Chloe Barteau, Erica Cheung, Deanna Shiverick,

Devin Sidi, Halle Speregen

Agenda
❏ Background
❏ Goals of PRP
❏ Results of the Campaign
❏ SWOT Analysis
❏ External Analysis
❏ Competitors
❏ Key Issues with the Campaign
❏ Solutions
❏ Recommendation
❏ Implementation
❏ Specific Questions
❏ Updated Development
Company Background
❏ 1893: Developed by Caleb Bradham as Brad’s Drink a hand-mixed carbonated
creation
❏ 1898: Renamed Pepsi-Cola → Later renamed again in 1961 as Pepsi
❏ 1936: Rise of Pepsi took off during Great Depression, offering 12oz. for a nickel
❏ “Pepsi-Cola Hits The Spot” jingle on radio, motion pictures, and television
❏ 1940s: Niche market of African Americans, recognizing that they were untapped
segment by white-owned manufacturers
❏ Pepsi in Films
❏ Back to the Future II
❏ Home Alone
❏ Wayne’s World
❏ Fight Club
❏ World War Z
Marketing History
❏ 1960s: “The Pepsi Generation”
❏ Ran award winning advertising campaigns
❏ 1970s: “The Pepsi Challenge”
❏ Blind taste tests showing that people preferred Pepsi to Coca-Cola
❏ Energized Pepsi sales and shot Pepsi to the #1 slot for best-selling soft drink
❏ 1980s: “The Choice of a New Generation”
❏ Used Pop-culture as a marketing tactic (Michael Jackson)
❏ 1990s: “GeneratioNext”
❏ Reinvigorated the message for a new generation of consumers
❏ Used influential music artists such as David Bowie, Faith Hill, Shakira, Britney Spears
❏ 2010: “The Pepsi Refresh Project”
❏ Planned to give away $20 million in the US to fund ideas, large and small, that would create
a change in communities
Goals of the Pepsi Refresh Project
❏ Raise awareness in the campaign itself, along with Pepsi as a company
❏ Increase brand engagement and brand equity
❏ Position Pepsi to be a forward thinking company focusing on creating a positive
change for communities
❏ Generate buzz to support the brand’s goals
❏ Encourage consumers to visit the RefreshEverything.com website to register
and submit their ideas
Results of the Campaign
❏ Forbes declared the project as one of the Top 5 Best Social Media Campaigns of
All Time
❏ Became one of the most innovative cause marketing campaigns
❏ 6.5 million unique visitors registered and more than 87 million votes casted on
www.RefreshEverything.com
❏ Affected over 1.4 million people in the US
❏ Directed over $23 million to fund 760 ideas
❏ Has reached:
❏ 152 schools
❏ 74 parks and playgrounds
❏ 26 children’s homes, shelters, and affordable housing
 SWOT Analysis
Strengths
❏ High awareness, high engagement
❏ Strong marketing resources
❏ Internet presence
❏ First mover advantage
❏ Strong distribution channels
Opportunities
❏ Product expansion
❏ International expansion
❏ Community involvement
❏ Gave people a sense of importance
Weaknesses
❏ Targeting only younger demographic by employing
celebrity endorsements
❏ Attracted organizations with agendas rather than
individuals with ideas
❏ Campaign didn’t directly correlate to the product
❏ Coca-Cola had a similar campaign at the same time
Threats
❏ Focus on health initiatives
❏ High competition--Coca-Cola mainly
❏ Changes in consumer tastes
 Threat of New
Entrants

Medium

Porter’s 5 Forces Power of Suppliers Competitive Power of Buyers

Rivalry
Low High VestibulumMedium
congue

Threat of
Substitutes

High
 Competitors: Coca-Cola
Advantages: Disadvantages:
❏ #5 on Forbes Most Valuable ❏ Mainly a beverage company
Brands List ❏ 2017 Net Income 1.18 B
❏ Owns many healthy beverage
choices
❏ Net profit margins almost
double Pepsi’s
❏ History of partnership for
social impact
 Competitors: Dr. Pepper Snapple Group
Advantages: Disadvantages:
❏ Offers a variety of non-soda ❏ Does not offer any food
beverages products
❏ In-house operations ❏ 2017 Net Income 1.08 B
❏ Merging with Keurig Green
Mountain to become Keurig
Dr Pepper by mid-2018
 Competitors: Red Bull
Advantages: Disadvantages:
❏ Many people find it tastes ❏ #70 on Forbes World’s Most
better than coffee Valuable Brands list
❏ Has more caffeine than soda ❏ Less healthy than soda
❏ Is a cool brand because of its ❏ Less caffeine than coffee
relation to sports and major
athletes
 Key Issues with the
Campaign
❏ Campaign did not connect back to the product, impeding a drive in sales
❏ Caused negative impact on revenue and market share
❏ As campaign was running, Pepsi was consistently losing market share, falling
behind Coke and Diet Coke
❏ No standard to measure success of campaign
❏ Pepsi was not able to vet many of the non-profit organizations, resulting in
fraud
❏ Many non-profits wasted resources due to the pressure to garner votes, causing
them to withdraw
❏ Supporting organizations nationwide caused less concentrated results, giving
the appearance of a smaller impact
Possible Solutions
Discontinue Pepsi Refresh ● Redirect budget back to advertising
01 Project ● More effective marketing alternatives

