MKT2CBE –

Assessment
Name: 3 Report (group)
Duy Dang Vuong
PepsiCo
Trung Bui Duy
Nguyen Do Phuong
Dat Nguyen Thanh

CONSUMER
Word count:

BEHAVIOR

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Executive summary

The report attempts to analyze in-depth the commercial advert of PEPSI, so-called “Live for

now”, with consumer behavior perspectives. The report is divided into eight different parts

in which each part provides audiences with a thorough understanding of the advert. The

report first tries to show the relevance of the advert with the context of consumer behavior

and the background of the overall industry, the context of the advert in which the campaign

called “Live for now” was launched to benefit what aspects of the firm. Second, the report

goes into the detailed analysis of specific theories of consumer behavior such as

segmentation analysis and appeal used. Segmentation analysis shows what specific group of

customers that PEPSI aims at based on demographic, behavioral, geographic, psychographic,

and the appeal used shows the applied appeals within the adverts such as emotional,

celebrities, music, etc. and the application of utilitarian and hedonic theories. Finally, the

report ends up with the analysis of limitations and improvements as the advert mainly bring

the adverse effects on the image of PEPSI.

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Content

Introduction...............................................................................................................................1

Ad selection and justification....................................................................................................1

Ad background...........................................................................................................................2

Objectives..............................................................................................................................3

Campaign...............................................................................................................................4

History of PepsiCo.................................................................................................................4

Analysis of segmentation variables..........................................................................................5

Demographic segmentation..................................................................................................5

Behavioral segmentation......................................................................................................6

Psychographic segmentation................................................................................................6

Geographic segmentation.....................................................................................................7

Analysis of appeal used.............................................................................................................7

Identification and discussion of advertisement limitations....................................................9

Discussion of improvements to the ad...................................................................................10

Conclusions..............................................................................................................................11

Reference.................................................................................................................................12

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ii | P a g e
 I. Introduction

Through an analysis of the content, language, images, music, and actors in this

advertisement, the paper aims to identify limitations and propose the improvements for

Pepsi in “Live For Now” advertising campaign that occurred as a result of the company's

failure to conduct research and communicate while attempting to promote the brand, as

well as suggested solutions. The report consists of eight parts which are advert selection and

justification, advert background, analysis of segmentation features, analysis of the appeal

used, identification and discussion of advertisement limitations, discussion of ad

improvements, and finally conclusions. The report also points out the outstanding segments

that Pepsi is operating in and the flexible integration of appeals in the advert of Pepsi.

II. Ad selection and justification

After George Zimmerman was acquitted in the February 2012 shooting of African American

youth Trayvon Martin, the campaign began in 2013 with the introduction of the hashtag

#BlackLivesMatter on social media. Following the campaign of two African Americans in

2014, the campaign gained national attention and was accompanied by mass attraction.

Pepsi's commercial launched on April 4th, 2017, in an attempt to capitalize on the Black

Lives Matter movement with their first art exhibition. This is the right time to run the ad

because both Black Lives Matter and protest are influencing customer behavior at that time

as Pepsi wisely utilized the theories, appeals and segmentation variables of consumer

behavior in such advertising campaigns to leverage its image of Pepsi. Pepsi intended to gain

a positive image by raising their voice to protect the colored people through the advert “Live

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for now”. Black Lives Matter sent out the message that, regardless of the reason for the

protest, people all stand together, regardless of their genders, races, or social status. It also

encourages youth to become something bigger than themselves. Understanding that,

Pepsi’s "Live bolder, live louder, live for now" does a good job of representing the protest

such as posters issues and cop, who is standing guard over the protestors, thereby cleverly

promoting their products. Moreover, aside from the compliments, there were also

complaints that the advertisement was unreasonably priced. For their messaging and

corporate social responsibility, PepsiCo chose the incorrect spokesperson. Although Jenner

has a large following on Instagram (she is one of the top ten most-followed people), she is

not renowned for activism or speaking out on social concerns. As a result, PepsiCo’s

examination of this advertising is worth analyzing.

III. Ad background

When it comes to the non-alcoholic beverages, Pepsico Inc is one of the most influential

companies in the market which accounts for 30% in 2011 (Seetharam, Kanti Mondal and

Rishi Singh, 2018). Specifically, Pepsico Inc is a multinational food and beverage corporation

established in the United States with various competitors in the same industries such as

Coca Cola, the Dr.Pepper Snapple (Seetharam, Kanti Mondal and Rishi Singh, 2018).

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 Source: Seetharam, Kanti Mondal and Rishi Singh, 2018

Pepsi produced an ad on April 4th, 2017 which was trying to capitalize on the Black Lives

Matter movement by taking advantage of the Black Lives Matter situation to push its

products via video commercial of the “Live for now” campaign (cite). From the video

advertising, everyone is seen sipping Pepsi, dancing, and having a good time as they mingle

with other protesters. Kendall is invited to join the protest by the cellist, who subsequently

removes her wig and lipstick to appear more daring and bold. Crowd throng the sidewalks

outside the studio, holding posters that read "love" and "join the dialogue"were featured in

ads to help them "live bolder, live louder, live for now".

Objectives

Pepsi intended to focus on lifting people's spirits and encouraging young people to think

beyond the box. The ad had already set the tone for what was to come by selecting the song

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"Lions." Being a part of something bigger than themselves is something that young people

can relate to and feel invigorated by.

Campaign

The ad is clearly aimed at young people and the generation that has experienced rallies such

as Black Lives Matter and Me Too. The various Pepsi colors and packaging utilized

throughout the event reminding the youth that there are things bigger than themselves

going on in the world, it brings out their sense of belonging and freshness. The protest is

crucial because it is perceived as a movement that brings people of many races and

professions together.

History of PepsiCo

PepsiCo's commitment to diversity can be traced back to the 1950s, when incoming CEO

Alfred N. Steele focused the company's attention on enormous marketing activities, which

more than doubled Pepsi's profitability. Early marketing triumphs showed that getting in

front of clients and influencing them is just as important as having a good product. PepsiCo's

success has allowed it to acquire and merge with other food and beverage companies

including Taco Bell, Pizza Hut, and Quaker Oats, allowing it to offer food and beverages in

more than 200 countries across the world (Britannica). PepsiCo, now a worldwide

powerhouse, places a premium on promoting diversity inside the firm, claiming in its annual

diversity report that "our company is strongest when we embrace the full spectrum of

humanity, regardless of what we look like, where we came from, or who we love" (PepsiCo).

PepsiCo advertises itself as gender and ethnicity diverse, yet it has previously promoted

racially charged messages.

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Analysis of segmentation variables

According to Armstrong, G., Kotler & Adam, (2018), Market segmentation is the process of

evaluating a market with the goal of concentrating marketing focus to smaller categories of

customers that have distinct features or habits that may necessitate specific marketing

tactics or mixtures. The organization identifies several market segmentation methods and

creates profiles for the resulting market categories, based on demographic, behavioral,

psychographic, geographic, etc. Thus, when the market is divided into more manageable

chunks, Pepsi can well manage different sorts of customers and propose appropriate

marketing strategies (Armstrong, G., Kotler & Adam, 2018). There have been four

outstanding segments that Pepsico uses to serve their customers: Demographic, behavioral,

psychographic, geographic segmentation as they find it possible to operate in (Wang 2017,

p. 71).

Demographic segmentation

Regarding commercial advertisements, “Live for now”, the main focus of the advert is the

younger because of their presence on the advert. These are those who are still healthy and

don't mind drinking carbonated beverages; they always will buy the original PepsiCo

product (Wang 2017, p. 71). It should be mentioned that Pepsi has more 22 brands that

cater to a wide range of consumers depending on age, gender, financial level, and other

factors. For example, some products prefer to target age subgroup factors when employing

advertising that appeal to a younger audience (Wang 2017, p. 71). According to Schneider

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(2000), the positive connotation with youth and vigor aided in positioning Pepsi's image so

high.

Behavioral segmentation

According to the hedonistic theory, humans are pleasure seekers, and hence advertisements

that appeal to the sensations of pleasure are appealing (Kumar 2009). The group of people

that the advert aims at is called Hedonists who follow hedonism. Hedonists are persons who

desire to live loudly and rush on stage without worrying about the consequences. They like

to live every moment of life with full enjoyment, so the aim of Pepsico is to create as much

fun as possible in order to reach the highest enjoyment of the hedonists in the crowd

(Kumar 2009). Hedonists spend a lot of money without thinking about it; if they want

something, they purchase it (Bussière 2011). If they find a brand they really enjoy, they will

tell everyone about it (Bussière 2011). As a result, Pepsi wants them to be fans of their

product and provides them with numerous reasons to do so.

