Pepsi One (Case #38, Notes)
Case Notes
1. Address the following issues regarding market positioning and segmentation.
• What market positioning and segmentation strategy has PepsiCo chosen in this case?
• How does this approach influence the marketing mix decisions for Pepsi One/Pepsi Max?
• To what degree is the soft drink industry able to standardize products and marketing mix elements on a global basis?
2. "Pepsi core displays will include Pepsi, Mt Dew, Diet Pepsi and Pepsi One," says Philip Marineau, CEO Pepsi North America. Pepsi One will be treated as a Pepsi core brand and it will be sold everywhere the other core brands are available. Will Pepsi One take away market share from Diet Pepsi or will it generate more revenues and increase the market share for PepsiCo? Given the limited amount of fountains, shelf space and vending machines, how can Pepsi effectively manage two products in the diet soft drink market?
3. "We'd be thrilled if consumers just call it 'One,' " says Steve Fund, director of marketing for Pepsi-Cola. What are the possible reasons why Pepsi wants to de-emphasize the corporate brand name "Pepsi" for this new product? How can Pepsi One still enhance the corporate brand image of Pepsi?
Discussion Questions
(1) International Positioning and Segmentation:
• What international positioning and segmentation strategy has PepsiCo chosen in this case?
• How does this approach influence the marketing mix decisions for Pepsi One/Pepsi Max?
• To what degree is the soft drink industry able to standardize products and marketing mix elements on a global basis?
(2) Cannibalization Issues:
"Pepsi core displays will include Pepsi, Mt Dew, Diet Pepsi and Pepsi One," says Philip Marineau, CEO Pepsi North America. Pepsi One will be treated as a Pepsi core brand and it will be sold everywhere the other core brands are available.
• Will Pepsi One take away market share from Diet Pepsi or will it generate more revenues and increase the market share for PepsiCo?
• Given the limited amount of fountains, shelf space and vending machines, how can Pepsi effectively manage two products in the diet soft drink market?
(3) Corporate Branding:
"We'd be thrilled if consumers just call it 'One,' " says Steve Fund, director of marketing for Pepsi-Cola.
• What are the possible reasons why Pepsi wants to de-emphasize the corporate brand name "Pepsi" for this new product?
• How can Pepsi One still enhance the corporate brand image of Pepsi?