on each can, introducing a new background every three weeks.One of their background designs includes a string of repetitive numbers 73774. This is a numerical expression of the word "Pepsi."

Celebrity endorsers: Like Coca-Cola, Pepsi and its associated beverages have had

various celebrity endorsers and continue to use them.

List of Pepsi spokespersons: Pepsi, the carbonated beverage, has had many advertising

spokespersons over the years. PepsiCo's other drink brands,

including Mountain Dew and Gatorade, also have a variety of

famous spokespersons.

History:

Celebrities have been paid to advertise for Pepsi products.

United States

NASCAR driver Jeff Gordon who runs a Pepsi paint scheme at

Talladega Superspeedway and Auto Club Speedway.

Joan Crawford was married to PepsiCo president Alfred Steele,

and was advertising executive and board of directors member for

several years.

During the 1960s, Joanie Sommers sang two popular commercial

songs ("It's Pepsi, for those who think young" and "Now you see it,

now you don't, oh, Diet Pepsi") for Pepsi-Cola that were run in

commercials and for which she came to be often referred to as "The

Pepsi Girl".

During the 1989 Grammy Awards telecast, Pepsi and Puerto

Rican singer Chayanne was featured in the first advertising spot

in Spanish language to be broadcast on national television

without dubbing or subtitles.

In the early 1990s, Ray Charles was the star of a Diet Pepsi

campaign called "You Got the Right One, Baby," which was also

known as "Uh-huh."

In 1999, Britney Spears became a spokesperson for Pepsi. Spears'

contract concluded with an advertisement with P!nk, Beyoncé and

Enrique Iglesias. The ad was made featuring the cover of the song

"We Will Rock You" by "Queen".

In 2005, Christina Aguilera was signed to promote the popular

drink (she was previously promoting Coca-Cola in 2000). The

campaign featuring Aguilera was released in 2006, but not in the

United States. Some commercials featured singer Elissa, and some

with Aguilera by herself. PepsiCo said in a recent interview that

Christina Aguilera has that 'dare for more' approach. Aretha

Franklin was also a spokesperson in 1998. And also in 1999 Janet

Jackson signed on to the original "Ask For More" campaign which

featured a song of the same name written and sung by Jackson.

In 2008, PepsiCo launched the "Cool Tones" campaign. It involved

Mariah Carey, Mary J Blige and The All American Rejects writing

and performing ringtones that can be obtained by purchasing a

Pepsi bottle. Carey also recorded a commercial for the campaign in

which she performs one of her original ringtones.

Europe and the United Kingdom

For the 1988 and 1989 seasons, Pepsi was the title sponsor of

Suzuki's effort in motorcycle road racing's premier class, Grand

Prix 500cc. The Pepsi livery was a new addition to grand prix

motorcycling, and a change from tobacco sponsors.

During 1988-9, Suzuki also produced a number of road going

replicas of the GP bikes, emblazoned with the same Pepsi signage

as the works bikes. Due to the livery's association with one of

Suzuki's riders, the Texan, Kevin Schwantz, riders today are still

producing their own replicas as tribute.

Asia

As for Asia, celebrity and

singers Leslie Cheung, Jay

Chou, Aaron Kwok, Jolin Tsai,

Rain, Louis Koo, Nicholas Tse,

F4, Faye Wong, and Kelly

Chan have appeared in several

different advertisements. In

India, Pepsi first used Aamir

Khan, model turned actress Mahima Chaudhary and model and

ex-Miss World Aishwariya Rai to promote its product.

Later it used Amitabh Bachchan, Shahrukh Khan, Kajol,Rani

Mukherjee, Saif Ali Khan, Fardeen Khan, Akshay Kumar, Shahid

Kapur (before he entered the movie world), Preity Zinta,John

Abraham, Priyanka Chopra, and Kareena Kapoor as well as the

national cricket team.

Troubled endorsers

Pepsi has had a notorious association with spokespersons,

primarily popstars, over the last 25 years. The first international

popstar to become a spokesperson for the drink was Michael

Jackson, who along with his brothers (The Jackson 5) advertised

Pepsi for "the new generation" in an advertisement featuring a

reworking of his song "Billie Jean". However, when filming a

second advertisement in 1984, a pyrotechnics stunt went wrong

and badly burnt Jackson.

In 1987, David Bowie and Tina Turner joined forces to advertise

the soft drink, in an advertisement featuring a reworking of

Bowie's hit "Modern Love." The company also agreed to sponsor

Bowie's 1987 Glass Spider World Tour. Bowie was accused of

sexual assault shortly afterwards, and the company dropped the

advertisements immediately. A year later Pepsi's attempts to make

Madonna a new Pepsi spokesperson ended with the infamous

"Like a Prayer" incident when Madonna's video brought charges of

anti-Catholicism to the company.

