Question 1
Decide whether Pepsi should continue the Pepsi Refresh Project. Why or Why not?
Pepsi Refresh Project has been one of the most unique and interesting type of cause marketing taken up by the company. The idea behind Refresh Project is to contribute towards making the earth a better planet to live for those who are suffering in one form or the other. We understand that people living in this world have a good heart and they want to do something better for the society and for those who deserve good things in life but cannot afford it. For instance, there are many people who wish to establish an old homes and special shelter houses for poor and stray animals but are unable to do so because of lack of funds. People also wish to explore the natural resources so that they can play their part in energy conservation as well as reduce the levels of pollution in the atmosphere. Pepsi has realized that it must play its role in the improvement of the environment and society in particular (Norton & Avery, 2013).
The concept of Pepsi Refresh Project is aimed at refreshing the world by carrying out small tasks so that it can re-breathe and look brighter and chirpier than before. When Pepsi launched the Pepsi Refresh Project, it received an outstanding response from people all across the globe. People joined the cause and shared their ideas for making the world a better and refreshed place. The ideas which received more voting via social media received estimated funding from Pepsi and the company and its associates helped them in the execution and successful implementation of their projects. The budget Pepsi allocated for this project was what it invests in the advertising campaign for Superbowl games. I believe Pepsi should continue the Pepsi Refresh Project but with changes. For instance, customers see Pepsi as a fizzy drink which is linked with fun and enjoyment and theyhave never related Pepsi with a serious cause. The perception of customers needs to be changed in this regard. Plus, Pepsi does not make use of social media much to promote its drinks so the use of social media needs to be limited.
Question 2:
If Pepsi continues the Pepsi Refresh Project, which changes should be made?
Pepsi is carrying out marketing for a cause so it should not step back from this initiative. However, keeping the current perception and positioning of the fizzy drink into consideration, Pepsi must take measures to bring some significant changes within the execution of this project. It was seen that Pepsi undertook the Pepsi Refresh Project for the purpose of increasing its sales revenues. In the beginning, the sales of Pepsi increased as customers developed positive feelings about the brand and some even preferred to drink it over Coca-Cola. But after some months, the sales volume started to decline. This is because Pepsi got a little too serious in its marketing campaign. The overall image of Pepsi in the eyes of customers was supposed to be linked to fun, enjoyment, and simplicity. The change in the overall marketing image of Pepsi needs to be taken significantly so that the image distortion in the eyes of customers can be prevented.
Moreover, Pepsi Refresh Project has made use of social media to promote its cause-based marketing campaign. Pepsi is that beverage which has never really relied on social media for carrying out its marketing and promotional activities. Too much dependence of Pepsi on social media has made customers question about the marketing tricks Pepsi is playing beyond social media and the new Refresh Project. So limiting the use of social media for marketing of the new Pepsi Refresh Project and informing the customers through advertisements and newsletters that Pepsi cares for the environment and well-being of society apart from its brand perception can help in stabilizing the profits.
Question 3:
What criteria would you recommend be utilized to determine the value of things like Facebook fans, Twitter followers and the billions of impressions generated?
As the hype of social media is being increased, people value brands more when they have a strong presence on social media. Nowadays, every person has a smartphone and tablet through which they have developed a strong social network. People spend more of their free time on sharing their messages, feelings, and emotions through social media such as Facebook and Twitter. Social media is also frequently used by marketers to create awareness of their products and services. We have seen from the given case the within hours and days of launching the Pepsi Refresh Project, the number of Facebook friends and Twitter users increased as well the viewership of Pepsi Refresh Project ads and ideas also rose up. So when a number of social media users show strong figures for a promotional campaign, it is quite right to assume that the campaign would be successful as it has gained positive response from the end users.
Saravanakumar & SuganthaLakshmi (2012) presented the idea that social media has become an essential part of our lives. Marketers make the most of the social media to generate awareness and gain acceptance of their products and services. The criteria for measuring the success of any brand is dependent on its sales volume or profitable financial statements as well as the number of people who like, share and talk about the brand on social media platforms such as Facebook, Twitter, Youtube and several others. When Pepsi came up with the idea of Pepsi Refresh Project, it got a great response from social media and choosing this trend as criteria for success, Pepsi depended on it.
Question 4:
Do you agree with Pepsi’s decision not to advertise in the 2010 Super Bowl? Why or Why not? Did they gain by shifting traditional advertising to Pepsi Refresh?
