PEPSI BLUE

……REFRESHING INDIA!!!

PROJECT BY:
PUJA GUHA
 ACKNOWLEDGEMENT

The project has been successful due to the support and

guidance of our batch co-coordinator Sir Subha Sundar

Mustafi who is also one of the faculties of THE NIS

ACADEMY. He helped me to understand the scope of the

project, and made this project successful. I am also very

grateful to all the peoples who helped me directly and

indirectly associated with my project work. Last but not the

least, the senior students of THE NIS ACADEMY helps me

most.
 OBJECTIVES

 To understand Pepsi Blue as a brand and its effectiveness in

creating brand awareness amongst customers.
 To understand the marketing strategy currently deployed by
Pepsi Blue in India.
 To gain a measure of the competition existing in the same
segment as Pepsi Blue.
 To reposition Pepsi Blue in order to strengthen, diversify and
build on market share and customer loyalty in India.
 INTRODUCTION

Pepsi is the third largest brand in the country in terms of consumer

spends. Pepsi is a carbonated beverage that is produced and
manufactured by PepsiCo. It is sold in retail stores, restaurants,
cinemas and from vending machines. The drink was first made in the
1890s by pharmacist Caleb Braham in New Bern, North Carolina. The
brand was trademarked on June 16, 1903. There have been many
Pepsi variants produced over the years since 1898, including Diet
Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi Max, Pepsi Free, Pepsi AM,
Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Holiday Spice, Pepsi Jazz
etc.
 HISTORY OF PEPSI BLUE
PepsiCo brought out a berry-flavored soft drink by the name Pepsi
Blue in mid 2002. It was discontinued in the US and Canada in 2004
but some countries still continue selling it. They created the berry
flavor after testing tastes of over a hundred other flavors over a nine
month long span to compete with rival Coca Cola’s Vanilla Coke. A
lot of drinkers said that the flavor o the Pepsi Blue was identical to
cotton candy with an aftertaste of berries. Some said it tasted like
raspberry and some said it was blueberries but Pepsi preferred to call
it just “berry” and it tasted much sweeter and more syrupy than
ordinary cola. The color of the drink came from Blue 1, a very
controversial coloring that had been banned in many countries.

Pepsi Blue contains Carbonated water, High fructose corn syrup

and/or Sugar, Citric acid, natural and artificial flavors, Phosphoric
acid, Potassium citrate, Potassium benzoate and Potassium sorbate
(to preserve freshness), Caffeine, Gum Arabic, Ascorbic acid and
Calcium disodium EDTA (to protect flavor), blue 1, red 40. It also
contains 25 mg of caffeine.
 PURPOSE TO LAUNCH

 The move to make a brightly-colored version of the flagship

Pepsi brand was boosted by 2001's introduction of Mountain
Dew Code Red, which had bumped PepsiCo's Mountain Dew
division sales up 6%
 It was launched to compete with Coca –cola’s Vanilla Coke
 The Indian Cricket Team was having a successful run after the
2003 Cricket World Cup. The color of their jersey was blue &
therefore PepsiCo attempted with Pepsi Blue to support the
team and its mega fan club
 MARKETING MIX-4p’s

PRODUCT:-

Pepsi came up with its new product called the Pepsi blue. A cool,
refreshing drink aiming at attaining the market.Pepsi Blue is a berry-
flavored soft drink produced by PepsiCo. It was launched in mid-
2002 and discontinued in the United States in 2004, although it
remains available in some other countries. Its berry flavor was the
result of taste-testing over 100 flavors over a 9-month period.
Designed to compete with Coca-Cola's Vanilla Coke, it is considered
by some to be the company's second equivalent of New Coke, after
the much maligned Crystal Pepsi. This drink with its unique
composition has all the requisite constituents to appeal to the market
and sweep away the masses from the other players operating in the
market. It serves as a revenue booster for the Pepsi cola and is a very
strong asset for the company and it has all the capabilities for making
it big in the consumer market of refreshments.
Price:-

 It was made available in 300 ml returnable glass bottles

Priced at Rs 8
 500 ml PET bottles, at Rs 15
 Non-returnable, 250-ml Pepsi bottles, priced at Rs 12 each
Place:-
Pepsi was very efficient in trying to accomplish the pre-launch
activities. However the Pepsi blue was not a success because of a
distribution system that was not very efficient. Unlike the distribution
system that has made Pepsi very acceptable with the consumers,
Pepsi blue failed to adopt such a distribution channel. The customers
were highly dissatisfied with the availability of Pepsi blue and this
was one of the strongest reasons for the product to have not done
well in the market.

Pepsi Blue was released in the following countries:-

1. India
2. Mexico
3. Panama
4. Colombia
5. Costa
6. Rica
7. Australia
8. New Zealand
9. Jamaica
10.Canada

PROMOTION:-
Although heavily promoted by PepsiCo (including advertisements by
the pop singer Britney Spears and the bands Sev and Papa Roach, as
well as in the movies The Italian Job and Garfield: The Movie), it is
widely seen as a commercial flop as sales remained low. Even with
the failure of Pepsi Blue, PepsiCo still managed to post double-digit
growth. Also, multiple groups claim to be "bringing back" Pepsi Blue,
But are so far unsuccessful.[1] Pepsi has since denied any plans to
bring back Pepsi Blue.