According to allhiphop.com, in 2005, a rumor spread that the newest spokesperson for Pepsi, Kanye West, was dropped after a comment made against President George W. Bush. Nicole Bradley, public relations manager of Pepsi, clarified that the company's relationship with West had not changed and their marketing will continue as planned

Slogans A large advertisement made to resemble a Pepsi cup at

Nickelodeon Universe in the Mall of America.

1939: "Twice as Much for a Nickel" 1950: "More Bounce to the Ounce" 1950: "Any Weather is Pepsi Weather" 1957: "The Light Refreshment" 1958: "Be Sociable, Have a Pepsi" 1961: "Now It's Pepsi for Those Who Think

Young" 1963: "Come Alive, You're in the Pepsi

Generation". 1967: "(Taste that beats the others cold) Pepsi

Pours It On". 1969: "You've Got a Lot to Live, and Pepsi's

Got a Lot to Give" 1975: "Have a Pepsi Day" 1977: "Join the Pepsi People (Feeling Free)" 1980: "Catch That Pepsi Spirit" David Lucas composer 1981: "Pepsi's got your taste for life" 1983: "Pepsi Now! Take the Challenge!" 1984: "Pepsi. The Choice of a New Generation" (Commercial

with Michael Jackson, featuring Pepsi version of Billie Jean) 1986: "We've Got The Taste" (Commercial with Tina Turner)

1990: "You got the right one Baby UH HUH" ( sung by Ray Charles for Diet Pepsi )

1991: "Gotta Have It"/"Chill Out" 1992: "Be YoungER, Have Fun, Drink Pepsi" 1993: "Right Now"Van Halen Song for the Crystal Pepsi Ad 1994: "Double Dutch Bus" Pepsi song sung by Brad Bentz. 1995: "Nothing Else is a Pepsi" 1996: "Pepsi:There's nothing official about it" (During the

Wills World Cup(Cricket) held in India/Pakistan/Sri Lanka) 1997: "GeneratioNext"." With the Spice Girls " 1998: "Yeh Dil Mange More"(In Hindi/Urdu meaning "This

heart wants more")(India/Pakistan)(100th anniversary commercial)

1999: "For Those Who Think Young"/"The Joy of Pepsi-Cola" (Commercial with Britney Spears/Commercial with Mary J. Blige)

2000: "Aazadi dil ki" (In Hindi meaning "Freedom of the Heart")(India)

2003: "It's the Cola"/"Dare for More" (Pepsi Commercial) 2003: "Yeh Pyas Hai Badi"(In Hindi meaning "This thirst is

too much")(India) 2005: "Wild Thing"/"Ask For More" (With Jennifer Lopez &

Beyoncé Knowles) 2006: "Why You Doggin' Me"/"Taste the one that's forever

young" Commercial featuring Mary J. Blige 2007: "More Happy"/"Taste the once that's forever young"

(Michael Alexander) 2008: "Yeh hai Youngistaan Meri Jaan!" (India)

2008: "Pepsi Stuff" Super Bowl Commercial (Justin Timberlake)

2008: "Рepsi is #1" Тv commercial (Luke Rosin) 2008: "Pepsify karo gai!" Commercial ( in Urdu meaning

"Wanna Pepsify!") (Pakistan) (Featuring. Adnan Sami and Annie (Pakistani singer))

2008: "Something for Everyone." (Current slogan)

Pepsiman

Pepsiman is an official Pepsi mascot from Pepsi's Japanese corporate branch. The design of the Pepsiman character is attributed to Canadian comic book artist Travis Charest, created sometime around the mid 1990s. Pepsiman took on three different outfits, each one representing the current style of the Pepsi can in distribution. Twelve commercials were created featuring the Pepsiman. His role in the advertisements is to appear with Pepsi to thirsty people or people craving soda. Pepsiman happens to appear at just the right time with the product. After delivering the beverage, sometimes Pepsiman would encounter a difficult and action oriented situation which would result in injury.

Pepsiman was featured as a Japanese Exclusive Transformers toy "Pepsi Convoy," which was based on G1 Optimus Prime. In 1996, Sega-AM2 released the Sega Saturn version of their arcade fighting game Fighting Vipers. In this game Pepsiman was included as a special character, with his specialty listed as being

the ability to "quench one's thirst". He does not appear in any other version or sequel. In 1999, KID developed a video game for the PlayStation entitled Pepsiman. As Pepsiman, the player runs, skateboards, rolls, and stumbles through various areas, avoiding dangers and collecting cans of Pepsi all while trying to reach a thirsty person as in the commercials.

