Demand of Pepsi

In: Business and Management

Submitted By Julliett87
Words 1218
Pages 5
Demand of Pepsi
Julliet
Indiana Wesleyan University
February 21, 2012
Abstract
Pepsi is a popular cola brand that is available for purchase at many convenient stores, grocery stores, department store, vending machines and restaurants. It is in an Oligopoly industry. One market place can have a stronger market share than another market place. There are several determinants of demand which can influence the shift in the demand curve left or right or decrease or increase in the demand.

Demand of Pepsi Pepsi cola is a cola/soda-pop beverage brand from PepsiCo. PepisCo is known as an Oligopolistic industry. There aren’t that many firms the market that Pepsi cola is in. Pepsi cola first made a public appearance in the 1890s as “Brad’s Drink”. It later became known as Pepsi. It was trademarked on June 16, 1903 and its first logo in 1905. Pepsi made a world appearance in 1909 with the first celebrity endorser, Barney Oldfield. Due to the high price of sugar, which was in high demand, during WW1, Pepsi Cola Company went into bankruptcy. It bounced back in 1936 and started to sell a 12-ounce bottle for 10 cents. Because price is a main determinant of demand, the price was then drop to 5 cents. This price boosted the sales for the company. The company started to market to African Americans. The strategy was done to help market to others who can enjoy and contribute to the brand and the new popularity of Pepsi. In 1975, Pepsi was voted most favorite beating out its rival Coca-Cola (lifestyle.iloveindia.com). There are many determinants of demand. These determinants can include price, price of other goods, income of the consumer, future expectations, tastes and preferences, and the number of buyers (Farnham, 2010, p. 19,20,21,22). “Demand is the relationship between the price of a good and the quantity demanded of that good” (Wikia.com). Price can determine the…...

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