Wednesday, November 26, 2008

The brand new face(s) of Pepsi ;-)

Pepsi announced that it is rejigging its brands at the Morgan Stanley Global consumer & retail conference last week. The key elements of the brand redesign and repositioning are:

  • New logos for all the Pepsi beverage brands which supposedly leverage Pepsi's design heritage, humanity, and simplicity. The logo re-design efforts are being led by Arnell Group (the same agency that re-branded Reebok as Rbk, and Donna Karan as DKNY).
  • Clear sub-segmentation of the hydration 'need state' into simple hydration (Aquafina), body wellness (Propel, SoBe), and performance hydration (G2, Gatorade). Pepsi seeks to expand ('democratize') the brand appeal of Gatorade from athletes to exercisers.
  • Repositioning of Tropicana for the breakfast occasion and Trop50 for calorie-conscious consumers
  • Targeting of Lipton and Tazo RTD teas at specific demographic and need sub-subsegments within the Nourish need state
  • Launching hybrids of the energy drink AMP (with tea, lemon) to incorporate consumer feedback of unfamiliar taste and lack of thirst-quenching in the Transform need state
I think these are bold moves that will revitalize the CSD market and well as position Pepsi well in the non-carbonated beverages market.

Some of the products launched by Pepsi recently are very notable (Diet Pepsi Max, flavored AMP variants). As a traditional Diet Coke fan, I was surprisingly attracted to the taste of Diet Pepsi Max. I personally witnessed a free sample promotion for Diet Pepsi Max outside Grand Central station in NYC in mid-October and the reviews appeared good. Pepsi has opened up a new segment in the CSD market by adding ginseng to cola. This will attract consumers who want a rush of energy with few calories at a price point below energy drinks.

The ball is now in Coca Cola's court...

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