Rebranding Pepsi in the US - Marketing Communications Short Case Studies

Details

Case Code : CLMC050
Publication date : 2009
Subject : Marketing Communications
Industry : Consumer Packaged Goods/ Beverage and Snacks
Length : 05 Pages
Price : Rs. 100

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Key words:

Rebranding, logo, brand, mass marketing, restructuring, Pepsi, economic slowdown, Coca-Cola, brand proposition, packaging, merchandising, Productivity for Growth, supply chain, product portfolio, brand building, research and development, direct mail, social networking, product line, Pepsi Flickr Photostream

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

Abstract:

On October 27, 2008 PepsiCo Inc. (PepsiCo) unveiled its new logo as part of its rebranding strategy. With this rebranding exercise, the company aimed to improve its sales in the North American Beverage division. The company faced waning sales due to the worsening US economy, economic slowdown, and plunging stock markets. As part of the rebranding initiatives undertaken by PepsiCo, its existing product line was also revamped. PepsiCo hoped that this rebranding exercise would help it arrest the fall in sales and compete with its rival Coca-Cola. While some experts welcomed this move, others were not very optimistic about Pepsi’s rebranding initiatives and its effectiveness.

Issues:

  » Positioning and Re-positining
  » Rebranding
  » Competition

Introduction

On October 27, 2008, US-based beverage and snacks company, PepsiCo, Inc. (PepsiCo), unveiled its new logo as part of a rebranding strategy for the North American Market. This marked the eleventh massive rebranding exercise that the company had undertaken in its 110-year history...

Questions for Discussion:
1. What is the rationale behind Pepsi's rebranding exercise?

2. Critically analyze the brand repositioning efforts made by Pepsi. Do you think brand repositioning will help Pepsi improve its declining sales in its North American division?

3. Do you think Pepsi was justified in going ahead with layoffs on the one hand and investing huge amounts of money on a logo alone, on the other?

4. Do you think Pepsi's new logo will be instrumental in improving the sales of the company? What else needs to be done?