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Business ethics of pepsi
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1.2 PepsiCo was created in 1989 by pharmacist Caleb Bradham. It was originally named “Brads Drink” but because of the pepsin and kola nut ingredients Bradham decided it would be better to call it Pepsi-Cola. In 1910 Pepsi franchised to 24 states and sold over 100,000 gallons of their syrup annually. In 1923 Bradham sold the trademark to Craven’s Holding Corporation, who shortly after sold it to a New York stockbroker named Roy C. Megargel. Within a few years the company was earning over a millions dollars and was on its way to making history. Pepsi generates over $98 billion in retail sales, and holds 36% of the total snack food market in the United States. Pepsi-Cola’s headquarters are located in New York with nearly 300,000 employees …show more content…
Key stakeholders consist of consumers, that will purchase the product, but are afraid that this product will ruin their health and well being and will not purchase it if that is the case. Another key stakeholder is employees who help make the product, but are concerned they will become targeted for the mistakes of amounts of ingredients, packaging, or waste from the factories. Then their are key ethical issues that need to be focused on the first is when Pepsi was facing heavy criticism for producing a product with packaging that contributes to a large amount of waste. Secondly In 2007 attention was drawn to Pepsi’s drink Aquafinia water with the assumption that the water in the bottle was spring water from the mountains, although it was not. Altogether Pepsi-Cola has done good and bad in their business, they have had some negative ethical issues, but have managed to make quiet a name …show more content…
People will be delighted by the fact that they have finally come forward and confessed to the mistake that was made. The negative that will happen when a public announcement is made is that they are confessing the wrong that has been done, to people who may never had known of it. Those people will now be aware of the mistake. Another negative is that some will think that Pepsi is just doing this to get ahead, instead of being truly sincere about their apology. The positive for a new packaging system is that their will be less waste, making India a less polluted environment. The negative is that they need to change all of their packaging and come up with a new system of how they can use less plastic. The positive of a Go-green campaign is that they will make people more aware of recycling, and help the environment. The negative is that it would be a halt of production because they are focusing on the campaign and not their products. Their is a positive to fixing the internal relations with the employees that are working for the company and that is that the workers will love to hear that they are doing a good job from someone higher up. They will also enjoy getting the chance to truly meet the boss and speak with them about any issues, concerns, or
Coke continuously out-stands Pepsi, even though they share a very similar taste and colour, however Coke should not be the drink that receives all the love and attention for what it offers. Despite their similar soda colour, the drinks actually contain some different ingredients, which produce a different taste, and affect the body differently. Furthermore, the way the companies markets their drinks makes a huge contribution to how successful their products will become. The major element for success however stems from their impact on society and how the companies utilize their social power to evolve. The two major soda companies are constantly head to head with one another, yet it is what they do that sets them apart.
The pros of their core values which rely heavily on strong ethics and social responsibility have managed to take their product from garage brewing company to building established distribution in many states across the US. They have shown the consumer they are conscience about their carbon footprint and support their community by giving back. But by relying on those assets has hindered their ability to develop a strong marketing strategy that can appeal to other markets. Although they are proud of the name they have built, they must understand they need to past their idea of not messing with a good thing. For years, they have thrived on word-of-mouth communication to sell the brand and have had a marketing strategy that consists of relational marketing (Ferrell & Hartline, 2011). With their competitive advantage being enhanced by their strong ethics and social responsibilities they show to their community, they must understand they cannot rely on their historical word of mouth marketing to strive in their business. They must find a way to bring the two concepts together in order to strengthen their business and excel above their
The Porter’s model of competitive advantage of nations is based on four key elements including factor endowments, demand conditions, related and supporting industries and firm strategy, structure and rivalry. This makes it suitable in understanding the competition existing in the soft drinks industry in the Asian markets. The factor conditions identify the natural resources, climate, location, and demographics. Coca cola and Pepsi enjoy the growing population in the Asian markets (Yoffie, 2002). A higher population guarantees the two companies adequate revenues. Other factors include communication infrastructure and availability of skilled workers. Most of the Asian countries are embracing new technologies that grow much knowledge of the diverse beverage drinks. Secondly, the demand conditions play a significant role in enhancing competitiveness for the firms. Both Coca cola and Pepsi are an
Development in the political arena would have been handled well if Coke would have evaded having to sell 49% of its equity by approving to start new bottling plants. The timing of entry into the Indian markets brought In terms of promotional activities, the advertising and giving away of free offers and vacations by Coca cola and Basmati rice by Pepsi, the coca cola’s goal in connecting the youth to the market, the different promotional TV campaigns in India using of celebrities, and the Pepsi sponsorship of cricket and soccer sports. In terms of pricing policies, Pepsi got a quicker market share by their belligerent pricing policies and coca cola’s 15-25% price cut down in the market. In terms of distribution arrangement, the bottling and packaging of products for better distribution around Also, to save and recycle the usage of water.
Caleb Bradham, a New Bern, North Carolina pharmacist, renamed "Brad's Drink," a carbonated soft drink he had created to serve his drugstore's fountain customers. The new name, Pepsi-Cola, was first used on August 28, 13 years after Coca-Cola. In 1902 Bradham applied for a trademark to the U.S. Patent Office, issued stock and began selling Pepsi syrup. By 1923, Pepsi-Cola Company was declared bankrupt and its assets were sold to a North Carolina concern, Craven Holding Corporation, for $30,000. Roy C. Megargel, a Wall Street broker, bought the Pepsi trademark, business and goodwill from Craven Holding Corporation for $35,000, forming the Pepsi-Cola Corporation and in 1932 the trademark was registered in Argentina.
