16 Feb 2009

Update on Pepsi rebranding effort

Raj Bhatt

I had blogged in late November about Pepsi’s rebranding effort (click here). I had said at that time:

” I think these are bold moves that will revitalize the CSD market as well as position Pepsi favorably in the non-carbonated beverages market.

Some of the products launched by Pepsi recently are very notable (Diet Pepsi Max, flavored AMP variants). As a traditional Diet Coke fan, I was surprisingly attracted to the taste of Diet Pepsi Max. I personally witnessed a free sample promotion for Diet Pepsi Max outside Grand Central station in NYC in mid-October and the reviews appeared good. Pepsi has opened up a new segment in the CSD market by adding ginseng to cola. This will attract consumers who want a rush of energy with few calories at a price point below energy drinks.”

Pepsi launched a new website called “Refresh Everything“. Its Superbowl ad and the theme song also carried the same theme. Compete.com’s PRO Daily Reach report, which tracks online visitors based on their panel, has reported that the Pepsi website generated significant web traffic in January (click here).

Pepsi and Coca Cola have released their first quarterly results after the rebranding was launched. Pepsi Americas Beverages (click here) reported a 6% decline in volume, a 10% decline in sales and a 16% decline in latest quarter division core profit. Meanwhile The Coca Cola Company (click here) reported only a 3% decline in volume in North America, attributing its relative CSD outperformance to its ‘three-cola’ strategy and the success of Coca Cola Zero.

Does this mean that Pepsi’s rebranding has gone off to a bad start? Not really. The newly branded products began shipping at the end of the quarter. The true impact of the branding should be evident in this current quarter.


Pepsi, rebranding, refresh everything


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>