Pepsi Blue By: John Dehmardan

Pepsi Blue
By:
John Dehmardan
Pepsi Blue
 Global
launch of a new brand
identity and logo
 $500
million investment
 Project
Blue: Blue vs. Red
PepsiCo
 $30.4
billion in revenue
 Ranked 20 in the Fortune 500
 Revenues
- 35% beverages
- 37% fast food restaurants
- 28% snack foods
PepsiCo

US Beverage sales rose by 7%
- Volume growth: 25%
- Price increases: 75%

International sales rose by 14%
- Volume growth: 45%
- Price increases: 55%
PepsiCo

Pepsi, Diet Pepsi, Pepsi Max
- 40% of US beverage sales
- 70% of international sales

International sales
- 29% of total beverage revenue
- 18% of beverage operating profits
Rivalry
1930’s :Price oriented campaign
- Twice as much for a nickel
 1970’s :Taste superiority
- Pepsi Challenge
- 20 million took the challenge
60% chose Pepsi over Coke

Rivalry
 1980’s:
image advertising
-The choice of a new generation
-Teenage target
Rivalry
Pepsi
Coca-Cola
27% of total RV
23% of total VS
35% of total RV
30% of total VS
Advertising
- US: $500 M
- Int: $200 M
Advertising
- US: $1.2 B
- Int: $600 M
Rivalry


Coca-Cola: Broader and more traditional
positioning
- Reintroduce classic contour bottle
Always Coca-Cola
- Sports event sponsorship
- Celebrity endorsements
Youth market
PepsiCo

Brand identity changes (7)

Old signs alongside new ones
- Different interpretation by independent
bottlers
- Inconsistent presentation of
the Pepsi brand to consumers
1898
1905
1908
1930
1940
1956
1962
1973
1991
Brand Identity
Lander Associates

Worldwide photographic audit of Pepsi’s
brand presence
-2000 photographs from 34 countries
Brand Identity



Inconsistencies and lack of integration
No particular color except perhaps white
Did not express the energy and core essence
of Pepsi
-Did not work well on the sides of trucks or
vending machines
-Cans look like motor oil
Brand Identity

Blue as a much stronger color than white
- Consumers viewed it as modern and cool
- Communicates refreshment
- Exciting and dynamic
Design: Strengthen the Brand
Identity
1- Develop a flexible design
2- Establish blue as Pepsi’s dominant color
3- Develop a mnemonic device
4- Create a modern, even futuristic, look and
image to contrast with Coke’s traditional
positioning
New Design



Unitalicized logotype
- Added boldness and stature
Reversing colors
The ball became globe
- Showing only a quarter
Larger-than-life personality
Futuristic looking
Bahrain Test




Project blue launched initially in Bahrain
12 week program
Newly designed cans and bottles distributed
throughout the city
Blue project implemented in one-half of the
city
Bahrain Test

New advertising slogan: “ New look. Same
Great Taste,”

Television and print advertising executions
during the test was sustained at previously
planned levels
Bahrain Test




Tracking research was conducted before,
during and after the test.
Measures of brand attitudes, sales volume
and market share increased.
No change in taste: 70%
Taste changed: 30% (70%: better )
Why Bahrain?
Why Project blue launched initially in
Bahrain?
1-Experimenting with blue backgrounds
2-Franchisee critical of PCI headquarters
3-Pepsi sales dominated Coke’s by 3 to1
4-Two separate islands enabled PCI to
conduct a controlled field test

Global Roll out


Positive results persuaded PCI executives
that their enthusiasm for Project Blue is
well-found
Recommendations : Project Blue should be
launched along with a creative and
expensive communications program to
support the worldwide launch
Global Roll out

Recommendations : Blue be rolled out in
markets accounting for half of brand Pepsi’s
international sales volume

20 billion cans and bottles reach store
shelves by the end of the year
Global Roll out

$500 million marketing program to support
the worldwide launch

Systemwide conversion of bottles and cans,
Coolers and vending machines, and trucks

“Change the Script”
Global Roll out

Advertising (April 1996) to be seen by 300
million people in 20 countries in first four
weeks

Television spots featuring celebrities
Global Roll out
Public relations initiatives:
- Ten city tour of Europe and the Mideast by
Concorde jet adorned by Pepsi’s new colors

- Sponsorship of the Russian Mir Space
Station: “Even in Space- Pepsi is Changing
the Script”
Will It Proceed As Planned?

Some members impressed but concerned
about the magnitude of the proposed
communication campaign.

Others argued the sales and share trends vs.
Coke gives Pepsi no choice. Big new idea
is needed.
Will It Proceed As Planned?

Concerns about Bahrain results
-slower roll out on a region-by-region basis
-launch blue in lead market in each region to
motivate the other bottlers in the region to
follow
Will It Proceed As Planned?

Logistical nightmare: get everybody on
board

US organization’s willingness: not-invented
here syndrome

Situation with Latin America bottlers:
significant capital investment
Questions?
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