Individual case analysis framework and methods

Pepsi Problem

In this case, Pepsi is under scrutiny because of some allegations that an ad campaign of their brand Mountain Dew were offensive. An aggressive marketing agent for Mountain Dew had recently created a unique ad campaign that may have used some urban or racial themes in the context of the commercial. The commercials may depict violence and crime within the black community if interpreted in that manner. As a result of this maneuver, the impossibly to define " racial argument " was suggested by a professor who was eager to demonstrate his personal lines of decency in an overtly political matter. Despite the ridiculousness of the accusations, it appears that Pepsi Co. may need to react to this recent charge: that unless reparations are made regarding a Mountain Dew commercial depicting a fictitious goat, millions of dollars are at risk due to a negative public relations campaign against the company.

Analysis

The core issues at stake is the attitudes that consumers have towards Pepsi Co and its subsidiaries. Abiding by social norms are secondary concerns in this case, as Pepsi's goal is to make money and gain market share. That is not to say that a racial backlash may be what this company needs, it may or may not depending on other circumstances, regardless this is a subsidiary issue in the case. All criteria involved in this decision should be based on the ability for Pepsi CO to maintain a competitive advantage and dominate the market.

To fully grasp the totality of this case study it is very necessary to compile useful information and analyze it. A SWOT model can help this process by outlining key and important internal and external factors that surely affect the organization's ability to promote a competitive advantage within their soft drink industry that brings in billions of dollars a year and provides thousands of others employment and a living wage despite the healthfulness of their products and methods.

SWOT

Internal Strengths: Billions of dollars in reserve capital. A world wide brand name. An addictive line of products.

Internal Weakness: The sheer size of the company makes it a target. Product is generally bad for people. Caffeine is a drug. Many competitors. Corporate espionage.

External Opportunities: The consuming public is highly suggestive. Competition relies on having a foe to build support for their own brand. Pepsi should be in more places such as churches, schools and all public places.

External Threat: Coke and others want more market share. Fascist moralists such as Watkins need to project their own inadequacies and inefficiencies on a public figure like Pepsi Co.

Alternatives

While Pepsi Co has an unlimited amount of alternatives and choices, this essay will supply two of the most favorable options. The first option is that Pepsi should simply ignore the criticism of Dr. Watkins and his bloviated and self-righteous standpoint. His argument is filled with logical fallacies and demonstrates danger when "professional academics" are allowed to comment on such important topics such as business marketing. Simply ignoring the criticism and continuing on as of this is not any real threat is a practical and useful alternative that demonstrates that Pepsi is taking the moral high ground on this issue by not commenting. This is a conservative and defensive posture that would have a desired effect of limiting the validity of Watkins' argument.

The next alternative is a more aggressive tactic but has the potential of reaching an even larger market share. This alternative would have Pepsi Co. embrace the racial stereotypes themselves and commence a new argument celebrating race and diversity as opposed to streamlining it as Watkins would suggest is the decent thing to do. Too often race has been discounted and used as a divisive technique to separate people with each other. Pepsi Co should embrace its customer base that realizes that the differences in race and culture is what makes life and society fun and interesting. For a long time, marketing approaches have used a one size fits all method in its attempts. There should no problem in Pepsi targeting racial demographics and celebrating the things that make the many races different and interesting.

Recommendations and Conclusions