Competition

Pepsi and Coca-Cola had/have different brands of soda

and other drinks competing with each other:

Type Pepsi version Coke version

Dark

Cola Pepsi-Cola Coca-Cola

Diet /

Low

calorie

Diet Pepsi /

Pepsi Light

Pepsi ONE

Pepsi Max

Diet Coke /

Coca-Cola

Light

Tab

Coca-Cola

Zero

Low

Carb

Pepsi Edge

(discontinued) Coca-Cola C2

(discontinued

in USA)

Clear

Cola

Crystal Pepsi

(discontinued)

Tab Clear

(discontinued)

Lemon

Lime

Soda

Sierra Mist

7 Up [1] Sprite

Cherry

Soda

Wild Cherry

Pepsi Cherry Coke

Orange

Soda

Tropicana

Twister

Slice

Mirinda

Sunkist

Kas

Fanta

Minute Maid

Orange

juice Tropicana Minute Maid

Iced Tea Lipton Brisk Nestea

(manufactured

by Nestle in

the USA and

by Beverage

Partners

Worldwide

(BPW), a joint

venture

between

Nestle and

Coca-Cola

elsewhere)

Water

Aquafina

Dasani

Bonaqua

Kinley

Ciel

Eva

Root

Beer

Mug Root

Beer Barq's

Sports

Drink

Gatorade

Propel Powerade

Citrus Mountain Mello Yello

Soda Dew

Mountain

Dew MDX

Kas

Vault

Fresca

Surge

(discontinued)

Rondo

(discontinued)

Vanilla-

Flavored Pepsi Vanilla Vanilla Coke

Lime-

Flavored Pepsi Lime

Coca-Cola

with Lime

Diet Coke

with Lime

Lemon-

Flavored Pepsi Twist

Coca-Cola

with Lemon

(discontinued)

Rivalry with Coca-Cola

According to Consumer Reports, in the 1970s, the rivalry continued to heat up the market. Pepsi conducted blind taste tests in stores, in what was called the "Pepsi challenge". These tests suggested that more consumers preferred the taste of Pepsi (which is believed to have more lemon oil, less orange oil, and uses vanillin rather than vanilla) to Coke. The sales of Pepsi started to climb, and Pepsi kicked off the "Challenge" across the nation. This became known as the "Cola Wars"

In 1985, The Coca-Cola Company, amid much publicity, changed its formula. The theory has been advanced that New Coke, as the reformulated drink came to be known, was invented specifically in response to the Pepsi Challenge. However, a consumer backlash led to Coca-Cola quickly introducing a modified version of the original

formula (removing the expensive Haitian lime oil and changing the sweetener to corn syrup) as Coke "Classic".

In the U.S., Pepsi's total market share was about 31.7 percent in 2004, while Coke's was about 43.1 percent.

Overall, Coca-Cola continues to outsell Pepsi in almost all areas of the world. Saudi Arabia, Pakistan (Pepsi has been a dominant sponsor of the Pakistan cricket team since the 1990s), Dominican Republic, the Canadian provinces of Quebec and Prince Edward Island and the U.S. states of Michigan and South Carolina are the exceptions..

Pepsi had long been the drink of Canadian Francophones and it continues to hold its dominance by relying on local Québécois celebrities (especially Claude Meunier, of La Petite Vie fame) to sell its product. PepsiCo use the slogan "here, it's Pepsi" (Ici, c'est Pepsi) to answer to Coca-cola publicity "Everyone on Earth drank Coca-Cola" (Partout dans le monde, c'est Coke).

By most accounts, Coca-Cola was India's leading soft drink until 1977 when it left India after a new government ordered The Coca-Cola Company to turn over its secret formula for Coke and dilute its stake in its Indian unit as required by the Foreign Exchange Regulation Act (FERA). In 1988, PepsiCo gained entry to India by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991 when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. In 1993, The

Coca-Cola Company returned in pursuance of India's Liberalization policy. In 2005, The Coca-Cola Company and PepsiCo together held 95% market share of soft-drink sales in India. Coca-Cola India's market share was 52.5%.

In Russia, Pepsi initially had a larger market share than Coke but it was undercut once the Cold War ended. In 1972, Pepsico company struck a barter agreement with the then government of the Soviet Union, in which Pepsico was granted exportation and Western marketing rights to Stolichnaya vodka in exchange for importation and Soviet marketing of Pepsi-Cola. This exchange led to Pepsi-Cola being the first foreign product sanctioned for sale in the U.S.S.R..

Reminiscent of the way that Coca-Cola became a cultural icon and its global spread spawned words like "coca colonization", Pepsi-Cola and its relation to the Soviet system turned it into an icon. In the early 1990s, the term "Pepsi-stroika" began appearing as a pun on "perestroika", the reform policy of the Soviet Union under Mikhail Gorbachev. Critics viewed the policy as a lot of fizz without substance and as an attempt to usher in Western products in deals there with the old elites. Pepsi, as one of the first American products in the Soviet Union, became a symbol of that relationship and the Soviet policy. This was reflected in Russian author Victor Pelevin's book "Generation P".