PepsiCo Inc. is an American food and beverage corporation it was founded in New York in 1965.It manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. Mainly it is Producing Non-alcoholic beverage and Food processing items. The drink PEPSI was first made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. It was introduced as “brad’s drink”. The brand was trademarked on June 16; 1903.PepsiCo operates in over 200 countries. Its largest markets are United Kingdom and North America. Pepsi products are found all over the world. Their products will come under these following categories.
Being the first company to provide a carbonated performance enhancing drink, Red Bull opened up a whole new market in the drinks industry. Through well developed and initiated marketing strategies red bull has become much more than a performance enhancing drink – it has now become a lifestyle. Recognisable to most, the blue and silver can with two red bulls about to clash in front of a yellow sun is now a brand identity recognised in 169 countries (Red Bull, 2016). As the performance enhancing drinks market expands, Red Bull is still able to boast a high majority of market share due to the solid understanding they have of their consumers needs. With clever use of the marketing mix and the four P’s, Red Bull has been able cement their spot in the market as a premium quality drink that helps fight tiredness, fatigue and lack of energy – something that many of us can relate to. Red Bull is mainly targeting a segment of 18 to 34 year-old males based on their interests – being outdoors, taking risks and having fun.
By defining “real stakeholders” as those who have a legitimate claim and firm has responsibility towards them and the influence and power are reciprocal (Fassin 2009), the following groups are real stakeholders for whom Coca-Cola HBC is responsible in terms of both management and ethical issues.
As we all should know, PepsiCo is one of the world’s leader in convenient food and beverages. PepsiCo shares are traded worldwide and particularly in NYSE (United States). PepsiCo is in the same line with Coca cola and Cadbury Schweppes as the dominating beverage companies. PepsiCo has successfully built a great brand name rivaling with coca cola, probably because PepsiCo unlike coca cola has its own bottling companies. With a competitive strategy based on differentiation rather than cost leadership like its fellow competitors PepsiCo invests highly in new packaging, flavors, formulas to outsmart their competition. Founded in 1919, producing a variety of sweet and grain-based snacks, carbonated and non-carbonated
Since neither of the products created the measurable sales and market share increase Pepsi needed, PepsiCo International (PCI) executives conceived of a plan to create a new tagline and re-brand all existing Pepsi products, signage, advertising materials and in-store display units. The executives envisioned a simultaneous, global campaign that would create stronger brand equity and resonance in the consumer consciousness.
Pepsi was introduced in 1893 by Caleb Bradham as “Brads Drink” which then was renamed to “Pepsi Cola” in 1898. There wasn’t many options for advertising in this era due television not being introduced into households till the late 1900’s. One of the first Pepsi Cola advertisements was a black and while flyer that had a few characters laughing and read “Whoope!!! Zoom!! Drink Pepsi-Cola” at an advertisement from Pepsi, the have bright blue, red, and white colors that pop and are eye catching. Comparing this ad with a current ad and modern technology, you can see that Pepsi’s marketing and advertising techniques have come a long way. Reviewing a recent Pepsi advertisement, you can see that they have made groundbreaking changes to their branding techniques. First I will I will note that their choices in colors (red, blue, and white) for their brand are not only eye popping, but in a way symbolize the colors of America. I am not sure if this was their intent but it sure does standout. Next, there slogan in the ad states “Help Kick Off The Pepsi Super Bowl Halftime Show”, this ad targets a very large group people because its directly relating to one of the biggest sports event which is Super
The ultimate motive of the event is to grasp the customers’ purchasing power by lowering its products’ prices after specifications development. Previously, I learned that Pepsi products revolve around consumer’s perception value in respect to Coca-Cola pricing strategy. The Pepsi marketing strategy does not focus on eliminating the dominant Coca-Cola drinks. Instead, they adjust their prices competitively to offer cheaper cold drinks with a refreshing feel than the other brands. Pepsi has taken the advantage of increased costs of drink production, which many companies could not afford to lower their prices. As a surviving tool, PepsiCo has diversified its products and competitively lowered its prices with standard tasty drinks. Moreover, its strategy to merge with Wal-Mart made the Pepsi Company to maintain the competitive prices in the drinks industry. The Company maintains current prices by strategically cutting down the production and operation costs in the product
PepsiCo's mission listed on their website said as follows: "Our mission is to be the world's premier consumer products company focused on convient foods and beverages. We seek to produce finanical rewards to investors, business partners, and communities in which we operate. And in everything we do, we strive for honesty, fairness, and intergrity." Their mission is done through programs with environmental care, activities that aid the society, and a commitment to build shareholder value. PepsiCo puts significant emphasis on shareholders throughout all aspects of the company.
Thanks to my fascination with PepsiCo and partly because this is an assignment, I went online and search for some of PepsiCo’s most successful and ongoing marketing campaigns and strategies. During my research I noticed several daring marketing strategies Pepsi employed throughout the years. For example, gaining the support of Michael Jackson in the 1980’s and latest gaining the endorsement of global pop star Beyoncé.
The case study "Cola Wars Continue: Coke and Pepsi in the Twenty-First Century" focuses on describing Coke and Pepsi within the CSD industry by providing detailed statements about the companies’ accounts and strategies to increase their market share. Furthermore, the case also focuses on the Coke vs. Pepsi goods which target similar groups of costumers, and how these companies have had and still have great reputation and continue to take risks due to their high capital. This analysis of the Cola Wars Continue case study will focus mainly on the profitability of the industry by carefully considering and analyzing the below questions: