pepsi lipton brisk - harvard business review case
TRANSCRIPT
CASE REVIEW
PEPSI-LIPTON BRISK
ABDOU
FAHME
KHRISTON
NIDHI
NISHMA
ZION
HOW ABOUT A VIDEO?
Source: http://www.youtube.com/watch?v=1DHo8fYFsd0&feature=relmfu
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
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
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
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
COMPETITORS
9,057
6,194
237,000
926,000
26,000
3,983
3,728
279
Source: Exhibit 5
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%)
SEGMENTATION
• YOUNG ADULTS
• ON THE GO LIFESTYLE
• MALES
• NEED FOR A EDGY, COOL &
ENERGETIC BRAND ASSOCIATION
TARGET MARKET MILLENNIALS HISPANIC MALES
20% of the male demographic Technology savvy & intelligent
POSITIONING
EDGY, COOL AND GIVES YOU ENERGY
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
OBJECTIVES RE-LAUNCH BRISK
ADVERTISING SPENDING
GET ARIZONA DRINKERS TO MOVE TO BRISK
STRONG SOCIAL MEDIA PRESENCE
OPTIONS
TELEVISION - Advertising
SOCIAL MEDIA – Viral Marketing
OR
OPTION 1 - TV
. Mass Reach
. Target Specific
PROS . Expensive
. Commercial avoidance
. Difficult to alter
. DVR
CONS
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
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
OPTION 2 - EXPLAINED
“That’s Brisk, Baby”: Rebirth
The Brisk Brothers
Creative Characters
“Now That’s Brisk”
RECOMMENDATIONS • EXHIBIT 8
RECOMMENDATIONS • EXHIBIT 10
RECOMMENDATIONS
“That’s Brisk, Baby”: Rebirth