Saint Paul School of Business and Law

Campetic, Palo, Leyte

MARKMAN
(10:00-11:00 MWF)

Submitted to: Marla Sudario

Submitted by: Jan Mervic Neil D. Daiz
Nico Sison

BRAND: PEPSI BLUE

Pepsi Blue is a berry-flavored soft drink produced by PepsiCo. Its flavor was the result of tastetesting over 100 flavors over a 9-month period. It was designed to compete with Vanilla Coke,
which was produced by The Coca-Cola Company. The flavor of Pepsi Blue was described by
Pepsi only as "berry" and described by drinkers as like blueberries or raspberries, or similar to
cotton candy with a berry-like after taste and much more sugary and syrupy than regular cola. It
was tinted using Blue 1,a highly controversial coloring agent banned in numerous countries at
the time. The move to make a brightly colored version of the flagship Pepsi brand was spurred
by 2001's introduction of Mountain Dew Code Red, which had bumped PepsiCo's Mountain
Dew division sales up 6%.

MAKER: PepsiCo, Inc.

PepsiCo Inc. is an American multinational food, snack and beverage corporation headquartered
in Purchase, New York, United States, with interests in the manufacturing, marketing, and
distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in
1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since
expanded from its namesake product Pepsi to a broader range of food and beverage brands, the
largest of which includes an acquisition of Tropicana in 1998 and of Quaker Oats in 2001, which
added the Gatorade brand to its portfolio.

Failure of Pepsi Blue

I think the reason behind Pepsi blues failure is because of their positioning. Pepsi did not
understand how to properly name and market their new product. The company released a new
product under the name of a pre-existing product. The downside of this strategy is that, the
original product already holds a position in the customers mind. Therefore, when people thought
of Pepsi Blue, they thought it would taste like Pepsi, not a super-sugary berry drink. As a result
of this, consumers were disappointed when they bought the product.