● Rather than focusing on the entire country

02 Invest in large popular cause ● Areas such as environment, underprivileged
communities, children, animals, etc.

● Eliminate voting process

03 Home Video Creation
● Preserves idea engagement with community

● Requirement of proof of purchase using

04 Code for submission of idea
codes under bottle caps
Solution #1: Discontinue the project and redirect
budget to advertising again

Advantages: Disadvantages:
❏ Advertising will boost sales ❏ Must explain to the consumer why
❏ Restores Pepsi’s credibility of being the project has been discontinued
genuine with cause marketing
❏ Legitimacy of project winners will
not be question
Solution #2: Invest in a large popular cause rather
than many causes around the country

Advantages:
❏ Will cause Pepsi to create a large
impact in a few communities
❏ Ability to focus on specific segment
and strengthen support in cause
❏ May seem more genuine and
prospect of long term partnership
Disadvantages:
❏ Reduces consumer involvement
from the project
❏ Less reach than the Refresh
project
❏ Traditional means = slower
growth and recognition
Solution #3: Home Video Creation

Advantages:
❏ Will boost sales due to product
placement
❏ More user generated content,
spread through word of mouth
❏ Will increase social media
involvement by eliminating website
sign up
Disadvantages:
❏ Eliminates bottle cap code
redemption/extra votes
❏ Pepsi picks winners, may seem
unfair
Solution #4: Code for Submission
Advantages:
❏ Method boosts sales while also
focusing on campaign’s mission
❏ Code may be continuously utilized
in campaign
❏ ie. votes later on, extra votes, etc.
Disadvantages:
❏ Consumers might believe
campaign is disingenuous
❏ Creates a barrier for consumers
to submit ideas
Final Recommendation

Home Video Code With Voting Online

Purchase Revamped Pepsi
Submissions
Project
Implementatio
n
Phase 1 Phase 2 Phase 3

❏ Video ❏ Cap voting and ❏ Designated prize

❏ Pepsi picks top 3 engagement money for first,
second and third
Should the Pepsi brand team continue to fund the Pepsi Refresh Project in
2011?
❏ Pepsi should keep this project (a revamped version) in order to strengthen its
brand position in the market.
❏ The program has effectively responded to the changing needs of consumers and
their methods of online communications.
❏ Although the project didn’t ultimately gain Pepsi an increase in sales, it
increased their social ROI and brand-equity results.
❏ If Pepsi were to reformat the Refresh Project and link it directly to sales, it
would be more beneficial in 2011.
 What changes would you make to the program to better achieve the
brand’s objectives?
❏ Deeper engagement with the consumer in order for the campaign to actually mean
something.
❏ The closer consumer interaction can lead to increased brand favorability and
trust, in addition to the higher customer intent to purchase.
❏ They should consider incorporating their actual product in their Refresh campaign,
because the disconnect between their products and their values is off putting to
some consumers.
❏ Failure to focus in a specific cause, the campaign was spread too thin into too many
different areas
Is the Pepsi brand team focused on the right metrics to measure success?
What is the value of consumer engagement? How should they calculate
the value of Facebook fans, Twitter followers, and the billions of
impressions generated by the Pepsi Refresh Project?
❏ Pepsi focused on brand engagement and long term brand equity
❏ The neglected to focus on sales and return on investment
❏ Outreach on Facebook, Twitter, and other social media platforms create brand
awareness and primes the consumer for purchase
❏ However, brand awareness might not be enough return on investment for
stockholders and investors
Do you agree with Pepsi’s decision not to advertise during the 2010 Super
Bowl?
❏ It can be argued that by not advertising in the 2010 Super Bowl, Pepsi actually
generated more attention - for free
❏ However, if Pepsi continued to do this every year they would soon be forgotten
 Is Pepsi the right brand for a cause marketing program like the Pepsi
Refresh Project? Why or why not?

❏ In general, large-scale companies like Pepsi should use their platform and extensive
outreach to positively affect society
❏ While Pepsi has the power and resources to accomplish real change, Pepsi itself
may not be the best brand to be doing so
❏ Its main product offers no health benefits to its consumers; many believe Pepsi
(along with Coca-Cola and McDonald’s) are major contributors to America’s obesity
problem
❏ Creating a more positive brand image in order to attract more customers to its
brand and ultimately its products is not in the best interest of the consumer
Updated Development
Since 2011:
❏ Pepsi abandoned the Pepsi Refresh Project in early 2012, when they began to lose
market share and fell behind Coke and Diet Coke
❏ Replaced the Refresh campaign with Live for Now globally, known as Pepsi Pulse in
the US
❏ Pepsi went on to sponsor the Super Bowl half-time in 2012
Questions?