During World War II, Pepsi-Cola and Coca-Cola traveled around the world with the American flag, and their sales increased day by day. After World War II, Pepsi-Cola's sales were lower than those of Coca-Cola due to many factors, such as poor image, poor flavor, poor packaging, and poor quality management. Additionally, due to increased costs, PepsiCo was forced to raise prices, making it less competitive than before. Until the late 1940s, Pepsi-Cola's sales were sluggish.

At this time of crisis, business celebrity Alfred Mizomata Teele was appointed general manager of Pepsi-Cola. He and his subordinates believed that the main hope lay in transforming Pepsi from a cheap imitation of Coca-Cola into a premier soft drink. They thought the change would take several years. They realized that a large-scale attack on Coca-Cola would have two phases. The first phase, from 1950 to 1955, took the following measures: first, to improve the flavor of Pepsi-Cola; second, to redesign and unify the bottle and trademark; third, to redesign the advertising campaign and change Pepsi-Cola's image; fourth, Steele decided to concentrate on occupying the "takeaway market" that Coca-Cola had neglected; in the end, Steele selected 25 cities as the focus of special promotions in order to increase market share.

By 1955, Pepsi-Cola had overcome all major weaknesses and sales were rising significantly, and Steele was ready to plan a second phase of operations. The second phase consisted of directly attacking Coca-Cola's "on-premise only" market, specifically the rapidly growing vending machine and frozen beverage segments. In addition, it was decided to introduce new specifications of bottled beverages, which will provide convenience to customers in both the "takeaway market" and the "frozen beverage market". Finally, PepsiCo provides financial assistance to sellers willing to purchase and install Pepsi-Cola vending machines. Pepsi-Cola took these measures from 1955 to 1960, causing its sales to increase significantly. In less than 10 years, Pepsi-Cola's sales increased fourfold.