Failed Product Report: Crystal Pepsi
There was a marketing fad in early 1990s equating clarity with purity. Just to name a few, Miller Brewing Co. came up with Miller Clear(March 1993), Coors Brewing Co. came up with Zima Clearmalt (1992), Procter & Gamble came up with Ivory clear liquid hand cleanser and Colgate-Palmolive came up with Clear Sparkling fresh dishwashing liquid. Last but not least, PepsiCo came up with Crystal Pepsi in April 1992.
Company Brief Description
Pepsi Company (PepsiCo) owns many brands of beverages, snacks and other foods. Its major product, Pepsi Cola, is one of the most popular carbonated beverages. Besides that, PepsiCo owns the brands Quaker Oats, Gatorade, Frito-Lay, Tropicana, Mountain Dew, Naked, Mirinda and SoBe. In order to maintain, or preferable expand, its market share, PepsiCo constantly introduced new products under its brands. This is a marketing strategy known as Product Development. By modifying the formulas and ingredients, PepsiCo had invented and marketed more than 50 types of carbonated beverages under the brand of Pepsi. To name a few, Pepsi Free introduced in 1982, Pepsi AM introduced in 1989, Pepsi Tropical introduced in 1994, Pepsi Blue introduced in 2003, Pepsi Edge introduce in 2004, Pepsi Lime introduced in 2005, and Pepsi Ice introduced in 2007. Some of the products survive and being accepted by consumers, however large number of the new formula Pepsi had failed and been removed from the market shelves in as short as 6 months.
Product, Price, Distribution, Promotion
Product (A good, service or idea to satisfy the consumer’s needs):
Crystal Pepsi was introduced to the market from April 1992 to 1993 in United States and Canada. It was formulated differently from the original brown cola, and the new colorless cola was 100% naturally flavored with no preservations and no caffeine. It did have a lighter taste than the original Pepsi.
According to Tom Pirko, who runs a beverage consulting company in Los Angeles called Bev Mark, figured that there are two reasons Pepsi decided to bring out this Crystal Pepsi product (Pepsi Product ‘Crystal Pepsi’ is Clear, 1992). The first reason was due to competition with Coca-Cola whereby this new idea was intended to obtain a great deal of attention from the market. PepsiCo has been head-to-head positioning with Coca-Cola for many years and thus, they were considering differentiation positioning to expand their business.
Another reason for the product innovation not to work was the same, that consumer has basic attachment with the normal black coloured Pepsi and consider it to be a part of their happiness and celebration. The age long association is not easy for any product innovation to overcome. The taste, the colour of the product was also not appreciated by the user and thus it was a huge failure for Pepsi.
Coke continuously out-stands Pepsi, even though they share a very similar taste and colour, however Coke should not be the drink that receives all the love and attention for what it offers. Despite their similar soda colour, the drinks actually contain some different ingredients, which produce a different taste, and affect the body differently. Furthermore, the way the companies markets their drinks makes a huge contribution to how successful their products will become. The major element for success however stems from their impact on society and how the companies utilize their social power to evolve. The two major soda companies are constantly head to head with one another, yet it is what they do that sets them apart.
Pepsi is a carbonated soda pop that is created & fabricated by Pepsico. Made & created in 1893 & presented as Brad's Drink, it was renamed as Pepsi-Cola on August 28, 1898, then to Pepsi in 1961, & in select ranges of North America, "Pepsi-Cola Made with Real Sugar" starting 2014. Pepsi was initially presented as "Brad's Drink" in New Bern, North Carolina, United States, in 1893 by Caleb Bradham, who made it at his drugstore where the beverage was sold. It was later marked Pepsi Cola, named after the digestive catalyst pepsin & kola nuts utilized as a part of the formula. The first formula additionally included sugar & vanilla. Bradham tried to make a wellspring drink that was engaging & would support in assimilation & help vitality (Tavis,
Pepsi had the great idea to use the general public in their commercials and show that Pepsi was preferred over Coke. ("Rock and... Wars"). This worked well, since the people in the commercials and the people watching at home were both included in the ‘general Public.’ ("Rock and... Wars"). Pepsi and Coke began using famous people in their commercials and advertisements. Coke and Pepsi began having blind taste tests to see which beverage is preferred. The blindfolding made it fair. People began worrying about their health and taking soda out of their diet. ("Rock and... Wars"). Due to this both Pepsi and Coke have been dropping in sales. ("Rock and... Wars"). To try and avoid competition the two brands try to use different consumers, sponsor different sports, and make different their logos. ("Rock and... Wars"). They also chose different colors for their packaging, and built different images for their brand. ("Rock and...
