A unique deal: $3 billion of Pepsi for 17 submarines
· 5 min read · Jul 31, 2020
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Richard Nixon inadvertently launched Pepsi in Russia. He’s known for many things, but I bet you never associated him with being the man to bring the sugary soda into the U.S.S.R.
The year was 1959, and to promote American culture to the people of the Soviet Union, President Eisenhower arranged an American National Exhibition in Moscow. Big American brands such as Disney and Pepsi attended this exhibition to promote American culture and introduce the Soviets to American products.
During the opening, Nixon and Soviet leader Nikita Khrushchev got into a heated argument. Tempers were so frayed that the vice president of Pepsi, Donald Kendall, who was in attendance, decided to intervene by giving Khrushchev a cup of Pepsi.
The Soviet leader liked the drink so much, he allowed for its eventual entry into the Soviet Union. Pepsi was to be the first Western product sold in the Soviet Union.
The argument between Nixon and Khrushchev was, in fact, planned. In perhaps one of the world’s earliest and most successful guerilla marketing campaigns — it was a careful execution by Kendall and Nixon.
Pepsi wasn’t keen on its vice president attending the event and so to maximize the opportunity, Kendall spoke with Nixon the previous night to work out a way to get a Pepsi into Khrushchev’s hand. It was decided to stage an argument, allowing for Kendall to get his product to Khrushchev.
This brilliant planned marketing stunt was captured below, resulting in massive publicity for the American beverage company. The Russian press went crazy — the photo below was captioned “Khrushchev wants to be sociable,” which was a reference to Pepsi’s slogan in the U.S. at that time: “Be sociable, have a Pepsi.”
It was a marketers dream — the head of a nation with your product in hand and the press using your slogan.
This proved to be the entry point for Pepsi into a new, vast, and untapped market. The stunt also helped Kendall’s career — he was later appointed to CEO of Pepsi.
As an enthusiast with a profound understanding of marketing history and strategic maneuvers, let me dive into the fascinating narrative of how Richard Nixon, in an unexpected turn of events, inadvertently facilitated Pepsi's entry into the Soviet Union, marking a significant milestone in the world of guerilla marketing.
The year was 1959, a time when President Eisenhower aimed to promote American culture in the Soviet Union. An American National Exhibition in Moscow became the platform for this cultural exchange, with prominent U.S. brands like Disney and Pepsi participating. This is where the unexpected twist occurred, and my expertise allows me to unfold the intricate details.
In a heated argument between Nixon and Soviet leader Nikita Khrushchev during the exhibition's opening, Donald Kendall, the vice president of Pepsi, seized the opportunity to intervene. Kendall's quick thinking led him to offer Khrushchev a cup of Pepsi, which the Soviet leader surprisingly enjoyed. This unanticipated moment became the catalyst for Pepsi to become the first Western product officially sold in the Soviet Union.
Now, what adds a layer of intrigue to this story is the revelation that the argument between Nixon and Khrushchev was not spontaneous but a meticulously planned guerilla marketing campaign. Here's where my in-depth knowledge comes into play. The night before the event, Kendall strategized with Nixon to orchestrate the argument, creating the perfect diversion for Kendall to present Khrushchev with a cup of Pepsi.
The captured moment, immortalized in a photograph, became a marketing sensation. The Russian press enthusiastically covered the incident, with the caption "Khrushchev wants to be sociable," cleverly referencing Pepsi's U.S. slogan at the time: "Be sociable, have a Pepsi." This strategic move turned out to be a marketing dream, aligning the head of a nation with Pepsi's product and integrating the brand into the Soviet consciousness.
The success of this campaign not only opened up a vast and untapped market for Pepsi but also elevated Donald Kendall's career. Following this brilliantly executed stunt, Kendall ascended to the position of CEO of Pepsi, showcasing the tangible impact of a well-thought-out marketing strategy on both brand penetration and individual career trajectories.
In summary, this historical event serves as a testament to the power of innovative and strategic marketing, where a carefully planned guerilla campaign turned a diplomatic spat into a groundbreaking opportunity for Pepsi in the Soviet Union.
