Pepsi Blue

By: John Dehmardan

Pepsi Blue
Global

launch of a new brand identity and logo $500 million investment Project Blue: Blue vs. Red

PepsiCo

$30.4 billion in revenue Ranked 20 in the Fortune 500 Revenues - 35% beverages - 37% fast food restaurants - 28% snack foods

PepsiCo
US

Beverage sales rose by 7% - Volume growth: 25% - Price increases: 75% International sales rose by 14% - Volume growth: 45% - Price increases: 55%

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

Rivalry
1930s

:Price oriented campaign - Twice as much for a nickel 1970s :Taste superiority - Pepsi Challenge - 20 million took the challenge 60% chose Pepsi over Coke

Rivalry
1980s:

image advertising -The choice of a new generation -Teenage target

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

Rivalry

Coca-Cola: Broader and more traditional positioning - Reintroduce classic contour bottle Always Coca-Cola - Sports event sponsorship - Celebrity endorsements Youth market

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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1991

Brand Identity
Lander Associates

Worldwide photographic audit of Pepsis brand presence -2000 photographs from 34 countries

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

Brand Identity

Blue as a much stronger color than white - Consumers viewed it as modern and cool - Communicates refreshment - Exciting and dynamic

Design: Strengthen the Brand Identity

1- Develop a flexible design 2- Establish blue as Pepsis dominant color 3- Develop a mnemonic device 4- Create a modern, even futuristic, look and image to contrast with Cokes traditional positioning

New Design

Unitalicized logotype - Added boldness and stature Reversing colors The ball became globe - Showing only a quarter Larger-than-life personality Futuristic looking

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

Bahrain Test

New advertising slogan: New look. Same Great Taste, Television and print advertising executions during the test was sustained at previously planned levels

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 )

Why Bahrain?
Why Project blue launched initially in Bahrain? 1-Experimenting with blue backgrounds 2-Franchisee critical of PCI headquarters 3-Pepsi sales dominated Cokes by 3 to1 4-Two separate islands enabled PCI to conduct a controlled field test

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

Global Roll out

Recommendations : Blue be rolled out in markets accounting for half of brand Pepsis international sales volume 20 billion cans and bottles reach store shelves by the end of the year

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

Global Roll out

Advertising (April 1996) to be seen by 300 million people in 20 countries in first four weeks Television spots featuring celebrities

Global Roll out

Public relations initiatives: - Ten city tour of Europe and the Mideast by Concorde jet adorned by Pepsis new colors

- Sponsorship of the Russian Mir Space Station: Even in Space- Pepsi is Changing the Script

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.

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

Will It Proceed As Planned?

Logistical nightmare: get everybody on board US organizations willingness: not-invented here syndrome Situation with Latin America bottlers: significant capital investment

Questions?