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Rise in popularity of Pepsi

Rise in popularity of Pepsi

Discuss Rise in popularity of Pepsi within the Principles of Management / Perspective Management forums, part of the Resolve Your Query - Get Help and discuss Projects category; During the Great Depression, Pepsi gained popularity following the introduction in 1929 of a 10-ounce bottle. Initially priced at 10 ...

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Sunanda K. Chavan
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Rise in popularity of Pepsi - October 20th, 2010

During the Great Depression, Pepsi gained popularity following the introduction in 1929 of a 10-ounce bottle. Initially priced at 10 cents, sales were slow, but when the price was slashed to five cents, sales increased substantially.


With 12 ounces a bottle instead of the six ounces Coca-Cola sold, Pepsi turned the price difference to its advantage 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," encouraging price-watching consumers to switch to Pepsi, while 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 then ensued, with Guth losing. Loft now owned Pepsi, and the two companies did a merger, then immediately spun off the Loft Company.
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