Coke identity: Kapferer prism

Pepsi identity: Kapferer Prism

Success of Pepsi branding strategy

Customer Desired Benefits : Pepsi has been successful in capturing the Youth Spirit.It has also ventured out to different customer segments with different offering for e.g. Diet Pepsi was introduced to cater to the health conscious people. Pepsi’s entire Product Portfolio caters to the different customer segments.

Relevance : It’s  considered to be a new generation drink, the drink has managed to grab the imagination of Teens and young Adults alike. Pepsi through the combination of innovative ideas (like Pepsi Blue even though a failure), effective communication and aggressive advertising has been able to stay relevant to its customers.

Pricing : based on consumer’s perception of Value and on the market. Pepsi isn't on a price war with coke in order to keep its brand equity.

Brand positioning : The brand positioning is based on its sweet sugary taste suited for its young consumers. Thus it was able to create a Point of difference from Coca cola.

Consistency : Pepsi has maintained continuity in its brand image and has been consistent in its brand promise of refreshing drink for Youth. It has always depicted a defying attitude and continued to challenge the market leader. Its campaign have been about making a mark and proving its real benefit among young people & cool people.

Brand Portfolio and hierarchy : All Pepsi brands cater to different market segments and rarely cannibalize each others sales. It also gives Pepsico optimum market coverage as its products are diversified.

Repertoire of marketing Activity : Pepsi’s Brand Elements are distinctive and the awareness is very high. It has an extensive distribution network. Promotional campaign have also been innovative in the usage of social media like Facebook ore twitter .

Internal Branding : Pepsi’s give it brand manager the liberty to experiment  ideas to capture customers at the bottom of the pyramid. Pepsi also has predefined set of rules that brand manager should follow which is meant to develop a sense of ownership for the brand.

Sustainable and support marketing programs : Pepsi marketing team is probably the most innovative when it come to determining go to market strategy for its product. The company’s marketing expenditures are very high.

Monitoring Sources of Brand Equity : Pepsi has a series of monitoring programs like periodic brand audit, routine brand sales tracking, monitoring brand performance, etc.

Pepsi branding strategy is very effective. Its brand value has been estimated to $12,762 million.

Source:

Building, measuring and managing Brand equity, Kevin Lane Keller

Pepsico.com

http://www.marketingweek.co.uk/brands/pepsico/ 
http://www.ideasmakemarket.com/2012/03/ideasclash20-entry12-branding-strategy.html
http://article.unipack.ru/eng/18573/
http://fr.slideshare.net/rohitpatel203/branding-of-pepsi-cola#btnNext

Coke Brand Identity

A brand is based on:

-the name

-physical elements: logo, color, shape…

-its identity

It defines who you are, who you want to be as well as how you are perceived. It is important to know exactly your market and your strategy to be successful.

Coke bottle for example is red, scripted “Coca Cola” and is known for its Old-style bottle. The main identity of Coca corresponds to the message they vehicle, in other words “Coke makes you happy”.

Brand image

It is an important factor influencing Coca Cola sales. The brand has the privilege to be known all around the world as they have built their image on a universal value, happiness. The brand is perceived by consumers as a part of daily life and of their life style. Coke is this globalized product that has the same taste customers are looking for, and which give the same pleasure of refreshment during break together.

Brand loyalty

The brand image conveyed, the visibility and availability of products and ads, and also the expected quality everywhere make Coca Cola one of the most bought brand in the world. It is the most sold one.

If we take purchasing frequency in the US, figures speak for themselves: 48% of Americans drink a soda everyday with an average of 2.6 glasses per day. When we know that coke represents almost 50% of Soda consumption, there is no doubt that its customers are loyal. Around the world, more than 3% of beverages consumed are Coca Cola, that is to say 1.7 billion serving/day.

As we have noticed, it is seen as part of daily life, and we can thus say that Coke has achieved a high level of loyalty. A recent Coca-Cola annual report reported that the second most recognized expression in the world after “ok?” is “Coca-Cola.”

Brand equity

            Because of brand extension, Coca Cola equity is difficult to measure. People do not distinguish all brands own by the company, and might even buy without knowing they will be drinking or eating Coca Cola’s product. However, the brand promises the same experience around the world: refreshment, fun and good times, American lifestyle.

