pepsi lipton brisk - harvard business review case

21
CASE REVIEW PEPSI-LIPTON BRISK ABDOU FAHME KHRISTON NIDHI NISHMA ZION

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Page 1: Pepsi Lipton Brisk - Harvard Business Review Case

CASE REVIEW

PEPSI-LIPTON BRISK

ABDOU

FAHME

KHRISTON

NIDHI

NISHMA

ZION

Page 2: Pepsi Lipton Brisk - Harvard Business Review Case

HOW ABOUT A VIDEO?

Source: http://www.youtube.com/watch?v=1DHo8fYFsd0&feature=relmfu

Page 3: Pepsi Lipton Brisk - Harvard Business Review Case

CASE OVERVIEW • Mary Bernard (VP at PepsiCo and GM for PLP) &

Marisol Tamaro (Brand Building Director of Brisk)

• Re-launch Brisk Iced Tea

• Sales rising and 10% market share

• Purchased ad space for Brisk at the Super Bowl

• Carry momentum in the following months

• TV advertising or Viral advertising through Social

Media

• No dominant company had top market share

• $6 million yearly budget for advertising Brisk

Page 4: Pepsi Lipton Brisk - Harvard Business Review Case

SWOT ANALYSIS STRENGTH

• Global presence

• Resource availability

• Distribution channels

• Reputed brand image

WEAKNESS

• Priced higher than competitor

• Lipton – Cannibalization

• Weak social media presence

OPPORTUNITY

• Tea industry growing globally

• Consumer preference for RTD

• Health awareness on the rise

THREATS

• Competition

• Rising health concerns

• Alternatives to RTD

• Economic restrictions

Page 5: Pepsi Lipton Brisk - Harvard Business Review Case

5C’s CUSTOMER

• Brisk brand natural personality is

male

• Target market is predominantly

male

• Millennial and Hispanics

• Reconnect with 90’s

advertisements

• Pull in Arizona RTD tea drinkers

COMPANY • Pepsi – Lipton joint partnership

(PLP)

• Market and distribute ready to

drink tea in North America

• PepsiCo: health conscious

positioning

• Lipton: bottling and distribution

platforms

• Position product as edgy, cool

and as an energy drink

Page 6: Pepsi Lipton Brisk - Harvard Business Review Case

5C’s Continued … COLLABORATORS

• Division of Pepsi Americas holding,

a $10B strong conglomerate

• Large worldwide and extensive

bottling distribution

• Consumer goods multinational,

with over 100K employees

worldwide

CONTEXT

• Boom in the RTD Tea Industry

(8% growth to $2.2B)

• Market Segment with no dominant

brand

• Increase in Health and Wellness

awareness

• Economic downturn has affected

Lipton Ice Tea sales since 2008

Page 7: Pepsi Lipton Brisk - Harvard Business Review Case

COMPETITORS

9,057

6,194

237,000

926,000

26,000

3,983

3,728

279

Source: Exhibit 5

Page 8: Pepsi Lipton Brisk - Harvard Business Review Case

COMPETITORS

MARKET SHARE

28%

15%

9% 8%

5%

35%

Arizona

Lipton

Brisk

Snapple

Nestea

Others

Source: Exhibit 1

(-0.1%)

(-2.5%)

(-0.1%)

(1.7%)

Page 9: Pepsi Lipton Brisk - Harvard Business Review Case

SEGMENTATION

• YOUNG ADULTS

• ON THE GO LIFESTYLE

• MALES

• NEED FOR A EDGY, COOL &

ENERGETIC BRAND ASSOCIATION

Page 10: Pepsi Lipton Brisk - Harvard Business Review Case

TARGET MARKET MILLENNIALS HISPANIC MALES

20% of the male demographic Technology savvy & intelligent

Page 11: Pepsi Lipton Brisk - Harvard Business Review Case

POSITIONING

EDGY, COOL AND GIVES YOU ENERGY

Page 12: Pepsi Lipton Brisk - Harvard Business Review Case

POSITIONING 4P’s

BRISK ICE TEA - Product

BRISK ICE TEA - Brand

PRODUCT: RTD Ice Tea

PRODUCT : Awareness & Loyalty

PRICE: 99 cents per 500ml can

PRICE: Free media space, word of mouth

PLACE: Everywhere soft drinks are sold

PLACE: Social Media, Special Events

PROMOTION: Contests, coupons, etc.

PROMOTION: Social Media, Special Events

Page 13: Pepsi Lipton Brisk - Harvard Business Review Case

OBJECTIVES RE-LAUNCH BRISK

ADVERTISING SPENDING

GET ARIZONA DRINKERS TO MOVE TO BRISK

STRONG SOCIAL MEDIA PRESENCE

Page 14: Pepsi Lipton Brisk - Harvard Business Review Case

OPTIONS

TELEVISION - Advertising

SOCIAL MEDIA – Viral Marketing

OR

Page 15: Pepsi Lipton Brisk - Harvard Business Review Case

OPTION 1 - TV

. Mass Reach

. Target Specific

PROS . Expensive

. Commercial avoidance

. Difficult to alter

. DVR

CONS

Page 16: Pepsi Lipton Brisk - Harvard Business Review Case

OPTION 2 – VIRAL MARKETING

PROS CONS

• COST EFFECTIVE

• HIGHLY CUSTOMIZABLE

• WORD OF MOUTH

• BUZZ

• LOW COST = HIGHER PROFITS

• SPAM THREATS

• LOW SUCCESS RATE

• EASILY IMITATED

Page 17: Pepsi Lipton Brisk - Harvard Business Review Case

OPTION 2 – SOCIAL MEDIA

CLIENTS

• Fully integrated one-stop shop for creative ideas, production, promotion and distribution

• In-house production studio

• Creative teams experienced in 2D & 3D

• Digital and social media experts

• Created ten of the weekly #1 most viewed brand videos on YouTube

• Garnered 3.5 million views on average per campaign

Page 18: Pepsi Lipton Brisk - Harvard Business Review Case

OPTION 2 - EXPLAINED

“That’s Brisk, Baby”: Rebirth

The Brisk Brothers

Creative Characters

“Now That’s Brisk”

Page 19: Pepsi Lipton Brisk - Harvard Business Review Case

RECOMMENDATIONS • EXHIBIT 8

Page 20: Pepsi Lipton Brisk - Harvard Business Review Case

RECOMMENDATIONS • EXHIBIT 10

Page 21: Pepsi Lipton Brisk - Harvard Business Review Case

RECOMMENDATIONS

“That’s Brisk, Baby”: Rebirth