Pepsi Refresh Project
Candidate no: 045751
‘NEW YORK (AdAge.com) -- Pepsi 's Refresh Project, a first-of-its-kind experiment in social media’
"You 're not going to fix this with a new logo or can or graphics, or ad campaign," he said. "This requires a major, comprehensive approach to the category and a refocusing to optimally capture the value of the brand at every beverage occasion, rather than have the discourse be ... how much volume can we pump out into the marketplace," said Mr. Laboy, PepsiCo Executive interview (AdAge.com)
The social orientation campaign launched by PepsiCo in USA using the technique of crowdsourcing marked as a highly risky shift in the paradigm from taping billions into digital advertising to smart-social-social initiative. The launch of campaign followed with a rush of ideas reaching up to to its limits in the first week itself out of which 32 ideas were voted ideal and was funded with millions of dollars. A big multi-national powerhouse brand stepped completely out of the cap of traditional marketing but made a few considerations that went massively wrong. Within few months of the campaign, PepsiCo’s market share went down to the third position questioning their marketing strategy. The campaign was ineffective in attracting stakeholder’s interest or optimising business and customers. The two methods of measuring impact of PR: i) social initiative impact on the country, ii) Impact of PRP as a company (measured through marketing, customer perception & sales).
The major flaws behind this method of crowdsourcing was:
Numerous social and environmental causes being funded at once
Scattered geographical setting resulted in less impact on individual causes (345 cities across 45 states)
Due to numerous programs being supported, the message was not communicated with the audience/customers in order to create a brand stand
Lost the connect of its
‘NEW YORK (AdAge.com) -- Pepsi 's Refresh Project, a first-of-its-kind experiment in social media’
"You 're not going to fix this with a new logo or can or graphics, or ad campaign," he said. "This requires a major, comprehensive approach to the category and a refocusing to optimally capture the value of the brand at every beverage occasion, rather than have the discourse be ... how much volume can we pump out into the marketplace," said Mr. Laboy, PepsiCo Executive interview (AdAge.com)
The social orientation campaign launched by PepsiCo in USA using the technique of crowdsourcing marked as a highly risky shift in the paradigm from taping billions into digital advertising to smart-social-social initiative. The launch of campaign followed with a rush of ideas reaching up to to its limits in the first week itself out of which 32 ideas were voted ideal and was funded with millions of dollars. A big multi-national powerhouse brand stepped completely out of the cap of traditional marketing but made a few considerations that went massively wrong. Within few months of the campaign, PepsiCo’s market share went down to the third position questioning their marketing strategy. The campaign was ineffective in attracting stakeholder’s interest or optimising business and customers. The two methods of measuring impact of PR: i) social initiative impact on the country, ii) Impact of PRP as a company (measured through marketing, customer perception & sales).
The major flaws behind this method of crowdsourcing was:
Numerous social and environmental causes being funded at once
Scattered geographical setting resulted in less impact on individual causes (345 cities across 45 states)
Due to numerous programs being supported, the message was not communicated with the audience/customers in order to create a brand stand
Lost the connect of its
References: 1. Zmuda, N. (2010). Pass or Fail, Pepsi 's Refresh Will Be Case for Marketing 2 textbooks/141973/ [Accessed 22 Dec. 2014]. 2. Kotler, P and G Armstrong (2012) Principles of Marketing, Prentice Hall, 10th Edition, pp.70-79 3. Financials.morningstar.com, (2014). Growth, Profitability, and Financial Ratios for PepsiCo Inc (PEP) from Morningstar.com 4. Kotler, P and G Armstrong (2012) Principles of Marketing, Prentice Hall, 10th Edition, pp.239-251 5. Moore, K. and Pareek, N. (2006). the basics. [S.l.]: Routledge, 193-200 6 Dec. 2014]. 7. Bythe, J. (2001). Essentials of Marketing. 2nd ed. Essex: Pearson Education Limited, pp.59-67. 8. Markets.ft.com, (2014). PepsiCo Inc, PEP:NYQ forecasts - FT.com. [Accessed 22 Dec. 2014]. 9. Anon, (2014). [online] Available at: http://www.beverage- digest.com/pdf/top-10_2011.pdf [Accessed 22 Dec. 2014]. 10. Howe.J, (2006). The rise of Crowdsourcing. Wired magazine.