Psychographic segmentation

Psychographic segmentation according to PepsiCo involves those who have high interests

and beliefs about the protest for equal rights for color people as those from the ads show

their excitement and willinges when being a part of the crowd raising their voice to protect

the color. Moreover, this segment is likely to have a strong belief that they could help color

people to be treated fairly if they have a specific action. Implicitly, in the context of this

advert, Pepsi was very successful as they tried to reach out to the nature of hedonists -

seekers of pleasure. Pepsi also tried to attract youngsters with Pop music and dance to

maximize the excitement in the crowd. Hence, because people enjoyed the moment, Pepsi

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cleverly integrated the image of their brand and product to increase the resonance of the

brand. Consequently, this segment benefits them to remain positive in the eyes of

consumers as they attempt to protect and act to ensure the equity of the colored people.

Geographic segmentation

It can be seen that the place in the ads where the pepsi choose to film the ads is the city

where it has a high population density as in urban areas there are many people. Thus, they

can attract more and more people to catch up with the crowd - those who raise their voice

to protect the color and the equity of that people. Moreover, the video advertisement is

also considered suitable with the city as they are more likely to be willing to join the crowd

and protect the right.

Analysis of appeal used

From the video, it can be seen that Pepsi has used more than one appeal to attract and

influence customers’ attention. Firstly, from the commercial, the social appeal has been

utilized by invoking a person’s sense of belonging and inclusion (cite). In this case, the

advertisement featured people of all different ethnicities enjoying various different hobbies,

showing that Pepsi is trying to appeal to as many different social groups as possible. The

actors of different racial backgrounds helped to establish a sense of inclusion. Furthermore,

even within the environment of a protest, all the people were observed to be singing and

dancing while sipping Pepsi while meeting with others, creating a welcoming and light-

hearted atmosphere that is generally not associated with protests. Similarly, at 0:49s, two

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females were enjoying the meal and drinking Pepsi together with smiles on their faces

which depicts the status of fitting in. By applying social appeal, Pepsi wants consumers to

feel accepted, recognized, respected, affiliated with. . The message was that people should

all stand together, regardless of our genders, race, and status in the society.

At the same time, the hedonic and emotional appeal has also been utilized in the Pepsi’s

commercial as Pepsi's advertisement capitalizes on people's desire for pleasure and brings

the joyful emotions associated with consumption of its products. These values are

demonstrated through showing the pleasurable mood and environment of people holding

Pepsi bottles. A similar scene is when the crowd of protestors start to jump and cheer

after the policemen receive the Pepsi bottles from Kendall, which exemplifies the values

of peace, harmony and love that Pepsi is supposed to mediate between people. According

to the hedonistic theory, this goes along with the idea that humans are seekers of

pleasure, therefore making elements that stimulate our senses of pleasure more

appealing (Kumar 2009). In the video commercial, the song, the cheering, and movements

are all designed to appeal to human senses (cite) which also effectively exploit our

emotions at the same time.

Regarding music appeal, the commercial uses the song “Lions” by Skip Marley with a

strong and energetic tone, and a catchy background beat. The ad established the tone for

what was to come, with lyrics "We are the chosen; we gonna shine out the dark" and a

message that maybe youngsters can relate to and feel motivated by being a part of

something bigger than themselves and overcome the hard situation that was happening

at the time. In its application of the music appeal, the commercial wanted to associate the

feeling of overcoming hardship and strength with Pepsi with an easy to recall lyric. (cite)

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Furthermore, the commercial video also uses endorsement appeal1 to push the products

by using celebrities like Kendall Jenner to advertise. Particularly, Kendall Jenner is a

famous model and an influencer among the top 10 with highest following on Instagram at

the time with around 85 million followers. With her casual style and the girl-next-door

looks, she exudes the free-spirited attitude and is extremely popular among the younger

demographic. According to a research in 2021 by Shi, P et al., having a celebrity

endorsement is particularly more effective when promoting symbolic values over more

functional appeal, which is also the aim of the commercial.