In 1989, Billy Joel mentions the rivalry between the two companies in the song We Didn't Start The Fire. The line "Rock & Roller Cola Wars" refers to Pepsi and Coke's usage of various musicians in their advertising campaigns. Coke used Paula

Abdul,while Pepsi used Michael Jackson. They then continued to try to get other musicians to advertise their beverages. Whilst filming the Pepsi advert Michael Jackson managed to burn his hair.

In 1992, following the Soviet collapse, Coca-Cola was introduced to the Russian market. As it came to be associated with the new system, and Pepsi to the old, Coca-Cola rapidly captured a significant market share that might otherwise have required years to achieve. By July 2005, Coca-Cola enjoyed a market share of 19.4 percent, followed by Pepsi with 13 percent.

Rarely, though, has the Coke-Pepsi rivalry gone so far as in Thailand, where it has now led to two deaths (source: Time Magazine).

Cola Wars The Cola Wars (a play on Cold War) was a campaign of mutually-

targeted television advertisements and marketing campaigns in the

1980s and 1990s between soft drink manufacturers The Coca-Cola

Company and PepsiCo.

Marketing campaigns:

Coca-Cola and Pepsi focused particularly on rock stars; notable

soft drink promoters included Michael Jackson and Ray Charles

(for Pepsi) and Paula Abdul, Elton John (for Diet Coke).

Coca-Cola:

One example of a heated exchange that occurred during the Cola

Wars was Coca-Cola making a strategic retreat on July 11, 1985,

by announcing its plans to bring back the original 'Classic' Coke

after recently introducing New Coke.

Pepsi:

Pepsi ads often focused on celebrities, choosing Pepsi over Coke, supporting Pepsi's positioning as "The Choice of a New Generation." In 1975, Pepsi began showing people doing blind taste tests called Pepsi Challenge in which they preferred one product over the other, and then they began hiring more and more popular spokespersons to promote their products.

In the late-1990s, Pepsi launched its most successful long-term strategy of the Cola Wars, Pepsi Stuff. Consumers were invited to "Drink Pepsi, Get Stuff" and collect Pepsi Points on billions of packages and cups. They could redeem the points for free Pepsi lifestyle merchandise. After researching and testing the program for over two years to ensure that it resonated with consumers, Pepsi launched Pepsi Stuff, which was an instant success. Tens of millions of consumers participated. Pepsi outperformed Coke during the summer of the Atlanta Olympics - held in Coke's hometown - where Coke was a lead sponsor of the Games. Due to its success, the program was expanded to include Mountain Dew, and into Pepsi's international markets worldwide. The company continued to run the program for many years, continually innovating with new features each year.[2]

The Pepsi Stuff promotion became the subject of a lawsuit. In one of the many commercials, Pepsi showed a young man in the cockpit of a Harrier Jump Jet. Below ran the caption "Harrier Jet: 7 million Pepsi Points." There was a mechanism for buying additional Pepsi Points to complete a Pepsi Stuff order. John Leonard, of Seattle, Washington, sent in a Pepsi Stuff request with the maximum amount of points and a check for over $700,000US to make up for the extra points he needed. Pepsi did not accept the request and Leonard filed suit. The judgment was that a reasonable person viewing the commercial would realize that Pepsi was not, in fact, offering a Harrier Jet. In response to the suit, Pepsi added the words "Just Kidding" under the portion of the commercial featuring the jet as well as changing the "price" to 700 million Pepsi points (see Leonard v. Pepsico, Inc.).

In 1985, Coca-Cola and Pepsi were launched into space aboard the Space Shuttle on STS-51-F. The companies had designed special cans for use in zero G conditions. The experiment was classified a failure by the shuttle crew, primarily due to the lack of

refrigeration and gravity.

Second Cola War

During the 1990s, a "second cola war" was reported in the United

Kingdom. This time it was due to the launch of Virgin Cola, as

well as Sainsbury's store brand Classic Cola, which, unlike most

store brand colas, was designed to look like a top product worthy

of competition. For a few years both colas were competitive with

Coca-Cola and Pepsi; at one point Coca-Cola even sued Sainsbury's

claiming the design of the Classic Cola can was too similar to

Coke's. However, today, both Virgin and Classic Cola are far

behind the two major brands. The high-publicity marketing also

continued into the 1990s. In 1997 the Spice Girls (who were at

the peak of their fame) signed a multi-million pound sponsorship

deal with Pepsi. They starred in three Pepsi commercials, released

two limited edition singles with Pepsi; "Move Over" and "Step To

Me", featured on Pepsi packaging and performed two live concerts

in Istanbul organised and sponsored by the company.