            Moreover, Coca-cola is recognized as the most valuable in the world by the respected inter brand corporation valued at above US $ 67 billion , coke has become effectively a part of modern world culture though its advertising campaign has changed over the years, “THE REAL TASTE” has always stood for a ”REAL” COLA DRINK with authenticity. There is legitimacy recognized and appreciated by everyone.

The identity has been built with consistent values and differentiating elements during a decade. Despite the competition, the brand continues to be a number one position globaly in brand equity rankings. 

Coke is affecting every part of life and every cultures.

What far can we go to have 2 cokes?

Sources: 

http://www.businessinsider.com/facts-about-coca-cola-2011-6?op=1
http://fr.scribd.com/doc/46403814/Coca-Cola-CBBE-Model

How values influence consumer's Coke choice?

Emotional value: 

Coke has always been, and especially during though times, the brand which brings positivity and joy to people simply by taking a break with Coke. That has always been their message: to enjoy simple pleasure of life. That emotion is transcribed all over the world and shared by all the society whatever their age, social status or gender. The power of coke is to turn this benefit into its advantage by making it differentiating, and it works! A blind test revealed that Pepsi was preferred to Coke, while testers affirm they prefer Coke when they know the brand that is to say when the test is not “blind”. That is the emotional power Coca Cola achieved: changing a taste preference through the brand.

Social value: 

Coca cola is the symbol of sharing and social values. Throughout our own experiences reflected in their advertising, we share coke in different occasions such as beach trips, family dinners, football games, parties with friends…Coca cola brings people together, and makes all occasions good to share a Coke.

Condition & function values:

High availability: anywhere you are, whenever you want you will find Coke.

Available in all sizes and quantities.

Different tastes

Hydrating, refreshing, replacement for water.

Affordable for all social segment of a society

Coca Cola development strategy success

           

            For sure, brand loyalty is an important variable in maintaining Coke’s number one position. Founded in the year 1886, the Coca Cola company is the biggest non alcoholic beverage company of the world. It has a distribution system, which makes it unique from the rest of the soft drink manufacturers. Over the years, Coca Cola has enhanced the brand through tests and the company continues to communicate as much as possible to stay in consumer’s mind.

The brand development strategy of Coca Cola included brand and product development, but also techniques and strategies in order to keep up with the switching and changing trends of its consumers.

            Earlier, this brand believed in affordability, availability and acceptability.

However, brand development strategy of Coca Cola was reworked to match a higher loyalty and equity. They have based their branding on price value, preference and “pervasive penetration”. 
In order to have an effective brand identity, Coca tests each month more or less 20 attributes involving as many as 4000 customers. 
           The brand development strategy of Coca Cola has been able to build, manage and maintain its brand image according to consumers’ attitudes and behavior. 
A worldwide acceptance and a constant brand image has been possible thanks to brand loyalty; Coca Cola is connected with its customers and they do not count expenses on that field. 
Constant communication enables to enhance frequency of purchase, which is instrumental for brand loyalty. Also, by responding to a trend and a need which is “health” and “diet”, Coca Cola has segmented its market into 3 parts: Classic Coke, Diet Coke for girls style-conscious about their weight and Coca Cola Zero for men, promoting an unconventional but effective ad. Coca Cola went from “the real thing” to “many things” successfully thanks to its positioning and branding strategy.

Sources:

http://fr.scribd.com/doc/22027744/Coca-Cola-Branding-Strategy

http://fr.scribd.com/doc/46403814/Coca-Cola-CBBE-Model 

Pepsi Promotion

Over the last decades and since the 1990’s, Pepsi revitalized their advertising campaigns with celebrities from a wide range of fields. Besides, their attractive and inspiring website was a huge asset to the company as it not only presents the Pepsi products but also includes promotions games, music, and movie trailers.

Pepsi promotion for Pepsi’s Project Blue introduced  the first commercial to be filmed in space. 

  Pepsi also reiterated their promotions with their new ads featuring

 basketball superstar Shaquille O’Neal. The ad offers the buyer to earn points 

that can be exchanged for Pepsi prizes. With the advent of the new 

millennium, Pepsi confirmed their established promotions and advertisements 

strategies Pepsi’s younger image is also aided by celebrities endorsement 

touted by the teen market including Britney Spears,pink, Beyonce ,NSync, 

along with popular rappers.