For a long time, the Coca-Cola company tried and tried to perfect the drink. The company finally
On May 8, 1886, pharmacist John Stith Pemberton stirred up fragrant caramel-coloured syrup in a three legged brass kettle. He carried a jug of his new formulation to the Jacobs's Pharmacy, Atlanta. On the following day, the new product debuted as a soda fountain drink for five cents a glass. By accident or by design, carbonated water was mixed with the syrup which has created the world's most popular drink.
In terms of promotional activities, the advertising and giving away of free offers and vacations by Coca cola and Basmati rice by Pepsi, the coca cola’s goal in connecting the youth to the market, the different promotional TV campaigns in India using of celebrities, and the Pepsi sponsorship of cricket and soccer sports. In terms of pricing policies, Pepsi got a quicker market share by their belligerent pricing policies and coca cola’s 15-25% price cut down in the market. In terms of distribution arrangement, the bottling and packaging of products for better distribution around
1975 heralded the Pepsi Challenge', a landmark marketing strategy, which convinced millions of consumers that the taste of Pepsi was superior to Coke. Simultaneously, Pepsi Light, with a distinctive lemon taste, was introduced as an alternative to traditional diet colas. In 1983 Coke launched aspartame/saccharin blend Diet Coke. In response in 1989 Pepsi-Cola introduced an exciting new flavor, Wild Cherry Pepsi. Thus Diet Pepsi's 'The Other Challenge' campaign was based around a 54-46% lead over Diet Coke in independently researched taste tests in Australia. It was only in 1996 that Pepsi unveiled a revolutionary 'blue' look worldwide 'to transform the image and attitude' of one of the world's best-known brands. 'Pepsi Blue represents a quantum leap into the future and redefines how the Cola Wars will be fought and won in the 21st Century.'
In 1886, something extraordinary took place in the hands of a curious pharmacist that changed and shaped not only America, but the also rest of the world forever. From this ordinary pharmacist, named Dr. John S. Pemberton, came a distinctly flavored syrup that was tested and retested several times. After taking it to the local pharmacy down the road in Atlanta, Georgia, he sold about nine servings a day (Pendergrast). Little did Dr. Pemberton know that his product would skyrocket to about ten billion gallons a day almost two hundred years later. As soon as Coca Cola began, it spread rapidly making what is considered today to be the greatest refreshment ever known to man ("Coca-Cola History").
The “Pepsi Challenge” was an example of the Pepsi presenting itself as a superior tasting product over Coke with blind taste tests as the proof. During the early 1990’s the bottler’s of Coke and Pepsi engaged in a lower price strategy in the grocery stores in order to compete with the store brands, this in turn had a negative impact on the profitability for the bottlers. Coke and Pepsi both were able to sustain profitability through continuous growth in Frito Lay and International channels. Finally by the later 1990’s the bottling companies realized the price wars were not doing any good just raising prices and dropped the price
Pepsi and Coca-Cola are both sodas, but they differ in terms of the satisfying flavors, the color and the graphic design that represents their two products, and then how Coke makes more money than Pepsi. With that said, you should have gotten the ideology of what we will go further in discussing about. Everybody loves these two very well-known sodas which can inject caffeine into you, which makes you all jittery in filling you up with an energetic energy. Alright, enough of this, let's go straight in-depth in talking about the two rivals throughout this paper of how Pepsi beats Coke in sales, but Coke is usually ahead when it comes to annual net income (Feigin) or how Pepsi is a sweeter brand compared to Coke, though Coke brand is more valuable
In my commercial LeBron James a Professional Basketball player is trying to get us the consumer to buy the product. He grabs our attention by saying “I wouldn’t tell you to drink sprite even if I was in a commercial for sprite”, While the guys in the commercial or trying to get him to say "Drink Sprite". The reason for this commercial is not to tell people what to do but give them the option to drink or try the soft drink. Sprite was introduced in the United States in 1961 by the Coca-Cola Company, with its colorless lemon and lime flavored, caffeine-free soft drink. Sprite was developed in West Germany in 1959 as Fanta Klare Zitrone which means (“Clear Lemon Fanta”) and introduced in the United States as Sprite. This soft drink was a response
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 artificial sweetener not yet approved by the Food and Drug Administration, it wasn't brought to market in the United States.
... it’s a buyer’s market, therefore instead on focus on push advertising and trying to compile prospective customers to buy their product, Pepsi is trying to make Pepsi a part of the consumers life so, whether consciously or unconsciously, if a customer goes out to buy soda the first thing that comes to his/her mind, is Pepsi. I find this especially intriguing, because as an aspiring entrepreneur I hope to one day market my products with the same if not better technics as Pepsi.
...e and Pepsi’s already established image as producers of premium product is key to discouraging other companies from entering the soft drink industry. However, as the market in the U.S has leveled off, they should continue to invest globally in marketing and advertising for further profit growth, which will in turn positively influence their well established brands to further increase soft drink sales and profits.