INTRODUCTION

Pepsi Blue Case Study

During the 1990s, PepsiCo launched new products and engineered a global re-branding
campaign in an effort to grow sales volume; reinvigorate their stagnant brand; and to close the
increasingly large sales and market share gap between itself and its primary competitor, Coca-
Cola. In 1993, Pepsi jump-started its brand-secondary' marketing efforts by adding two brands
to its portfolio: Crystal Pepsi and Pepsi Max. Crystal Pepsi, which was initially offered in the
United States, failed to earn the company more than 2 percent volume share. Pepsi Max, which
was launched in the United Kingdom, proved more successful, but because one of its primary
ingredients was an artificial sweetener not yet approved by the Food and Drug Administration,
it wasn't brought to market in the United States.
Since neither of the products created the measurable sales and market share increase Pepsi
needed, PepsiCo International (PCI) executives conceived of a plan to create a new tagline and
re-brand all existing Pepsi products, signage, advertising materials and in-store display units.
The executives envisioned a simultaneous, global campaign that would create stronger brand
equity and resonance in the consumer consciousness.
Executives were assigned four primary tasks: to evaluate the effectiveness of Pepsi's logo; to
assign a signature color to Pepsi products; to develop a mnemonic device for advertising and
brand recognition; and to further differentiate Pepsi products from Coca-Cola products by
making Pepsi products' design more modern and attractive to its primary audience (teenagers).

The executives' solution was Pepsi Blue, which consisted of a futuristically-designed logo for
cans, bottles, vending machines, trucks, etc.; an advertising campaign gleaning borrowed
interest from celebrity endorsers; and unique, high-exposure sports and event sponsorships to
position the brand among teenage consumers.

Pepsi Blue was first test-marketed in Bahrain for three reasons: first, the majority of residents
drank Pepsi; second, regional marketers and bottlers had already begun re-evaluating the
effectiveness of the company's white logo (which didn't work well in their market); and third,
the city was a small test market with a tightly controlled sample population. The Pepsi Blue
logo, tagline and new marketing materials were rolled out in half the market and its results
were highly successful. Purchasers liked the new logo design and the majority believed that the
packaging had improved and the taste remained the same. For those who believed that both
the taste and packaging were different, the majority enjoyed the "new" taste.
GROWTH

Pepsi Blue was promoted after New York Mets games during the summer of 2002, where the
color blue was one of the symbolic colors of the ball club. Other promotions included handing
out free bottles from a Pepsi Blue-themed VW New Beetle at popular shopping centers around
the country. Jolt Cola makes a similar beverage called Jolt Blue CX2; a blue raspberry soda in a
battery-shaped metal can with a flavor often described as like that of cotton candy. Pepsi Blue
was also endorsed by Adam Vinatieri, the then New England Patriots kicker.
In Manila, Philippines, Pepsi Blue was sold for a limited time in late 2002 to commemorate the
championship of the Ateneo Blue Eagles in the UAAP. In 2011, Pepsi released Pepsi Blue in
Metro Manila, Philippines as Pepsi Pinas.[6] After the Pepsi Pinas was successful, it became a
permanent product and renamed as Pepsi Blue. It is rare in bottles and cans but common as a
fountain drink at Philippine 7-Eleven outlets. In India, Pepsi Blue was sold during the 2003
Cricket World Cup as a gesture of support to the Indian cricket team, the cricketers of which
wear blue jerseys