Bans in India

Pepsi arrived on the market in India in 1988. In 2003 and again

in 2006, the Centre for Science and Environment (CSE), a non-

governmental organization in New Delhi, claimed that soda

drinks produced by manufacturers in India, including both Pepsi

and Coca-Cola, had dangerously high levels of pesticides in their

drinks. Both PepsiCo and The Coca-Cola Company maintain that

their drinks are safe for consumption and have published

newspaper advertisements that say pesticide levels in their

products are less than those in other foods such as tea, fruit and

dairy products. In the Indian state of Kerala, sale and production

of Pepsi-Cola, along with other soft drinks, were banned in 2006[

following partial bans on the drinks in schools, colleges and

hospitals in five other Indian states.[ On September 22, 2006, the

High Court in Kerala overturned the Kerala ban ruling that only

the central government can ban food products.

Criticisms

PepsiCo in India

PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. Others claim that firstly Pepsi was banned from import in India, in 1970, for having refused to release the list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards. These controversies are a reminder of "India's sometimes acrimonious relationship with huge multinational companies." Indeed, some argue that PepsiCo and The Coca-Cola Company have "been major targets in part because they are well-known foreign companies that draw plenty of attention."

In 2003, the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants PepsiCo and The Coca-Cola Company, contained toxins, including lindane, DDT, malathion and chlorpyrifos — pesticides that can contribute to cancer, a breakdown of the immune system and cause birth defects. Tested

products included Coke, Pepsi, 7 Up, Mirinda, Fanta, Thums Up, Limca, and Sprite. CSE found that the Indian-produced Pepsi's soft drink products had 36 times the level of pesticide residues permitted under European Union regulations; Coca Cola's 30 times. CSE said it had tested the same products in the US and found no such residues. However, this was the European standard for water, not for other drinks. No law bans the presence of pesticides in drinks in India.

The Coca-Cola Company and PepsiCo angrily denied allegations that their products manufactured in India contained toxin levels far above the norms permitted in the developed world. But an Indian parliamentary committee, in 2004, backed up CSE's findings and a government-appointed committee, is now trying to develop the world's first pesticides standards for soft drinks. Coke and PepsiCo opposed the move, arguing that lab tests aren't reliable enough to detect minute traces of pesticides in complex drinks. On December 7, 2004, India's Supreme Court ruled that both PepsiCo and competitor The Coca-Cola Company must label all cans and bottles of the respective soft drinks with a consumer warning after tests showed unacceptable levels of residual pesticides.

Both companies continue to maintain that their products meet all international safety standards without yet implementing the Supreme Court ruling.[citation needed] As of 2005, The Coca-Cola Company and PepsiCo together hold 95% market share of soft-drink sales in India. PepsiCo has also been alleged to practice "water piracy" due to its role in exploitation of ground water

resources resulting in scarcity of drinking water for the natives of Puthussery panchayat in the Palakkad district in Kerala, India. Local residents have been pressuring the government to close down the PepsiCo unit in the village.

In 2006, the CSE again found that soda drinks, including both Pepsi and Coca-Cola, had high levels of pesticides in their drinks. Both PepsiCo and The Coca-Cola Company maintain that their drinks are safe for consumption and have published newspaper advertisements that say pesticide levels in their products are less than those in other foods such as tea, fruit and dairy products. In the Indian state of Kerala, sale and production of Pepsi-Cola, along with other soft drinks, was banned by the state government in 2006, but this was reversed by the Kerala High Court merely a month later. Five other Indian states have announced partial bans on the drinks in schools, colleges and hospitals.

Pesticide residuals controversy

• 6 August 2003 – The Delhi based Center for Science and Environment (CSE) reveals that it has conducted a study on samples of 12 major soft drink brands sold in the country for the residual levels of pesticides and found the levels to be far too high when compared with the same in the samples from developed countries.

• 7 August 2003 – Pepsi India comes up with a press release stating that all Pepsi products conform to the most stringent of quality standards world over. The regular testing and stringency norms at Pepsi, it seems, require the most sophisticated and

specialized tests and equipment to be able to detect the pesticide residue at 0.1 parts per billion levels. Moreover, CSE is not a government accredited body certified for the capability of carrying any such tests, says the press release. The press release also cites the name of ―an independent world-class laboratory‖ – VIMTA, which was accredited by the National Accreditation Board for Testing & Calibration for Laboratories (NABL), as having tested the Pepsi products against several stringent norms. Mutual mudslinging begins as the company openly questions the credibility of the tests done by CSE and its capability in conducting such tests.

