Pepsi Blue Case Study

1521 Words Feb 10th, 2006 7 Pages

During the 1990s, PepsiCo launched new products and engineered a global re-branding campaign in an effort to grow sales volume; reinvigorate their stagnant brand; and to close the increasingly large sales and market share gap between itself and its primary competitor, Coca-Cola. In 1993, Pepsi jump-started its marketing efforts by adding two brands to its portfolio: Crystal Pepsi and Pepsi Max. Crystal Pepsi, which was initially offered in the United States, failed to earn the company more than 2 percent volume share. Pepsi Max, which was launched in the United Kingdom, proved more successful, but because one of its primary ingredients was an
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Then, Pepsi Max marketing staff wondered if revenue raised from their successful brand would be siphoned into the Pepsi Blue project, thus cutting their product's marketing budget and ultimately affecting their sales.

I can certainly understand the executives' concerns as well as PCI's rationale for a new brand launch. Since the company's sales volume was stagnating, it needed a new brand to invigorate its sluggish portfolio. I think the Pepsi Blue logo re-design, association with the signature blue color and adoption of sales and marketing tactics that were better aligned with the young consumer market were all strong ways to add brand equity and to better compete with Coke.
I also agree with the concept of a global launch. I think that while it's logistically difficult and expensive to introduce a brand at the same time in multiple markets, it also creates greater impact and stronger brand equity in the long-run. I don't believe it would have been appropriate for Pepsi to wait for all their bottlers and regional manufacturers to provide their approval of the Pepsi Blue concept before moving forward with a global execution. This open-ended approach makes the campaign disjointed and it therefore would lose steam before it even began.
Before introducing Pepsi Blue, I would recommend additional market testing. While the Bahrain market test proved successful and provided valuable insight, testing a product in just

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