Pepsi Blue By: John Dehmardan

Pepsi Blue
John Dehmardan
Pepsi Blue
 Global
launch of a new brand
identity and logo
 $500
million investment
 Project
Blue: Blue vs. Red
 $30.4
billion in revenue
 Ranked 20 in the Fortune 500
 Revenues
- 35% beverages
- 37% fast food restaurants
- 28% snack foods
US Beverage sales rose by 7%
- Volume growth: 25%
- Price increases: 75%
International sales rose by 14%
- Volume growth: 45%
- Price increases: 55%
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
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
 1980’s:
image advertising
-The choice of a new generation
-Teenage target
27% of total RV
23% of total VS
35% of total RV
30% of total VS
- US: $500 M
- Int: $200 M
- US: $1.2 B
- Int: $600 M
Coca-Cola: Broader and more traditional
- Reintroduce classic contour bottle
Always Coca-Cola
- Sports event sponsorship
- Celebrity endorsements
Youth market
Brand identity changes (7)
Old signs alongside new ones
- Different interpretation by independent
- Inconsistent presentation of
the Pepsi brand to consumers
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
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
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
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
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
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
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
Will It Proceed As Planned?
Logistical nightmare: get everybody on
US organization’s willingness: not-invented
here syndrome
Situation with Latin America bottlers:
significant capital investment