Question 2 Despite knowing the negative effects Pepsi would have on their long-term health, many people enjoy drinking it to quench their thirst because the beverage is refreshing and tasty. Therefore, according to the societal classification of products, Pepsi is a pleasing product because it is low on long-term consumer benefit but high on the immediate satisfaction a consumer gets from having it.
PepsiCo is well aware of the growing trend towards healthy-eating and fitness; more and more people are avoiding putting high-sugar, high-salt, high-fat, and generally unhealthy food items in their bodies. This was a challenge for the company considering it was recognized for selling high-sugar soft drinks. To address this challenge, PepsiCo introduced several new products to the market such as Tropicana, Quaker, Aquafina, Gatorade, and Naked Juice which are evidently lower in calories and sugar. Apart from that, PepsiCo began promoting healthy lifestyles and physical activity by partnering with organizations like the Healthy Weight Commitment Foundation, GENYOUth and Fuel Up to Play 60, the Asian Football Development Project, and Sports Sponsorship. PepsiCo even has several sections on its website which are dedicated to showcasing healthier products with nutritional information about each one, and fitness programs it is participating in. PepsiCo has made smart moves in addressing the negative association consumers have with soft drinks. The company has used this challenge to not only create new and better products, but also shine a light on the importance of health and fitness. Question 3: With the Refresh campaign PepsiCo took a whole new route as it departed from promoting the same messages using the same promotional platforms. The new message they wanted to convey through this campaign has two aspects to it: (1) It was centered around the theme of social responsibility, and (2) the message was going to be delivered to consumers through an aggressive use of social media ( Kotler, Armstrong, Trifts, & Cunningham, 2014).
After reading the company case it is understood that PepsiCo initially wanted to create awareness about its initiative which encouraged making the world a better place. The company used social media platforms and spot ads to promote its refresheverything.com website and make people aware of the fact that they could submit their noble ideas on the website to receive a grant from PepsiCo. Once the market had become aware of the Refresh project, PepsiCo began announcing all the different projects that were being funded through this initiative which created knowledge about the campaign and brand in the minds of buyers. The company also increased a liking and preference for the campaign by getting celebrity endorsers like Demi Moore, Mark Sanchez, and Jeff Gordon to apply for grants and act as spokespersons for it ( Kotler, Armstrong, Trifts, & Cunningham, 2014). Most importantly, PepsiCo capitalized on this campaign by updating the graphics on its cans and bottles to provide more information on the initiative at the point-of-purchase. The company even partnered with Foursquare, a network
- Spring '15
- Marketing, Soft drink, Pepsi Refresh