Introduction

Life cycle of a product is recognized as a cycle in which it goes from introduction to removal or withdrawal or eventual demise in the market. The life cycle of a product has mainly four stages i.e. introduction phase, growth phase, maturity phase, and decline phase. However, pre-launch stage is also considered before introduction phase because of its development state. The management of a company and marketing professionals uses this concept to make effective decisions to support and maintain the position of this product in the market through improving stages of the product (Jong, 2018). Now, this report is taken to explain about the product life cycle of Pepsi Cola as how this soft drink product has grown in the global market one of most preferred brand. The product life cycle of Pepsi Cola can also increase the understanding of the other scholars to study and conduct further research.

About Pepsi Cola

Pepsi Cola is a carbonated soft drink products manufactured by Pepsico. Pepsico is an American based MNC that manufacture and sales foods, snacks and beverages products in its global business operations. This company has around 22 brands that help to achieve $1 billion retail sales profits in the market. The foods and beverages products are loved by consumers throughout the world (Pepsico, 2021).

Life Cycle of Pepsi Cola

Pre-launch:
Pre-launch stage of a product is identified as no sales and profit of the company in the market because the product is yet in development phase and waiting for a launch. Therefore, in life cycle of Pepsi Cola, the pre-launch phase was associated with development of a formula to cure digestion problem. In pre-launch of Pepsi Cola, pharmacist, Caleb Brad ham developed ‘Brads Drink’ in 1898 for medicinal purposes in aid digestion. When the customers consumed this medicine, they took strong interests on this product and motivated Caleb Brad ham to rename this drink (Akash, Hasan, Farhad, Akter & Talukder, 2018). After this requests, Caleb Brad ham renamed this drink as ‘Pepsi Cola’. Additionally, Brad also made a trademark as ‘Pep Cola’ for $100 to take advantage of intellectual property right.

Introduction Phase:
The introduction phase of the product life cycle is the launching of a product in the market to sale it and identifies responses of the customers. At this stage, Pepsi Cola in the market was initiated by Brad in the year 1902 in the product life cycle phase. Brad sold the Pepsi Cola syrup around 7,968 gallons in its first year. This was the first objective of Brad to initiate awareness and trial of the product. In introduction phase of the product life cycle of Pepsi Cola, Brad launched as a basic product without bottles (Akash, Hasan, Farhad, Akter & Talukder, 2018). The Pepsi Cola was sold in the market as soda fountains in the pharmacy of Brad. In this phase, a cost-plus pricing strategy was implemented in order to achieve a recuperate start-up costs quickly.
Further, a distribution strategy of the Pepsi Cola was selected in Brad’s pharmacy only in the introduction phase of product life cycle. At the same time, the awareness of the product is conducted through a celebrity endorsement initially in the market to increase demand of the product (Akash, Hasan, Farhad, Akter & Talukder, 2018). However, Brad avoided sales promotion of Pepsi Cola in launching time, but achieved support of the people to conduct its business at large extent..

Growth Phase:
The growth stage of a product life cycle is associated with increasing demand of the product. The growth phase of Pepsi Cola can be seen between 1930s-1970s in which the sales of this product were sky rocketed after acquiring Pepsi Cola by Loft Inc. The company attracted consumers through using competitive pricing strategy. It offered Pepsi Cola to consumers at the rate of 5 cent for 12 ounces that was very effective to attract customers compared to Coca Cola which was 6 ounces in the same rate (Akash, Hasan, Farhad, Akter & Talukder, 2018). Therefore, the value-for-money of the customers preferred Pepsi Cola more than the Coca Cola. Further, Pepsi Cola also adopted aggressive marketing strategy to increase its market share at growth phase.

In the competitive market place, Pepsi Cola also focused towards improving this product continuously. Pepsi Cola initiated to sale the product in bottles rather than just selling soda fountains in the market. Further, the price of the product at growth phase was implemented as low price penetration strategy in order to gain market share (Sehrawat, 2019). This pricing strategy helped the company to grow its sales and brand image massively in the market. The company made the Pepsi Cola as consumer good in this time period and use extensive distribution network to increase sales of the product and growth in the market. The advertisement of the Pepsi Cola was conducted using Radio as a medium of product promotion to reach towards a mass audience. The marketing campaign of the company was so effective to take competitive advantage over Coca Cola in 1975. The company also struggled to maintain demand of Pepsi Cola in this time period (Sehrawat, 2019).

Maturity Phase:
The maturity phase of the product life cycle of Pepsi Cola was started since 1980s and currently it is achieving around $20 billion revenue every year from global business operations. The Pepsi Cola is now a most profitable product of the company and a brand image to attract a number of customers in global market. Pepsi Cola is now a well established brand in the global market and most profitable stage of the product life cycle (Restuccia, de Brentani, Legoux & Ouellet, 2016). In maturity stage of life cycle, Pepsi Cola avoids to enter price-war during this very competitive market place where other competitors, including Coca Cola challenge the market share of the company.

Further, Pepsi Cola in maturity phase has a global distribution in order to penetrate emerging economies of the world. In maturity stage, the advertisement of the product can be seen as differentiation of the brand using celebrity endorsement in order to position the product for all age groups of the customers. The Pepsi Cola considers sales promotion to manage its brand value in the market consistently through value adding offers (Restuccia, de Brentani, Legoux & Ouellet, 2016).

Decline Phase:
The decline phase of this company has not started yet in product life cycle of the Pepsi Cola. This is because of the growing interest of consumers and sales of the products. However, it has different strategies to address the declining stage of the product in the future, such as cost reduction, strategic advertisement, improving product distribution strategy, etc (Restuccia, de Brentani, Legoux & Ouellet, 2016).

Conclusion

After discussion of the life cycle of Pepsi Cola, it can be concluded that it is a great business case study to increase learning and understanding about the success of the business and remaining competitive in the global market. Te life cycle of the Pepsi Cola provides unique information about the marketing strategies to implement when entering each phase of the product life cycle. This can help the other marketers to adopt the marketing strategies of the Pepsi Cola and remain sustainable at maturity phase of the product life cycle for a long-time.

References

Akash, A., Hasan, Z., Farhad, B., Akter, R. & Talukder, S. (2018). FROM BRAD’S DRINK TO PEPSI- Product Life Cycle and Investment Analysis of Pepsi-CO. Retrieved from: https://www.academia.edu/40536783/FROM_BRADS_DRINK_TO_PEPSI_Product_Life_Cycle_and_Investment_Analysis_of_Pepsi_CO
Jong, T. (2018). Trends to Note in Alcoholic Be o Note in Alcoholic Beverage Trademark Law That Can ademark Law That Can Impact the Decision Making Process for Businesses At Critical Points in the Alcoholic Be oints in the Alcoholic Beverage Product Lif oduct Life Cycle. Buffalo Intellectual Property Law Journal, 12(1), 19-98.
Pepsico. (2021). About the Company. Retrieved from: https://www.pepsico.com/about/about-the-company
Restuccia, M, de Brentani, U., Legoux, R. & Ouellet, J. (2016). Product Lifecycle Management and Distributor Contribution to New Product Development. Retrieved from: https://core.ac.uk/download/pdf/30611053.pdf
Sehrawat, S. (2019). PEPSICO’S SUSTAINABLE STRATEGIES. Journal of Management (JOM), 6(2), 81-83.