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.
The reason for the popular debate between Coke and Pepsi originates from their similar taste and colour; however there are some ingredients that separate them when contributing to your health. When comparing the original Pepsi and Coke side by side, Pepsi contains four more grams of sugar in forms of fructose, corn syrup
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
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.
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.
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,
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.'
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...
Pepsi Cola Marketing Strategy PEPSI COLA For Pepsi Cola Ltd, marketing opportunity analysis is a continual and ongoing process. Pepsi have used the new product strategy to realise their ambitions to both defend their current market position, and reinstate their position as a product innovator. Pepsi wishes to create a clear cola that is 100% natural, low in sodium, caffeine-free, and still maintains the flavour of its original cola. They will call it Pepsi Au Naturel.
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.
...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.
In 1893, pharmacist Caleb Bradham developed ‘Brads Drink’, a formula designed to aid in digestion. After strong interest from consumers in his pharmacy, Brad renamed the drink Pepsi-Cola in 1898 and purchased the trademark ‘Pep Cola’ for $100. The origins of Pepsi are very similar to that of Lucozade, which was also first produced for medicinal purposes. Although $100 does not appear much, that amount of money
... 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.
Pepsi was introduced in 1893 by Caleb Bradham as “Brads Drink” which then was renamed to “Pepsi Cola” in 1898. There wasn’t many options for advertising in this era due television not being introduced into households till the late 1900’s. One of the first Pepsi Cola advertisements was a black and while flyer that had a few characters laughing and read “Whoope!!! Zoom!! Drink Pepsi-Cola” at an advertisement from Pepsi, the have bright blue, red, and white colors that pop and are eye catching. Comparing this ad with a current ad and modern technology, you can see that Pepsi’s marketing and advertising techniques have come a long way. Reviewing a recent Pepsi advertisement, you can see that they have made groundbreaking changes to their branding techniques. First I will I will note that their choices in colors (red, blue, and white) for their brand are not only eye popping, but in a way symbolize the colors of America. I am not sure if this was their intent but it sure does standout. Next, there slogan in the ad states “Help Kick Off The Pepsi Super Bowl Halftime Show”, this ad targets a very large group people because its directly relating to one of the biggest sports event which is Super
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 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