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Rise in popularity of Pepsi

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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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Jiten Mazee
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Re: Rise in popularity of Pepsi - January 17th, 2016

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Originally Posted by sunandaC View Post
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.
Hey sunanda, thanks for sharing this lovely information about the success of Pepsi and as we know it is the leading soft drink company competing with Coke and others. I uploaded a document where you will get some more essential information on Pepsi.
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File Type: pdf PepsiLegacy_Book.pdf (4.03 MB, 0 views)
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beverage industry, coca cola, cold beverage, cold drinks, cold storage, distribution of pepsi, pepsi, pepsi logistics, popularity, popularity of pepsi, principles of management, rise
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