Pepsi Refresh Project Case Analysis

Problem Definition

Should Pepsi continue the Pepsi Refresh Project? If so, how should the marketing strategy and
execution be changed to use the project’s success to drive Pepsi sales?

Decision Alternatives

1.Discontinue the Pepsi Refresh Project and use the funds for advertising again.

2.Continue the project as it was originally intended.

3.Continue the project with less commitment and a different purpose.

Background

Pepsi brand originated in 1898 as a hand mixed carbonated drink sold at a pharmacy in North
Carolina. It is a division of PepsiCo, a global brand that sells snack foods, beverages, and food brands.
Valued at over $14 billion, PepsiCo is ranked 23rdon the Interbrand best global brands list. The Pepsi
brand includes Pepsi, Diet Pepsi and Pepsi Max. Pepsi brand is positioned as the drink for the young
and the young at heart. The senior marketing director and the head of the Pepsi Refresh Project, Ana
Maria Irazabal says, “Pepsi’s DNA has always been, “Spirit of the challenger, celebration of next
generation, and of optimism & things young at heart.””

Pepsi has always positioned its drink for the young and young at heart and has featured artists,
models, sports figures, and the like in their advertising to promote this message. Pepsi wants to
continue this message and bring it to the most globally connected generation yet, the Millennials,
while still being a favorite to the previous generations.

Rivalry with the main competition Coca-Cola has jockeyed Pepsi, back and forth for 1stplace in sales
in the US since the 1970’s. Coca-Cola lead the soft drink market in 2010 but the industry as a whole
was facing declining sales. Analyst expected declining sales at a rate of up to 3% annually from 2009
to 2019.

In 2009 Pepsi announced that it was not going to run advertising during the 2010 Super Bowl but
instead use its Super Bowl advertising budget, $20 million, to support a cause marketing project. The
project named the Pepsi Refresh Project awarded grants to ideas that refreshed communities. The
ideas that garnished the most votes on the website would be awarded the funds.

Relevant Information

The Refresh campaign started in 2009 with the tagline “Every Generation Refreshes the World”.This
campaign was launched towards the baby boomers who were no longer buying soda and to attract
Millennials to the brand. The climate of the country was for change and PepsiCo capitalized on this
sentiment. Pepsi wanted to take a different approach to advertising and generating support for its
brand by introducing the Pepsi Refresh Project. The project was a way to bring a positive impact to
communities. Research showed that the brand’s social capital was important to consumers. Thisis
important to Millennials who consider a company’s social and environmental impact
Rana DarveshMrkt 510 Spring 2016P a g e | 2when shopping and would prefer to shop with a brand
associated with a good cause. The Pepsi