Pepsi Blue Case Study

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Throughout the 1990s, PepsiCo launched new products and engineered a global re-branding campaign in order to grow product sales volume; reinvigorate their at standstill brand; and to close the increasingly large sales and market share distance between alone and its primary competitor, Coca-Cola. In 93, Pepsi jump-started its advertising efforts with the help of two brands to it is portfolio: Amazingly Pepsi and Pepsi Greatest extent. Crystal Pepsi, which was primarily offered in the us, failed to generate the company more than 2 percent volume reveal. Pepsi Maximum, which was released in the United Kingdom, proven more successful, nevertheless because one of its primary materials was an artificial sweetener not yet approved by the Food and Drug Operations, it had not been brought to industry in the United States.

As neither in the products came up with the measurable sales and business increase Pepsi needed, PepsiCo International (PCI) executives conceptualized of a want to create a fresh tagline and re-brand most existing Soft drink products, signage, advertising components and in-store display products. The professionals envisioned a simultaneous, global campaign that would create more powerful brand value and resonance in the customer consciousness.

Executives were designated four major tasks: to evaluate the effectiveness of Pepsi's logo; to assign a signature color to Pepsi products; to formulate a mnemonic device for advertising and company recognition; and also to further distinguish Pepsi items from Coca-Cola products by causing Pepsi products' design more modern and attractive to its major audience (teenagers).


The executives' option was Soft drink Blue, which will consisted of a futuristically-designed logo design for cans, bottles, snack machines, vans, etc .; a marketing campaign gleaning borrowed interest from superstar endorsers; and unique, high-exposure sports and event sponsorships to position the rand name among adolescent consumers.

Pepsi Blue was first test-marketed in Bahrain for three reasons: initially, the majority of residents drank Pepsi; second, local marketers and bottlers experienced already begun re-evaluating the effectiveness of the company's white-colored logo (which didn't work effectively in their market); and third, the city was obviously a small test out market with a tightly handled sample populace. The Pepsi Blue company logo, tagline and new marketing materials were rolled out in half the market and its results were highly good. Purchasers loved the new logo design and the majority assumed that the the labels had increased and the flavor remained precisely the same. For those who believed that both the taste and packaging had been different, the majority enjoyed the " new" taste.


Making use of the successful Bahrain test as an push for a global roll-out, PCI planned for execution in other markets. But , while Pepsi Blue assured the brand re-invigoration and more ideal positioning it needed among its key consumer foundation, the task also brought concerns with it. Primary among them is that Bahrain could be an anomaly: because the brand had been dominant through this market, consumers would be more open to a brand new look and it didn't affect their very own buying habits. Some executives then suggested a regional (rather than global) roll-out that either happened in every markets concurrently or started with a business lead market and grew. Latina American bottlers worried that because they'd recently used significant capital in their infrastructure, they didn't want to afford to take a position again in new ads and re-designed bottles. They will argued that they couldn't recommend Pepsi Blue until additional funds could be raised, therefore thwarting the PCI executives' goal of the global roll-out. Still different executives believed a sychronizeds global marketing campaign would be logistically impossible and the company should spend money on costly sponsorships...

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