• 22 August 2003 – Union Health minister Sushma Swaraj issues statement that only three samples out of the 12 in the contention meet the EEC norms; while the other samples have residue levels above the acceptable limits, they are only 2 to 6 times more than the acceptable level unlike 30 to 35 times as claimed by the CSE; This has been the result of tests conducted by two laboratories, the Mysore-based Central Food Technological Research Institute (CFTRI) and the Kolkata-based Central Food Laboratory (CFL).

• 23 August 2003 – The government appoints a 15-member all party Joint Parliamentary Committee under the leadership of Sharad Pawar to delve into the issue and submit a report on the same in the next session. The committee is also expected to suggest the safety standards for pesticide residue levels in soft drinks, fruit

juices and other beverages that have water as the main ingredient.

• February 2004 – The JPC submits its report to the parliament, saying that the tests conducted by CSE are accurate and India needs to come up with a set of standards for carbonated beverages. Central Committee on Food Standards (CCFS) endorses the JPC report and says it will set final standards. Bureau of Indian Standards (BIS) also starts revising its standards.

• June 2004 – Pesticide Residue Sub-Committee of CCFS meets and decides to do year-long monitoring.

• November 2004 – CCFS meets and decides to set up National Expert Committee to study the matter.

• 8 August 2006 – Four states – Gujarat, Madhya Pradesh, Rajasthan and Chattisgarh ban the sale of Coke and Pepsi in the educational and governmental institutions. The ban is a consequence of CSE’s report stating that even now, the pesticide levels in these drinks are more than 24 times above the limits set by BIS. While the top management of both the companies insists that their products adhere to the most stringent norms and are safe for consumption, CSE toughens its stand that the Cola companies are misleading the general public and have a long way to go before actually meeting those safety norms.

• 10 August 2006 – Kerala announces a complete ban on production and sale of carbonated soft drinks, including Coca-Cola and Pepsi, while Karnataka announces a ban on sale of colas in schools and state-run hospitals.

• 14 August 2006 – PepsiCo India Chairman Rajeev Bakshi reiterates that the company’s products in India are as safe as anywhere else in the world. He expresses the company’s willingness to support the government in setting up criteria for pesticide residues in soft drinks, but insists that a protocol for testing has to be developed, which is not to stall notification of BIS norms, but a measure to ensure that the testing procedure is validated by series of labs in India and the world over.

• 22 August 2006 – The expert committee constituted by union health minister Anubumani Ramadoss quashes the CSE’s report on pesticide residue levels stating that the experiment methodology has lot of flaws in it right from sampling to reporting the residue levels.

• 22 September 2006 – The Kerala High Court quashes the government’s ban on production and sale of the Colas in the state. The state government is exploring other alternatives.

• 10 January 2007 – Pepsi India Holding chairman Rajeev Bakshi exits Indian operations.

• 16 February 2007 – The apex court accepts the appeal of Kerala state government against the High Court judgment quashing the ban on production and sale of Coca-Cola and Pepsi in the state.

Matter of contention

The presence of pesticide residues in the samples of soft drinks manufactured and distributed in India by the Pepsi India holding company are at levels greater than those present in the samples of similar products in US and Europe. Each of the three major parties involved, i.e., The Cola companies, CSE and the government, differ on what is acceptable standard for the pesticide residue levels in the soft drinks. While the Cola companies contend that their products in India are as safe as they are elsewhere, CSE is particular about the fact that the pesticides present in the soft drinks are carcinogenic in nature and the Cola companies are apathetic about this fact. The government neither cracked the whip on the Cola companies, nor did it play dumb spectator. The government says that while it is true that the residue levels of pesticides in soft drinks are above the EEC norms, they are not as high as those values reported by CSE. The matter has led to contemplation of setting criteria for the standard levels of pesticide residues in non-alcoholic beverages in India. The issue is alive for the past three years and no specific measures have come out till now in this regard.

Soft drinks market in India

India is one of the top five markets in terms of growth of the soft drinks market. The per capita consumption of soft drinks in the country is estimated to be around 6 bottles per annum in the year 2003. It is very low compared to the corresponding figures in US (600+ bottles per annum). But being one of the fastest growing

markets and by the sheer volumes, India is a promising market for soft drinks. The major players in soft drinks market in India are PepsiCo and Coca-Cola Co. like elsewhere in the world. Coca-Cola acquired a number of local brands like Limca, Gold Spot and Thums Up when it entered Indian market second time. Pepsi Co’s soft drink portfolio consists of Miranda and 7Up along with Pepsi. The market share of each of the company is more or less the same, though there is a conflict in the estimates quoted by different sources

The major ingredient in a soft drink is water. It constitutes close to 90% of the soft drink content. Added to this, the drink also contains sweeteners, Carbon dioxide, Citric Acid/Malic acid, Colors, Preservatives, Anti Oxidants and other emulsifying agents, etc.