Lastly, the utilitarian principle is used in the ad to show the benefits of all parties (Hunt &

Arnett 2004). The crowd of protestors, the policemen, are in the mood of excitement

when they enjoy the drink in the advert. They have shown satisfaction by using Pepsi’s

products with the taste and its convenience. The commercial also tries to demonstrate

that Pepsi can be used to diffuse a stressful or tense situation such as a protest.

Identification and discussion of advertisement limitations

The main and most glaring failure of the commercial is the fact that it is completely tone

deaf to the events happening at the time; in other words, the commercial was the result of a

failed kairos. The commercial was trying to capitalize on the Black Lives Matter movement

and the racial and social tension happening in America, and yet its content completely

ignores the context behind such divisions. Several high profile police brutality and murder

were the center of attention at the time and protests were happening all across America in
1 Endorsements are a form of advertising that uses famous personalities or celebrities who command a high
degree of recognition, trust, respect or awareness amongst the people. Such people advertise for a product
lending their names or images to promote a product or service

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response to this. The commercial instead tried to downplay the severity of this issue in its

presentation with upbeat music and vibrant and almost festival-like atmosphere as if it was

something trendy or stylish to do - while the shock and anguish surrounding these events

were still fresh within the public consciousness, which generated a backlash so great that

prompted Pepsi to pulled the ad within 24 hours of release. A poor attempt at classical

conditioning can be seen here as PepsiCo wanted its viewers to associate its Pepsi cans with

values such as peace, harmony and creativity - and yet offer them no incentive or

motivation to do so.

To add insult to injury, by featuring Kendall Jenner - a wealthy white model who has

absolutely no affiliation with the Black Lives Matter movement who has never been socially

or politically active, which makes the commercial seem more of a PR attempt for Kendall

Jenner. Furthermore, the commercial can also be considered a typical example of modern

day slacktivism - showing support for a cause without having any actual commitment.

Despite the positive messaging, the commercial did not contribute any meaningful

discussion or resolution surrounding the problem. It wanted its consumers to associate the

Pepsi cans with the Black Lives Matter movement yet it did not actually contribute anything

to support the movement or tackle the issue that its own commercial was trying to mention.

In fact, it wasn’t until August 2017, three months after the commercial was withdrawn did

PepsiCo release a statement and its pledge to improve equity for black communities on their

website.

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Discussion of improvements to the ad

The main issue to be tackled from this advertisement is its tone deaf approach and

inappropriate representation. Considering that the demographic that was most affected by

the issue at the time were African-Americans, the featured celebrity or key opinion leader

should be replaced with someone who has a more appropriate background such as a social,

political or rights activist of the Black Lives Matter movement. The tone of the commercial

should also be more serious and less cheerful so as to not trivialize the political issue that it

wanted to portray. The commercial could include statistics regarding police brutality or

inequality to highlight the problem or provoke discussion instead of being a bland and

generic protest which happens to be featuring a soda can.

In fact, according to a research by the journal Psychology & Marketing in 2012, consumers

who have a specific attitude towards a product will usually carry over this same attitude to a

different product of a brand - and that negative preconception is harder to dispel than

positive ones. In this case, there was a strong general negative reaction towards the

commercial from the public and pulling the commercial before it could generate any further

negative attitude within consumers was a right move for Pepsi to do.

Furthermore, in order to make its classical conditioning work, the commercial can instead

try to link the Pepsi cans to a more concrete value or action. For example, PepsiCo could

have made direct donations or contributions to black rights organizations and then use this

as a basis for association to generate a new belief within its consumers that buying Pepsi

also means supporting these movements.

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Conclusions

In a nutshell, Despite its success in utilizing many appeals and making good use of the

timing, the commercial can be considered a failure. This is due to the fact that the

commercial tried to include too many demographics without focusing on a specific one and

therefore lost its message in the process. Furthermore, one has to question the ethics of the

commercial as not only did it not contribute anything to the discussion and instead try to

appease both sides of the argument, which made the company appear greedy and immoral.

In an industry where the public image is vital to promoting a product, this commercial can

be considered a time bomb and Pepsi had made the correct decision in apologizing and

pulling the ad.

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