The new Pepsi

By: ispeculatornew
Date posted: 06.01.2009 (5:00 am) | Write a Comment  (3 Comments)

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pepsiWhat is a company to do when its ultimate competition is “the classic”, the one and only brand that has been at the top of its market since its market came to life? That is the question Pepsi marketing employees ask themselves every single day as they try to win a few points of market share every year.  To a large extent, Pepsi continues to do that and now enjoys over 30% of the market share, still shy of Coca-Cola’s 42%, but still a very solid second.

It’s always a risky move when you have such a market share to change your image dramatically as you can suffer and end up on the losing side. But I admire Pepsi’s recent marketing efforts. Simply look at this new can and you will notice a look that looks very “futurist”. You might like it or not (I personally do), but it does reinforce the image of a “new” Pepsi. And visit their website, the first thing you will notice is links to their Youtube channel, the Pepsi Facebook page and so on.  Compare that to the Coca-Cola page and while the design of Coca-Cola(KO) is not that classic, it clearly seems to lack the features that its competitor has.

Will it translate into more sales? That is of course the million dollar page and one where it is difficult even in this era of technology and data to get right. So many factors come into play. And while you might be tempted to look into the stocks of the two companies to evaluate which soft drink is doing better, it is more complex than you would think. Coca-Cola(KO is +8,58% YTD)  has outpeformed Pepsi (PEP is -4,96% YTD) but as these companies have evolved, they have became so much more than a one drink company. Both have important distribution networks and produce almost every type of liquid from very simple ones such as water to more evolved energy drinks that fit different target markets.

Oh and in case you were wondering, Pepsi’s new “hip” website is getting 49% more visitors than a year ago while Coca-Cola is up 11% (according to Compete.com), which is certainly one area where Pepsi’s innovation strategy is paying off.  I would say that if you included Pepsi’s online presence on websites such as Facebook and Youtube, it is easy to imagine how Pepsi will be able to use the internet to market its product and reach its customers, something Coca-Cola seems years behind at the moment… I for one would bet that will be paying off very soon!

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3 Comments

  1. Comment by Simpless — June 2, 2009 @ 6:56 am

    Personally, I am indifferent between Pepsi and Coke. But I like the Pepsi’ new look. The new logo is slick and coool. The website has lots of color and features. ok I’m not into the mixing music thing, but I found it entertaining. 49% more visitors, that’s a good increase! Good job Pepsi marketers!

  2. Comment by IS — June 2, 2009 @ 9:01 pm

    And entertaining is what they are looking for. I don’t think they’d ever expect someone to switch simply by seeing their new image.. but a slight change in opinion can go a long way already..

  3. Comment by Optimist — June 15, 2009 @ 10:31 pm

    One reason for decreased sales is the current boycott of Pepsi products due to the company pushing the homosexual agenda. Hey, it helped me break a 20 year, 4 Dew a day habit. I am back to Coke and others. What a shame that they can’t simply sell product and stay neutral in the culture war.

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