pepsi blue
TRANSCRIPT
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Pepsi Blue
By:John Dehmardan
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Pepsi Blue
Global launch of a new brand identity and logo
$500 million investment
Project Blue: Blue vs. Red
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PepsiCo
$30.4 billion in revenue Ranked 20 in the Fortune 500 Revenues
- 35% beverages
- 37% fast food restaurants
- 28% snack foods
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PepsiCo
US Beverage sales rose by 7%
- Volume growth: 25%
- Price increases: 75%
International sales rose by 14%
- Volume growth: 45%
- Price increases: 55%
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PepsiCo
Pepsi, Diet Pepsi, Pepsi Max
- 40% of US beverage sales
- 70% of international sales
International sales
- 29% of total beverage revenue
- 18% of beverage operating profits
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Rivalry
1930’s :Price oriented campaign
- Twice as much for a nickel 1970’s :Taste superiority
- Pepsi Challenge
- 20 million took the challenge
60% chose Pepsi over Coke
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Rivalry
1980’s: image advertising
-The choice of a new generation-Teenage target
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Rivalry
Pepsi
27% of total RV
23% of total VS
Advertising
- US: $500 M
- Int: $200 M
Coca-Cola 35% of total RV
30% of total VS
Advertising
- US: $1.2 B
- Int: $600 M
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Rivalry Coca-Cola: Broader and more traditional
positioning
- Reintroduce classic contour bottle Always Coca-Cola
- Sports event sponsorship
- Celebrity endorsements
Youth market
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PepsiCo
Brand identity changes (7)
Old signs alongside new ones
- Different interpretation by independent bottlers
- Inconsistent presentation of
the Pepsi brand to consumers
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1898
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1905
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1908
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1930
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1940
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1956
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1962
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1973
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1991
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Brand Identity
Lander Associates
Worldwide photographic audit of Pepsi’s brand presence
-2000 photographs from 34 countries
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Brand Identity
Inconsistencies and lack of integration No particular color except perhaps white Did not express the energy and core essence
of Pepsi
-Did not work well on the sides of trucks or vending machines
-Cans look like motor oil
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Brand Identity
Blue as a much stronger color than white
- Consumers viewed it as modern and cool
- Communicates refreshment
- Exciting and dynamic
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Design: Strengthen the Brand Identity
1- Develop a flexible design
2- Establish blue as Pepsi’s dominant color
3- Develop a mnemonic device
4- Create a modern, even futuristic, look and image to contrast with Coke’s traditional positioning
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New Design
Unitalicized logotype
- Added boldness and stature Reversing colors The ball became globe
- Showing only a quarter
Larger-than-life personality
Futuristic looking
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Bahrain Test
Project blue launched initially in Bahrain 12 week program Newly designed cans and bottles distributed
throughout the city Blue project implemented in one-half of the
city
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Bahrain Test
New advertising slogan: “ New look. Same Great Taste,”
Television and print advertising executions during the test was sustained at previously planned levels
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Bahrain Test
Tracking research was conducted before, during and after the test.
Measures of brand attitudes, sales volume and market share increased.
No change in taste: 70% Taste changed: 30% (70%: better )
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Why Bahrain?
Why Project blue launched initially in Bahrain?
1-Experimenting with blue backgrounds
2-Franchisee critical of PCI headquarters
3-Pepsi sales dominated Coke’s by 3 to1
4-Two separate islands enabled PCI to conduct a controlled field test
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Global Roll out Positive results persuaded PCI executives
that their enthusiasm for Project Blue is well-found
Recommendations : Project Blue should be launched along with a creative and expensive communications program to support the worldwide launch
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Global Roll out Recommendations : Blue be rolled out in
markets accounting for half of brand Pepsi’s international sales volume
20 billion cans and bottles reach store shelves by the end of the year
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Global Roll out
$500 million marketing program to support the worldwide launch
Systemwide conversion of bottles and cans, Coolers and vending machines, and trucks
“Change the Script”
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Global Roll out
Advertising (April 1996) to be seen by 300 million people in 20 countries in first four weeks
Television spots featuring celebrities
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Global Roll out
Public relations initiatives:
- Ten city tour of Europe and the Mideast by Concorde jet adorned by Pepsi’s new colors
- Sponsorship of the Russian Mir Space Station: “Even in Space- Pepsi is Changing the Script”
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Will It Proceed As Planned?
Some members impressed but concerned about the magnitude of the proposed communication campaign.
Others argued the sales and share trends vs. Coke gives Pepsi no choice. Big new idea is needed.
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Will It Proceed As Planned?
Concerns about Bahrain results
-slower roll out on a region-by-region basis
-launch blue in lead market in each region to motivate the other bottlers in the region to follow
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Will It Proceed As Planned?
Logistical nightmare: get everybody on board
US organization’s willingness: not-invented here syndrome
Situation with Latin America bottlers: significant capital investment
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Questions?