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Marketing concept of pepsi
Pepsi marketing strategy
Pepsi marketing strategy
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Why Crystal Pepsi and Others Failed
We live in a day and age where marketing and advertising is stronger then ever. It is essentially in our face every where we turn, from the clothes we wear to the music we listen to and even the device we use to listen to our music. Marketing and advertising touches our lives everyday without our really ever even noticing it. Marketing professionals have a difficult challenge before them in figuring out a way to create a public interest, and a want for their products if they are to become adopted. Various marketing communications tools provide the means to which they will best reach the public. In the early 1990’s marketing professionals for PepsiCo choose to heavily promote and advertise a new variation of their popular original Pepsi formula creating one of the largest craze’s for a soda variation in the last two decades.
April 13th 1992, PepsiCo introduced an exciting change to its popular Pepsi product in the test cities of Providence, Denver, and Dallas and called it Crystal Pepsi. This is believed by many to have been one of the best ideas that PepsiCo had ever came out with, as they simply removed any and all coloring from Pepsi, creating a healthier and visually stimulating product. During the 1980's, Madison Avenue advertisers created one of our society’s most aberrant spectacles yet, the pinnacle of decades of pop culture and advertising prowess, The Cola Wars. In our technological, media-driven, consumer-happy, and product-driven culture, selling and consuming soda has certainly become one of our biggest American pastimes. Coca-Cola and PepsiCo squared off for decades in various advertising coups trying to sell more soda to the already overly indulgent American public. A seemingly easy goal, but these companies have tried everything from using pop-stars, bold and daring challenges and most recently the chance to win a billion dollars on national television just for drinking their products. Throughout the 1990s, this trend continued. Among many new advertising campaigns, many soda companies tried introducing flashy new products that would catch as much media attention as possible. Crystal Pepsi sailed through the approval process. Focus groups loved the stuff, and test marketing was excellent. Crystal Pepsi went national in 1993 with a full scale media...
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...urprising to see Crystal Pepsi come back for a short while just so PepsiCo could watch the public reaction and practically let the variation sell itself just from all the hype.
Americans are influential, cogent beings that seem to love hype and drama more than most cultures. There will always be someone out there who will fight to no end to say a product stunk and failed miserably and there will always be the other guy who will defend the product, even 11 plus years after it was pulled off the shelves. The secret to marketing is to never stop changing, go after your target and create a want the public didn’t even know about. One the more popular reasons for why these variations seem to fail is the most obvious, taste. If the majority of consumers agree that the new variation tastes bad, then they will not try it again and be sure to tell all there friends and family how bad it tastes. The tools of influence have a huge role in determining whether a product will have any success in the now and the long run. Although Crystal Pepsi was written off as a huge failure, with millions spent in advertising, its legend lives on for many hard core Pepsi lovers.
By adding cotton to give off the appearance of a whipped cream topping and a wrap around coffee sleeve, the bottle was transformed. This design appealed to many of the consumers who wrote, “Looks good, I like the bottle and the cotton,” and “#1, it is cool looking, must buy.” But there was no detailed flavor or title specifically written on the bottle. This had a negative effect on the overall viewpoints of the consumers. Our flavor was supposed to be a maple apple soda, but many people believed that it was actually a latte, “You don’t put a latte in a bottle.” The flavor was obfuscated further with the name of the beverage, “I don’t like leaves in my drinks.” Some altogether just did not like the fact that the name of the soda was not on the label at all. This lack of detail could have been fixed by simply adding the name and the flavor on the sides of the label to make things much
Coca- Cola has always been popular with America and in the 1950s; it became the main soda to drink during the 1950s and also the golden age for the product. One glass of Coca- Cola was only five cents. The soda was a symbol of social status. If you wanted to be refreshed and satisfied, then you have to drink Coca- Cola. Celebrities, actors, athletes, workers, kids and even Santa Claus had to have Coca- Cola in their hand. With the boom of television in households, Coca-Cola became more popular because of the advertisements contain relaxing and being comfortable with the soda in their hand. It became so appealing that Time’s Magazine stated that, “It is simpler, sharper evidence than the Marshall Plan, or a voice ...
The soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten brands sold. Colas are the dominant flavor in the U.S carbonated soft drink industry; however, popularity for flavored soft drinks has grown in recent years. The changing demographics of the U.S population have been an important factor in the growing popularity of these flavored soft drinks. The possible impact of this factor will be addressed later in the case.
To summarize, Pepsi tries to create a new target audience which is adults. Compared to Coca-cola, Pepsi does it more fair and success to create a more divine atmosphere. In my point of view, this is a winning concept in the long run.
Brand Image / Loyalty: Coke and Pepsi have a long history of heavy advertising and this has earned them huge amount of...
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.'
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.
Since neither of the products created the measurable sales and market share increase Pepsi needed, PepsiCo International (PCI) executives conceived of a plan to create a new tagline and re-brand all existing Pepsi products, signage, advertising materials and in-store display units. The executives envisioned a simultaneous, global campaign that would create stronger brand equity and resonance in the consumer consciousness.
...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.
Abby Willow once said, “The average American adult consumes 11.7 pounds of chocolate every year- that's the weight of about 6 pairs of shoes!” With so much consumption of chocolate by Americans, it is crucial for the numerous brands to advertise their products in a manner that could potentially dominate their competition in sales. There are endless ways for a company to draw the attention of an audience in order to take over the competition of chocolate sales. Advertising is a key aspect as to how successful a brand may be when compared side-by-side to a similar product. While Snickers and Reese’s Peanut Butter Cups are similar, they are also different; the differences are significant because they demonstrate how some competitors choose to go above and beyond for their advertising while others opt to take a route that is of a more simplistic nature.
In order for PepsiCo to be successful in selling Pepsi Platinum, the company must research the marketing community. The best way to create a strategic marketing plan is to understand the target market in the beverage and sports drink business. PepsiCo must ask, “What is the demographic of this market, what are psychographics and behaviors of the specific market that PepsiCo, in regards of selling this brand, desires to reach?” Understanding our customer needs, and competitors offerings will help PepsiCo create a strategically integrated marketing plan. The principal to any successful marketing strategy is to understand the customers and their needs. The ability to satisfy customers' needs better than the competitors, will first be, that PepsiCo build customer loyalty and increase sales (Business Link, 2007). Marketing research uses many methods to obtain its results. PepsiCo will use external census data and marketing survey data collected by outside marketing research firms, as a method of understanding customer wants and needs. Computer-aided methodologies will also be used to collect data on the competitors of PepsiCo such as Coca Cola, Jones Soda, and Mo...
Competitive pricing is a factor, which the firm should keep in mind all the time. The scenario is very important because there can be civil disturbance, fall in sales due to inflation, or cross-border situations. As a result, Pepsi has to stay updated with all changes and policies in order to adapt.
Thanks to my fascination with PepsiCo and partly because this is an assignment, I went online and search for some of PepsiCo’s most successful and ongoing marketing campaigns and strategies. During my research I noticed several daring marketing strategies Pepsi employed throughout the years. For example, gaining the support of Michael Jackson in the 1980’s and latest gaining the endorsement of global pop star Beyoncé.
There are a variety of beverages available to us today with a wide range of differences, some are flavored, carbonated, low calorie, energy boosters, and just plain water. When it comes down to carbonated drinks there are two major rivalry soda companies dominating the market. Coca Cola and Pepsi are two well know cola distributors with very credible history, but the question still remains one is America’s favorite? With the ongoing competition between Coca-Cola and Pepsi, each company is incorporating new strategies for marketing and advertising there brands. When comparing an advertisement from each of the companies, we will review how they appeal to consumers.
Experimentation with the new market for carbonated beverages on the decline coke has done experiments in new flavors and healthier alternatives to try to stay competitive. As well as investing in “Keurig Green Mountain is a K-Cup maker but has a new Keurig Cold that can deliver Coca-Cola through the new system.” (Cooper, 2014)