The Pepsi Refresh Project: A

Thirst for Change

Consumer Behavior
Section B
Group 2

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02-08-2022 1
Should the Pepsi brand team continue to fund for the Pepsi refresh
Project? If yes, then what is the motivation? If no, then comment

Continue Pepsi Refresh project Discontinue Pepsi Refresh project

• Positive response form Baby Boomers (14 million
votes) Gen Xers (9 million votes)
• Widespread awareness of the project (38%) and
increase in purchase intent (+4%) and positive view of
brand (+7%)
• Increase in brand health score
• Campaign generated %66 million earned media for
the firm
• Success of program in terms of gaining social media
followers and accolades from the award shows,
magazines
• Excitement and positive sentiment of employees
propelling the project and ‘feel-good’ about the firm
• It do not resonate with half a century old brand personality
• The user engagement that PepsiCo targeted to create with
the campaign wasn’t successful. People hardly spent any
time on the website (avg time: 3.5 min)
• The campaign did not resulted in positive sales conversion,
and sales figure fell by more than 5%
• The individual grantee are quite less (100) as compared to
non-profit groups (230), indicating that the campaign was
ineffective in bringing individuals to better the society
• Decrease in weekly ideas started, site visits and votes
indicates a decrease in user engagement
• Inability of campaign to link itself to product purchase by
customers
• Negative press garnered by the campaign

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What is the value of
customer engagement?
How should they calculate
the value of social media
engagement?
Customer engagement value is a
comprehensive term that
measures the total value of the
customer through capturing his
transactional and non-
transactional behaviors. Hence, it
is an essential term for
measuring the value of the
customer in direct marketing.
02-08-2022
Calculating the value of social media
engagement:
1. Unique visitors to the site (1692487)
2. Cost per unique visitor (total cost/number of
unique visitors, 20 mil/1692487 = $11.81)
3. Time spent (3.5 min)
4. Page views (3.9)
5. New visits (47.4%)
6. Total votes (5729842)
7. Share posts (161784)
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What is Murray's Psychogenic need for Pepsi in 2011? Comment on the success and
failure of the Super Bowl advertisement taking in account consumer personality.
Murray’s Psychogenic Needs
Success and failure of Super Bowl ad
Change: Pepsi refresh is a change in Success:
branding of PepsiCo from a cool and fun
brand to socially conscious and caring.
Eg: Allocating the budget for Super bowl
advertising to funding the social cause
Achievement: Giving a sense of
accomplishment to people by engaging
in social initiatives. Eg: Ads showing
people meeting their social goals
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Is Pepsi the right brand for the cause marketing Program
like Pepsi refresh Project? Why or why not?
Aligning a brand with a cause that is valuable to the brand audience is an important step to build
brand affinity.
The pepsi refresh project let people in social media decide the causes pepsi would support.
Various NGO could apply to be featured through the project and then advocate for their support
network to go and vote for pepsi to financially support the project.
To fund this idea, Pepsi redirected super bowl marketing dollars.
Pepsi market share diminished
Sales metric was not considered
Pepsi may not be a right brand for cause marketing program as it was made up of soda.
It is not promoting health and social cause by its product but promoting through campaigns
It wanted the attention of millennials to increase their market share but main reason was left out
It gained cause to talk about the brand but not share as it was still a carbonated drink

5
For any cause marketing programs explore the risk and
reward from consumers and media?
Rewards:
1)Directly enhances sponsor sales and brand;
2)Cause-related marketing is a respected and accepted business practice;
3)Heightens customer loyalty;
4)Boosts a company’s public image and helps distinguish it from the competition offering materials a corporate PR officers;
5)Helps build employee morale and loyalty; and
Improves employee productivity, skills and teamwork

Risks:
1)Limit product promotion- When creating cause-based content, brands must consider whether to mix in product promotion.
The two don’t necessarily sit well together
2)Choose causes wisely- Brands must select causes that fit their values, and not simply jump on the bandwagon of topical issues
3)Accept mixed reactions- By definition, cause-related advertising links to issues people feel strongly about, so there will always
be people who disagree with the brand message. Ensuring authenticity should minimise negative backlash, but if brands
associate themselves with contentious topics they must be prepared for controversy

6
What metrics or indicators are pointing in a positive
direction that Pepsi Refresh Project will succeed?
Indicators pointing in the positive direction:
• Increase in purchase intent, awareness for brand involvement in
community and a brand that does good in world
• Positive brand health metric in terms of:
• Consideration to buy
• Desired brand
• Better taste than others
• Brand people can associate with
• Comfort of a favourite brand
• High quality brand

7
Thank You!!!