In Manila, Philippines, Pepsi Blue was sold for a limited time in late
2002 to commemorate the championship of the Ateneo Blue Eagles in
the UAAP.

Pepsi Blue was promoted after New York Mets games during the
summer of 2002, where the color blue was one of the symbolic colors
of the ball club. Other promotions included handing out free bottles
from a Pepsi Blue themed VW New Beetle at popular shopping
centers around the country. Jolt makes a similar beverage called Jolt
Blue CX2; a blue raspberry soda in a battery shaped metal can with a
flavor often describe as like that of cotton candy. Mountain Dew
Voltage also has a similar flavor {deemed the winner or nicest tasting
mountain dew by dew drinkers in the USA) {or date=August 2009}.
 SWOT ANALYSIS
Strength
*it has a very refreshing taste and serves to quench the thirst of the
consumers very well.
*its packaging is very attractive
*the quality of the drink was good
*Pepsi blue comes from the blanket of Pepsi, which is a very strong
brand in the beverage market. Thus the customers find a very strong
connection with brand and there is a very strong sense of quality
assurance that comes along with the product
*its very aggressive promotional efforts went a long way in creating
an impact on the customers mind

Weaknesses
* Sweet taste. People didn't like its sugary taste.
* People didn't like its blue color.
* Distribution channel wasn't good. So, it couldn't reach to the people
easily.
* It didn't taste like normal Pepsi so people found it tough to connect
with Pepsi blue.
Opportunities
* The beverage industry has a huge market
* The drink like “Pepsi blue” can cater very efficiently to the
young masses
* The young target forms the major part of the consumer market of
the country
*with the drinks prevalent in the market at this moment, the Pepsi
blue can bring a much required change of taste and bring a new taste
of refreshment.

Threats
*There are so many strong competitors in the market.
* Company should have used various measures to be able to stand in
the market.
 REASONS OF FAILURE

 The taste of Pepsi Blue was like cotton candy with a berry and
much more sugary and syrupy than regular cola
 It was tinted using Blue 1, a highly controversial coloring agent
banned in numerous countries at the time
 Sugary taste was not accepted by the consumers.
 REPOSITIONING OF PEPSI BLUE

STRAGIES USED:-

 Pepsi Blue could come up with the different taste than berry
flavor, i.e. strong fizzy cola to attract youth segment.
 Advertisements focusing on repositioning of Pepsi blue which
has eliminated the sugary taste factor.
 The taste should be immediately change, since its competitors
taking due advantage because of Pepsi’s sweeter taste.
 Moreover, Pepsi should start creating its awareness about
duplication of its products these days.

Revised marketing mix

1) Product
The Pepsi blue will have a navy blue color as contrasted to its
previous light blur color which did not do well in the market. The
taste of the beverage will also be balanced between a very fizzy and
strong drink and sweet syrup, like it tasted the last time. The
packaging of the product will also be of a very improved quality. Pet
bottles of 1.5 liters and 2 liters will be made available. Pepsi blue cans
would be available.
Its containment would be of 600ml.pet bottles would also be available
with 600 ml containment capacities. There would be a refreshing yet
a strong taste in the drink that would give the masses a new choice
and a new definition to beverage drinking.
 Pepsi blue can

PEPSI BLUE 600 ML BOTTLES

2) Price
The price of the Pepsi blue is kept at an affordable amount. The
pricing amount should be carefully looked into properly before re-
launching the product.
The pricing for the Pepsi blue will be as followed-
* 1.5 liters bottle- Rs 45
* 2 litres bottles – Rs 50
* 600 ml PET bottles – Rs 15
*600 ml cans – Rs 20
The price of Pepsi blue has been kept at a certain amount that is
easily approachable and attainable by the masses. Its ay par with
the others in the market and it provides an impetus to the product
to do better in the market.
3) Place

MANUFACTURER

DISTIBRUTOR

WHOLE SALER

RETAILER

CUSTOMER

The distribution channel that will be employed in the re-positioning

is going to very efficient and productive. The entire process starts
with the manufacturer. The product then passes on from there to the
distributor, wholesaler and finally the consumers. The main reason
for the products failure in the previous time was the inefficient
channel of distribution. However, this time the product will be
delivered to the retail shops and outlets in a very adept manner so
that the Pepsi blue is made available to the customers very easily and
very conveniently.

4) Promotion

*TEAM INDIA

Pepsi Blue will use a very strong and extensive usage of the
promotional process to create a connection of the product with the
people of the country. There will be an extensive use of the game of
cricket and the frenzy that surrounds it to promote the product. The
people of India are very passionate about the game of cricket and the
blue jersey symbolizing the Indian cricket team epitomizes the fervor
of the game. There will be a strong Endeavour to create a sense of
connection between the blue color of Pepsi and the color of the jersey
of the Indian cricket team.