The company engaged in the popular Pepsi Challenge, and became the

 National Football League’s official soft drink sponsor with Gatorade. For its 

marketing campaign “dare for more” has succeed to have great soccer players 

of the world such as Roberto Carlos,David Beckham,Ronaldinho,Totti

 Pepsi slogans from 2008:

2008:	"Pepsi Stuff" Super Bowl Commercial (Justin Timberlake)
2008:	"Pepsi is #1" Тv commercial (Luke Rosin)
2008–present:	"Something For Everyone"
2009–present:	"Refresh Everything"/"Every Generation Refreshes the World"
2010–present:	"Every Pepsi Refreshes The World"
2011–present	"Summer Time is Pepsi Time"
2011–present	"Born in the Carolinas"
2012:	"Where there's Pepsi, there's music" – used for the 2012 Super Bowl commercial featuring Melanie Amaro
2012	"Live For Now"
2012	"Change The Game"
2012	"The Best Drink Created Worldwide"

PEPSI REFRESH PROJECT

We can't talk about Pepsi communication without mentioning the Pepsi refresh project. Indeed, PepsiCo is one of the first company to have used internet for its communiction and advertising.

The Pepsi refresh project became a reference in social media campaign after its launch in 2010. Let's have a look to this huge campaign, representing a rupture in Pepsi's strategy.

Pepsi has been acting in this project in coherence with its Modern, innovtive image as its archetype defines it. Indeed, Pepsi has spent less money promoting the brand in the super bowl very expensive ad and they have invested in social marketing to help communities. Just like Coca Cola, they are willing to prove they can help people in 8 different categories by improving local communities well-being. They invited people to submit their ideas that people would vote for; all that through social media. $20 million were given to support the wining ideas.

Passing from a traditional 23 years old super bowl ad to an innovative and without precedent campaign, Pepsi took a lot of risks investing in such a project with uncertain issues. But the positioning of the campaign ensured them a successful buzz on media, especially social media. The on-line and off-line media coverage was huge. Rare are the media who haven’t mentioned this initiative. From newspapers to magazines, from Facebook to radio, from YouTube to Blogs: every medium in every format have talked about the Pepsi Refresh project.

Each person concerned or who have heard of the project had something to share about it. The personal involvement about a cause, or the one of a close relative/friend would necessarily generate interest.

Even marketer/communicators seized the phenomenon, talking about it in study cases, making videos of it, and taking it as an example of innovation, of success or of branding.

The Refresh Project accomplished everything a social media program is expected to:

·         Billion of ideas submitted

·         1000+ ideas selected

·         Over 80 million votes were registered

·         3.5 million “likes” on the Pepsi Facebook page

·         60,000 Twitter followers.

In order o have an idea of what Pepsi Refresh Project grantees have accomplished, here are a quick overview of what the project has accomplished:

• “68 Parks and playgrounds that have been built or improved
• 30 Prom outfits that have been donated to high school seniors who could not afford them
• 50 States that have voted for ideas in the Pepsi Refresh Project
• 108 Schools that have been improved
• +/- 200 iPods/Smartboards that have been installed in classrooms
• 3,800 Animals that have been saved or treated
• 4,500 Donations in dollars raised in addition to Pepsi Refresh Project funding
• 23,000 Volunteers involved in the Project
• 1,000 Pajamas that have been donated to those in need
• 123,332 Miles grantees have traveled by foot, bike and skate on Pepsi Refresh Project-funded action trips
• One million People impacted by grantees over the course of the Pepsi Refresh Project

• 3.2 million Dollars of additional funding leveraged”

The campaign had therefore a lot of success among people and among media, thanks to its innovative concept and the rupture with the traditional ad they were making each year at the same time. But the social media campaign has faced a lot of critics and skepticism from marketers and communicators who weren’t sure of the results for Pepsi even if they were amazed by its success. 

Indeed, the only thing the campaign failed to do was sell Pepsi. Indeed, the brand lost 5% of its market share within the campaign period. It has proved that traditional advertising can't be totally replaced by social media; they are complementary.

Sources:
 http://www.poetpatriot.com

http://popsop.com/41621

http://multivu.prnewswire.com/mnr/pepsirefreshproject/47651/

http://awards.ixda.org/entry/2012/pepsi-refresh-project

http://adage.com/article/viewpoint/a-teaching-moment-professors-evaluate-pepsi-refresh-project/237629/