1. Pepsi Blue
By:
John Dehmardan

2. Pepsi Blue Global launch of a new brand identity and logo
$500 million investment
Project Blue: Blue vs. Red

3. PepsiCo $30.4 billion in revenue Ranked 20 in the Fortune 500 Revenues
- 35% beverages
- 37% fast food restaurants
- 28% snack foods

4. PepsiCo US Beverage sales rose by 7% - Volume growth: 25%
- Price increases: 75%
International sales rose by 14%
- Volume growth: 45%
- Price increases: 55%

5. 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

6. 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

7. Rivalry 1980’s: image advertising -The choice of a new generation
-Teenage target

8. Rivalry Pepsi Coca-Cola 27% of total RV 23% of total VS Advertising
- US: $500 M
- Int: $200 M
Coca-Cola
35% of total RV
30% of total VS
Advertising
- US: $1.2 B
- Int: $600 M

9. Rivalry Coca-Cola: Broader and more traditional positioning
- Reintroduce classic contour bottle
Always Coca-Cola
- Sports event sponsorship
- Celebrity endorsements
Youth market

10. PepsiCo Brand identity changes (7) Old signs alongside new ones
- Different interpretation by independent bottlers
- Inconsistent presentation of
the Pepsi brand to consumers

11. 1898

12. 1905

13. 1908

14. 1930

15. 1940

16. 1956

17. 1962

18. 1973

19. 1991

20. Brand Identity Lander Associates
Worldwide photographic audit of Pepsi’s brand presence
-2000 photographs from 34 countries

21. 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

22. Brand Identity Blue as a much stronger color than white
- Consumers viewed it as modern and cool
- Communicates refreshment
- Exciting and dynamic

23. 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

24. New Design Unitalicized logotype - Added boldness and stature
Reversing colors
The ball became globe
- Showing only a quarter
Larger-than-life personality
Futuristic looking

25. 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

26. Bahrain Test New advertising slogan: “ New look. Same Great Taste,”
Television and print advertising executions during the test was sustained at previously planned levels

27. 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 )

28. 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

29. 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

30. 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

31. 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”

32. Global Roll out
Advertising (April 1996) to be seen by 300 million people in 20 countries in first four weeks
Television spots featuring celebrities

33. 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”

34. 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.

35. 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

36. 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

37. Questions?