Pepsi's Global Strategy

Mike Doyle, creative director at Arnell Group, explains that there was a great depth of exploration and research that was conducted before even beginning to formulate a new Pepsi packaging strategy. PepsiCo and Arnell Group traveled extensively to emerging markets to find key consumer product drivers for youth cultures and to learn how the Pepsi brand was perceived in different countries.

They found, somewhat surprisingly, that there were very few differences around the world in how consumers felt about Pepsi's fun, effervescent brand image. "The brand equity is really consistent," says James Miller, marketing director, Pepsi-Cola North America. They also found many consistencies in youth cultures around the world in how today's youth is preoccupied with newness, discovery, and personalization of their possessions. Miller describes the design campaign's goal as "sustainable discovery," where the consumer audience is constantly intrigued and engaged.

Designers at Arnell Group created the dozens of new and vibrant designs with only a handful of blue and gray shades. Each design tells a story of sorts and each can design has a unique website address on the side of the can. The first one on the "Your Pepsi" can allows web users to design a digital billboard that will appear in Times Square, and one coming shortly will allow users to mix their own music online.

"We redefined packaging as media in the marketplace for Pepsi," says Doyle. "It speaks to youth in their language." Doyle believes that the designs succeed because they are able to capture the audience's mind space. "The designs are reflecting back to the culture instead of talking to the culture or imposing on it.

Pepsi actually asked their loyal consumers what brand elements would have to remain so that they would be intuitively reassured that their favorite drinks were not changing and the brand they trusted was still essentially the same. Their answer was direct and consistent. Pepsi-lovers needed to see three elements for sure—the Pepsi "globe," the iconic Pepsi blue, and the familiar tilted Pepsi capital letters.

Arnell Group updated the primary logo substantially and cleverly without really redesigning its key elements. The most recent logo design had the Pepsi wordmark on top of and slightly overlapping the iconic Pepsi red-white-and-blue "globe." On the previous can design, the wordmark wrapped halfway around the can, and the globe was off-center. The new cans and bottles have un-bundled the word and globe, making the newly centered globe more of the hero, and the smaller Pepsi wordmark less prominent.

Television ad campaigns are reinforcing the globe-centric approach by featuring a boulder-sized Pepsi globe in various settings careening to and fro like a pinball. In the ads and on the front of most of the new packages is the reassuring tag line: "Same Pepsi inside, new look outside." Miller explains that it is customary and important to reassure consumers for at least six months in situations like this. Miller also sees today's youth as demanding authenticity from the products they come into contact with in their day-to-day experiences. The new Pepsi design strategy is versatile because it can be authentic and stay current, and it could also make introducing special seasonal or regional designs more intriguing and less disruptive. "This is a new way of using packaging as media," explains Miller. "The consumer is looking for more variety and expecting more from their brands. They want to have a dialogue with their favorite brands."

Discussion Questions

Your TMA is divided into four questions. Answer each question in an essay form.

Question1: All companies must continually conduct research to understand the needs and priorities of their market segments. Consumer needs are shaped by the environment, culture, education, and life experiences.

a. Define Marketing concept and explain briefly the three elements of the marketing strategic framework

b. Show how PEPSI is applying the Marketing concept.

Word count: 300 words

Question2: a. Define the communication concept, list its 5 basic components and elaborate on the MEDIUM concept

b. Discuss the following statement revealed by Miller : "This is a new way of using packaging as media"

Word count: 300 words

Question3: Brand is the "name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."

a- What is Brand Personality?

b- Discuss PEPSI’s Brand personality

Word count: 250 words

Question4: A total product is much more than a physical product. If a product is involved, it probably needs packaging. Further, physical products and services probably should be branched to make sure that they are clearly identifiable and that satisfied customers will know what to ask for next time.

What is your favorite package designed by PEPSI? Describe it and explain why.

Word count: 200 words