This is one example, as part of its marketing strategy to completely remake its image, logo, and design, of how Pepsi thinks that this type of placement will allow them to relate to the audience better.
Coca-Cola has launched its new "Open Happiness" campaign as an integral keystone to its new marketing strategy for 2009. Much like Pepsi, the campaign is connecting the brand with key target audiences; teens and moms, driving recruitment and retention. As part of the Open Happiness campaign, Coke released a single by the same name on iTunes. According to Coca-Cola executives, the single has reached over 400,000 plays on MySpace Music.
Coca-Cola executives said the campaign is an evolution of the "Coke Side of Life," a theme adopted by the Atlanta-based beverage giant in 2006.
Open Happiness, which has been in the works since early last year, is designed to tighten the focus on the Coke Side of Life theme according to Joe Tripodi, Coca-Cola chief marketing and commercial leadership officer. It's also intended as a call to action, inviting people to pause and drink a Coke. (Collier, 2009)
"It's really a statement about the little simple joys," Tripodi said. "Our brand isn't here to solve world peace or fix the economy. We represent a small moment or small pleasure in a sometimes very stressful or difficult day for people" (Collier, 2009).
Effectiveness of Coke and Pepsi Strategies
After decades of growth, U.S. carbonated soft drink sales have fallen for the past three years as some consumers opt for bottled teas, coffees, juices or energy drinks, and many others cut back altogether.
According to Beverage Digest, sales of Coca-Cola fell 4.4% in the first nine months of 2008, while Pepsi-Cola sales fell 6.6%. Category sales fell 4.8%.
Beverage Digest tracks sales at convenience, grocery and drug stores but does not include sales from Wal-Mart.
The stocks have been more mixed than the businesses, with the market liking Pepsi more than it has liked Coke. Pepsi stock has held up much better than...
The market likes the diversity of Pepsi's snack line along with the beverages, and it sees more international success ahead for the snack giant as it continues to expand its global reach.
The bottom line is that it's too early to tell regarding Coke's and Pepsi's latest marketing strategies. Both companies are almost holding market share, but cash flow statements show that both didn't do as well as they had predicted.
Overall, Coke dropped their market share about 1%, while Pepsi lost about a half point. The good news is that their new marketing campaigns have created some "buzz" in the market, and, according to experts, if the economy wasn't the way it is, those numbers might be better.
Bibliography
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Collier, J.G. (2009, January 22). Coke announces 'open happiness' campaign. Retrieved May 21, 2009, from ajc.com: http://www.ajc.com/business/content/business/coke/stories/2009/01/21/coke_ad_campaign.html
Helm, B. (2009, April 23). Blowing up pepsi. Retrieved May 20, 2009, from Businessweek.com: http://www.businessweek.com/magazine/content/09_17/b4128032006687.htm?campaign_id=rss_innovate
Kenney, B. (2007, August 16). PepsiCo inc.: Coming clean. Retrieved May 20, 2009, from Industryweek.com: http://www.industryweek.com/articles/pepsico_inc-_coming_clean_14811.aspx?Page=2
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