Social implications

The first time when CSE conducted tests on samples of 12 soft drinks, it found out that the pesticide residue levels in these samples are as high as 30 to 35 times that of the levels acceptable by EEC norms.

Indian soft drinks market is not under any regulation. Prevention of Food adulteration act 1954 does not include soft drinks. None of the BIS standards that existed before August 2003 had any guidelines or set criteria for the residue levels of pesticides in the soft drinks. But different international agencies have set standards for the residue levels of pesticides. The European

Economic Community (EEC) sets the maximum admissible concentration of individual pesticides and related products in drinking water at 0.1 parts per billion to ensure that the toxicity is not dangerous to human beings. For a few pesticides like aldrin, dieldin and heptachlor epoxide the admissible limit is even more stringent, i.e., 0.03 parts per billion.

The samples tested were found to contain four pesticides more often than others – Lindane, DDT and its metabolites, Malathion and Chlorpyrifos. Each of these can have detrimental effects on the general well-being of human beings. Lindane accumulates in the fat tissues and can cause damage to liver, kidney and is suspected to be carcinogenic in nature. DDT and its metabolites are found in almost 80% of the samples tested. DDT and its metabolites have negative impact on the potency levels of human beings and can increase the incidence risk of breast cancer among the female population. Chlorpyrifos is suspected to effect the functioning of the brain. It also affects the immunological system of the body. Malathion is also carcinogenic in nature.

Some of those who sympathize with PepsiCo in this whole pesticide saga say that the per capita consumption of soft drinks in India is too small for any of these pesticide residues in the soft drinks to have any appreciable effect if at all on the consumers. Though this may be true to certain extent, it has been scientifically proven that the excretion of some of the aforementioned pesticides from the human body is extremely slow even after the intake ceases. Moreover, all the aforementioned pesticides are proven to be highly carcinogenic in nature.

The main reason cited for the highly unacceptable levels of pesticide residue levels in the soft drinks is mainly because of the negligence on the part of the companies to process the ground water before using it in the manufacturing process. The ground water in general, is contaminated because of unregulated and indiscriminate use of pesticides in India.

The public response to CSE’s findings has been very sharp as reflected by steep drop in sales of the soft drinks immediately following the release of CSE’s findings. [14] Though there was no hue and cry all over, the general public seems to have taken strong notice of the fact that all is not well with the soft drinks produced and marketed by the Cola Companies. The blatant denials by the head honchos did not allay the fears of the general public.

Economic implications

Despite of the initial knee-jerk reaction, the general public by and large has not been paying much attention to the Pepsi pesticides issue. The ban imposed by some of the states will hit the profitability of the company’s operations. The thing really worth mentioning is the reluctance of both the Cola Companies in accepting the fact that they have been following different safety standards at different places. All through the issue, the chairman of Pepsi India Holding Rajeev Bakshi was adamant that Pepsi’s products in India are as safe as anywhere else. While it may be true that extremely low levels of per capita consumption render any fears of toxic effects of pesticides unreasonable, the reluctance of the Cola Companies in accepting the fact that the ground water

used in the manufacturing process is not sufficiently treated, is an ominous sign to the consumer.

The cost involved with such processing and subsequent testing of the water samples for residue levels might not be exorbitant in comparison to the amount of damage from not taking any such initiative might cause in the long run. In the age of triple bottomline, the overall behavior of Pepsi India in the pesticides issue leaves a lot desired.

Ingredients:

Pepsi-Cola contains basic ingredients found in most other similar drinks including carbonated water, high fructose corn syrup, sugar, colorings, phosphoric acid, caffeine, citric acid, and natural flavors. The caffeine-free Pepsi-Cola contains the same ingredients minus the caffeine.

The original Pepsi-Cola recipe was available from documents filed with the court at the time that the Pepsi-Cola Company went bankrupt in 1929. The original formula contained neither cola nor caffeine.

Ingredients as seen on products: carbonated water, glucose-fructose and/or sugar, caramel colour, phosphoric acid, caffeine, citric acid, flavour.

More About Pepsi Co.

PepsiCo, Incorporated (Short for Pepsi Company)

(NYSE: PEP) is a large conglomerate with interests in manufacturing, marketing and selling a wide variety of carbonated and non-carbonated beverages, as well as salty, sweet and grain-based snacks, and other foods. Besides the Pepsi-Cola brands, the company owns the brands Quaker Oats, Gatorade, Frito-Lay, SoBe, Naked, and Tropicana, Mountain Dew, Mirinda and 7up(outside the USA).

