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Pepsi Blue

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

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Pepsi Blue

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  1. Pepsi Blue By: John Dehmardan

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

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

  4. PepsiCo • US Beverage sales rose by 7% - Volume growth: 25% - Price increases: 75% • International sales rose by 14% - Volume growth: 45% - Price increases: 55%

  5. 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

  6. 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

  7. Rivalry • 1980’s: image advertising -The choice of a new generation -Teenage target

  8. 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

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

  10. PepsiCo • Brand identity changes (7) • Old signs alongside new ones - Different interpretation by independent bottlers - Inconsistent presentation of the Pepsi brand to consumers

  11. 1898

  12. 1905

  13. 1908

  14. 1930

  15. 1940

  16. 1956

  17. 1962

  18. 1973

  19. 1991

  20. Brand Identity Lander Associates • Worldwide photographic audit of Pepsi’s brand presence -2000 photographs from 34 countries

  21. 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

  22. Brand Identity • Blue as a much stronger color than white - Consumers viewed it as modern and cool - Communicates refreshment - Exciting and dynamic

  23. 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

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

  25. 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

  26. Bahrain Test • New advertising slogan: “ New look. Same Great Taste,” • Television and print advertising executions during the test was sustained at previously planned levels

  27. 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 )

  28. 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

  29. 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

  30. 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

  31. 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”

  32. Global Roll out • Advertising (April 1996) to be seen by 300 million people in 20 countries in first four weeks • Television spots featuring celebrities

  33. 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”

  34. 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.

  35. 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

  36. 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

  37. Questions?

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