Pepsi has been advertising for Super Bowl for over twenty-five years. Pepsi has been the official sponsor for Super Bowl but in the year 2009, it was decided by the senior management of Pepsi that they wish to spend the budget allocated for the games towards a noble cause. This cause was based on the idea that Pepsi would donate the budget of twenty-five thousand dollars which it spends on Super Bowl each year into projects which are aimed at the protection of the world and well being of the society. So Pepsi announced its project titles Pepsi Refresh Project. Pepsi did not want to suggest ideas itself but it engaged the general public in the campaign and asked them to suggest project ideas which they think are important to the society. Within days of launching the campaign, people responded with creative and responsible ideas such that it became challenging for the team at Pepsi to pick projects for implementation. So they asked people to vote for ideas which they think are more feasible, practical and if implemented, can bring a change in the lives of common people. In order to make the campaign more effective, celebrities were engaged where they executed projects for the welfare of the society and preservation of the environment.
Pepsi has the primary goal of increasing its sales revenues and with the aim of achieving the defined objective, Pepsi preferred cause marketing over sponsoring the famous event of Super Bowl. This is because Pepsi wants to gain the attention of customers while playing its role in a good cause.
The reading has shown that although Pepsi tried to make the most of the cause marketing to increase its sales but the actual results revealed that sales decline. This is because the image of Pepsi in the mind of the target market is not related to serious campaigns such as the Pepsi Refresh Project. Although the step of not sponsoring Super Bowl and carrying out the Refresh Project was based on good marketing strategy but the results were not as fruitful as expected. It is believed that Pepsi would not continue investing in the Refresh Project as it has not yielded better results. The projects executed by Pepsi as part of this campaign has left people in emotions and tears and this serious kind of the image is not what people have been associating Pepsi over all these decades. Moreover, Pepsi has always relied on the traditional marketing campaigns and the switching over to social media for gaining popularity has also contributed to the decline in sales volume. Either Pepsi would work on changing the perception of customers about the drink or it would continue to stick to conventional methods of advertisement and sponsorship of Super Bowl to retain brand equity.
Question 5:
Is Pepsi the right brand for a cause marketing program like Pepsi Refresh?
Smith & Alcorn (1991) mentioned that a cause marketing campaign can be carried out by any organization which wishes to increase its profits and sales volume by promoting a good cause which can benefit the society and the environment. Cause marketing is mostly taken up by those organisations which have a serious theme or they are into offering significantly serious products such as those related to healthcare or safety. Pepsi is a fizzy drink which holds quite a light and refreshing image. People who enjoy Pepsi link its image to enjoyment and excitement. Linking the current image to cause marketing campaigns which are based on serious messages is not quite appropriate for Pepsi. Although the initial response Pepsi received from the customers was quite overwhelming as people were getting involved in the Pepsi Refresh Project and were having very positive views about Pepsi but the increase in sales was not directly proportional to the customers’ response. This was because the cause marketing campaign was not in line with the brand perception. The idea of Pepsi Refresh Project has been a good one but practically speaking, the idea did not yield fruitful results for the brand which has always been known for its fun loving and exciting personality. In order to succeed in the market, organizations must take up those marketing campaigns which are in line with their brand perception and overall brand image. This is because brand image once built in the eyes of customers is not easy to change or modify. So whenever marketing efforts are taken up to develop a brand image, special care is taken that the brand image is communicated carefully by considering the characteristics of the target market and the ultimate objectives of the organization (Park, Jaworski & Maclnnis, 1986). The brand image once accepted by customers is difficult and quite challenging to change and efforts aimed at doing so are not always fruitful as we have seen in the case of Pepsi.
References
Norton, M. I., & Avery, J. (2013). The Pepsi Refresh Project: A Thirst for Change. Harvard Business School Marketing Unit Case, (512-018).
Park, C. W., Jaworski, B. J., & Maclnnis, D. J. (1986). Strategic brand concept-image management. The Journal of Marketing, 135-145.
Saravanakumar, M., & SuganthaLakshmi, T. (2012). Social media marketing.Life Science Journal, 9(4), 4444-4451.
Smith, S. M., & Alcorn, D. S. (1991). Cause marketing: a new direction in the marketing of corporate responsibility. Journal of Consumer Marketing,8(3), 19-35.