Indra Nooyi, chief executive of PepsiCo since 2006, has focused on maintaining the company's leadership in the snack food industry by being on the forefront of marketing healthier snacks and striving for a net-zero impact on the environment.[1] This focus on healthier foods and lifestyles is part of Nooyi's "Performance With Purpose" philosophy.

Amount per 100mL

Energy 100.5kJ Fat 0 g Sodium 0.98 mg Carbohydrates 11.74 g Sugar 11.04 g Protein 0 g Caffeine 10 mg

Today, beverage distribution and bottling is undertaken primarily by associated companies such as The Pepsi Bottling Group (NYSE: PBG) and Pepsi Americas(NYSE: PAS). PepsiCo is a SIC 2080 (beverage) company.

History

Headquartered in Purchase, New York, with Research and Development Headquarters in Valhalla, NY, The Pepsi Cola Company began in 1898 by a Pharmacist and Industrialist Caleb Bradham, but it only became known as PepsiCo when it merged with Frito Lay in 1965. Until 1997, it also owned KFC, Pizza Hut, and Taco Bell, but these fast-food restaurants were spun off into Tricon Global Restaurants, now Yum! Brands, Inc. PepsiCo purchased Tropicana in 1998, and Quaker Oats in 2001. In December 2005, Pepsico surpassed Coca-Cola Company in market value for the first time in 112 years since both companies began to compete.

Corporate governance

Current members of the board of directors of PepsiCo are Indra Nooyi C.E.O., Robert E. Allen, Dina Dublon, Victor Dzau, Ray Hunt, Alberto Ibargüen, Arthur Martinez, Steven Reinemund, Sharon Rockefeller, James Schiro, Franklin Thomas, Cynthia Trudell, and River King.

On October 1, 2006, former Chief Financial Officer and President Indra Nooyi replaced Steve Reinemund as chief executive officer. Nooyi remains the corporation's president, and became Chairman

of the Board in May 2007.Mike White is the President of Pepsi International Division.

Former top executives at PepsiCo:

Steven Reinemund D. Wayne Calloway John Sculley Donald M. Kendall Christopher A. Sinclair Alfred Steele

PepsiCo brands:

PepsiCo owns five different billion-dollar brands. These are Pepsi, Tropicana, Frito-Lay, Quaker, and Gatorade. The company owns many other brands as well.

Pepsi, Caffeine-Free Pepsi, Diet Pepsi/Pepsi Light, Caffeine-Free Diet Pepsi, Caffeine-Free Pepsi Light, Wild Cherry Pepsi, Pepsi Lime, Pepsi Max, Pepsi Twist and Pepsi ONE.

Other U.S. carbonated soft drinks, including Mountain Dew, Mug Root Beer, Sierra Mist, Tropicana Twister Soda and Frawg,

7 Up (Globally, outside the USA) Other U.S. beverages, including Aquafina (Flavor Splash,

Alive, and Twist/Burst), Tava, Dole, Gatorade, Izze, Mountain Dew AMP, Propel Fitness Water, SoBe, Quaker Milk Chillers, Ben & Jerry's MilkShakes, and Tropicana

Beverages marketed outside the U.S.: Alvalle, Concordia, Copella, Evervess, Fiesta, Frui'Vita, Fruko, Junkanoo, Kas, Loóza, Manzana Corona, Manzanita Sol, Mirinda, Paso de los Toros, Radical Fruit, San Carlos, Schwip Schwap, Shani, Teem, Triple Kola, and Yedigun

Frito-Lay brands: Baken-ets, Barcel, Bocabits, Cheese Tris, Cheetos, Chester's, Chizitos, Churrumais, Cracker Jack, Crujitos, Doritos, Fandangos, Fritos, Funyuns, Gamesa, Go Snacks, James' Grandma's Cookies, Hamka's, Lay's, Miss Vickie's, Munchies, Munchos, Nik Naks, Ollie's Meat Snacks, Quavers, Rold Gold, Ruffles, Rustler's Meat Sticks, Sabritas, Sabritones, Sandora, Santitas, Smartfood, The Smith's Snackfood Company, Sonric's, Stacy's Pita Chips, Sun Chips, Tor-tees, Kurkure, Tostitos, Walkers, and Wotsits

Quaker Oats brands: Aunt Jemima, Cap'n Crunch, Coqueiro, Crisp'ums, Cruesli, FrescAvena, King Vitaman, Life, Oatso Simple,Quake, Quisp, Rice-A-Roni, and Spudz

In 2007, Nooyi spent $1.3 billion on healthier-alternative brands like Naked Juice, a California maker of soy drinks and organic juice.

Pepsico has also recently acquired a 50% stake in Sabra Salads

Biblography:

1) www.google.com

2) www.wikipedea.com

3) www.pepsico.com