Pepsi Corporation and Its Subsidiaries Essay Example | Topics and Well Written Essays - 1750 words

Pepsi Corporation and Its Subsidiaries - Essay Example This made a great impact on the sales as it greatly increased more than its competitors such as Coca-Cola. In the year1940, sugar prices hiked and lead to Pepsi-Cola to drop from 23% to 16% market share. Alfred N. Steele, a former marketing executive with Coca-Cola Company, became President in 1949 and he tagged along 15 other former Coke managers. They came up with a campaign aimed at rejuvenating the company. He expanded the Vice President’s power and set aside $38 million for the purchase of new facilities and plants. He re-standardized the Pepsi-Cola’s taste, revitalized franchising agreements and launched an advertising campaign. All these changes made the image of Pepsi to be a fun, glamorous product from its low-cost portrait. In 1963, Donald M. Kendall took the oath of office after Steele’s death and under him, five policies were created; adverts to be carried out in a big and unpredictable way, expand the soft drink to new territories, come up with innovative packaging, to take Pepsi-Cola to the overseas and diversity through acquisition. PepsiCo was formed in 1965 when Pepsi-Cola and Frito-Lay Inc. merged. This was the company’s first move in diversification. (Fortune p. 148) From the Frico-Lay Inc.’s merge, PepsiCo continued with its acquisition policy. In 1968, North America Van Lines was acquitted. Later on in1970, Wilson Sporting Goods was added to the acquitted list. Lee waay Motor Freight was acquired in 1976 and the following year Pizza hut was acquired. In 1978, Taco Bell was acquired than in 1982 and 1986, La Petite Boulangerie and Kentucky Fried Chicken were acquired. However, PepsiCo had no managerial expertise in running a business that was not associated with beverages or food. This later led to Kendall selling van line, motor freight and sporting business. In 1986, D. Wayne Calloway succeeded Kendall. Calloway had previously held 9 positions with PepsiCo and played a major role in the success of Frito-Lay.