TEAM INDIA and THE COLOUR “BLUE”

BRAND AMBASSADORS OF PEPSI BLUE
Team India and the color blue and its
Connection with Pepsi blue
 Launching activities:-

Pre launching activities: there are certain aspects that need to be

looked into before launching the product. The television
advertisements need to be aired at least 10 days in to the launch. A
countdown should be inculpated in the advertisement which
builds up to the day of launch of the product.
In addition to these efforts will also be made to see that the stocks
reach the retailers, before the date of launch of the product.
The advertisement should be able to make it clear to the masses
that this new drink offers a new degree of refreshment. The new
deep blue color of Pepsi blue and the new taste will save as a mode of
variety for the customers.

Launching day activities: all the THREE brand ambassadors of

Pepsi blue will be called in to launch the drink. An official launch of
the drink will be launched a week before the ill launches in its second
season.
There will also be a special attention given that day during the press
release of the product to let the media now about the ingredients of
the drink, its new colour, changed taste and its diet-conscious appeal.
 QUESTIONNAIRE

(1)HAVE YOU TASTED PEPSI BLUE BEFORE?

(a)YES (b) NO

(2)DO YOU LIKE THE COLOUR OF PEPSI BLUE?

(a)YES (b) NO

(3)DID YOU LIKE THE PREVIOUS TASTE OF PEPSI BLUE?

(a)YES (b) NO

(4)WHICH COLOUR WOULD YOU PREFER FOR PEPSI BLUE?

(a)DEEP BLUE (b) LIGHT BLUE

(c)BROWN (d) RED

(5)WHAT TATSE WOULD YOU PREFER?

(a)SWEET (b) STRONG

(c)SOUR (d) FIZZY

(6)WHO DOES U THINK SHOULD BE THE BRAND

AMBASSADOR OF PEPSI BLUE?
(a)SACHIN (b) SHAHRUKH KHAN

(c)DHONI (d)RANVIR KAPOOR

(7)WHATS YOUR FAVOURITE DRINK?

(a)PEPSI (b)COCA-COLA
(8)WHATS DID YOU LOOK FOR IN A BEVERAGE?
(a)TASTE (b) REFRESHMENT
(c)DIET CONSCIOUS

(9)WOULD YOU LIKE TO GET A DRINK THAT’S DEEP BLUE IN

COLOUR?
(a)YES (b) NO

(10)DID YOU LIKE THE PACKAGING OF PEPSI BLUE THE

PREVIOUS TIME?
(a)YES (b) NO

(11)WERE YOU HAPPY WITH THE AVAILABILITY OF THE

PEPSI BLUE BOTTLE?
(a)YES (b) NO

(12)ARE YOU HAPPY WITH THE ALTERNATIVES OF

BEVERAGES AVAILABLE IN THE MARKET NOW?
(a)YES (b) NO
 Pictorial representation of the data

(1) The pie chart showing the number of people who have tasted or
not tasted Pepsi blue (yes-35%, no-75%)

(2) The bar graph depicting the number of people who liked and
disliked the previous colour of Pepsi blue (yes-25%, no-75%)
(3) The pyramid chart shows the percentage of people who liked or
disliked the previous taste of Pepsi blue. (Liked-41%, disliked-59%)

(4) The cylinder chart shows the percentage of people who have
given their take on the color of Pepsi that they would like to taste
(deep blue-50%, red-22%, brown-18%, light blue-10%)
(5) This diagram depicts the taste that the customers would like to
have in Pepsi-blue (sweet-15%, strong-41%, sour-14%, fizzy-30%)

(6) This chart shows the choice of the people when it comes to
choosing the brand ambassador for Pepsi blue (rangier kapoor-23%,
ms dhoni-30%, sachin tendulkar-37%, abhinav bindra-10%)
(7) The chart depicts the brand that they prefer more (pepsi-53%,
coke-47%)

(8) The chart shows the traits that the customers look for in a
beverage (taste-38%, refreshment-40%, diet conscious-22%)
(9) This chart depicts the people’s response to the question whether
they would accept a blue colored drink (yes-60%, no-40%)

(10) This chart shows whether the people were satisfied with the
packaging of Pepsi blue the previous time (yes-72%, 28%)
(11) The chart shows the customers satisfaction or dissatisfaction
level with the availability of Pepsi blue the previous time (yes-24%,
no-76%)

(12) This chart shows whether the customers are satisfied with the
existing brands of beverage or not (yes-52%, no-48%)
 DATA INTERPRETATION FROM THE
CHARTS

*most of the people did not taste Pepsi blue the previous time
*they were dissatisfied with the previous color of Pepsi blue
*there was a strong sense of dissatisfaction among the people with
the availability of Pepsi blue
*the people were not happy with the taste
*the people are open to a new drink to enter the beverage industry
*they were happy with the packaging of the bottles
*the survey even reveals that they would be most open to accepting a
“deep blue coloured”drink
*the people have stated that they look for refreshment as the
strongest asset in a soft drink
*the people gave their verdict that they prefer Pepsi to coke as a
brand at the present moment
*they would want a drink that is stronger and more powerful. Sweet
syrup is not what they are looking for
*the people have shown that they would be happier to have someone
as a dhoni or a tendulkar than any film actor as the brand
ambassador of Pepsi blue