Case study of pepsi marketing strategies

Pop icons like Michael Jackson and Lionel Ritchie and youth sensation like Michael J Fox became part of the Pepsi campaigns in the s where by Pepsi began to beat Coke and come out the winner. Coca Cola was and is still leading in when it comes to market share of its cola brand.

Case Study: PepsiCo’s International Marketing Strategy

Do you agree with their decision to introduce Pepsi Next? This campaign was aimed at proving Pepsi as a better tasting drink than its rival Coke and involved blind tasting of the two products to choose the better one.

Obviously if these tests are successful and these products are fully rolled-out to the market as a standard product, it appears that there could be a third sub-category of soft drinks; traditional, diet, and now mid-calorie beverages.

Retail dollar sales have been supported somewhat by price increases. That challenge is obviously one reason that Pepsi has included a heavy free sample aspect in their promotional mix. That is, they would want to continue to protect their flagship brands and ensure that they are clearly understood by consumers and ensure that too many products do not confuse their positioning.

The firm used a variety of promotional tools, including a series of humorous YouTube videos with pretend and somewhat inept Coke brand managers who were intent on taking legal action against Coke Zero. These consumer purchases have tended to shift to other beverage solutions, such as water, energy drinks and juices.

Though the effort was commendable it was a major blunder.

And, as discussed above, Pepsi believes that health and sugar-reduction is a long-term trend that will become more prominent.

The company was launched officially in the year But he too could not revive the business. He was inspired to experiment with various products and ingredients to create a suitable summer drink that became highly sought after way back in the summer of Of course, while Pepsi has indicated that they are taking a long-term view of the market and this product, these statements may or may not be true.

They had a huge fan following and when they were seen endorsing the brand, the impact was instantaneous. As would be assumed from the launch support for the new product, the results from the consumer taste-tests were very positive. Here too Coke had the early bird advantage. Hence in Japan they had to break their tradition of running with the global campaign and come up with a campaign that the Japanese would identify with and was more Japanese.

It could also be argued that the early line extensions were designed to help strengthen and energize the brand, as it is struggling with its repeat sales. Brand Name Selection The brand name selection for Pepsi Next is quite interesting as it has a significant forward looking emphasis.

In the USA and European markets Pepsi still uses promotional campaigns that aim to break the colour barriers with stars like Britney Spears, Beyonce and Haley Berry appearing in its ads.

While there is a significant risk that this type of product had the potential to cannibalize Pepsi, Diet Pepsi and Pepsi Max, the firm believes based upon the test market results that Pepsi Next will attract new consumers and energize their entire Pepsi brand family.

The main point was neither company had a cost advantage. With this in mind, even a fraction of market share in the CSD market is significant. The main message of the TVC is that Pepsi Next is so amazing and innovative that nothing else seems to stand out.

One of the underlying factors driving this change in behavior has been identified as the preference that some consumers have to reduce sugar.In February the Pepsi Next product was launched into the US market.

This case study provides students with an interesting insight into PepsiCo’s new product process and some of the challenging decisions that they faced along the way. STRATEGIC MANAGEMENT FINAL PAPER PEPSICO CASE STUDY ANALYSIS LECTURER: Sisdjiatmo K.

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Case study of pepsi marketing strategies
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