Pepsi Refresh Project Essay

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Executive Summary: A stock analyst, who is conducting a study of the North American carbonated soft drinks industry, is evaluating the impact of Pepsi’s refresh project (PRP). Pepsi has a long history with its main competitor, Coca-Cola, and they are competing against each other to steal market share in an oligopoly market. CSD market depends purely on marketing strategy to win market share, and Pepsi needs a new innovative marketing strategy to overturn its decreasing sales trend and stock price. To improve the current status, Pepsi introduced a new social media marketing program called Pepsi’s refresh project. With the introduction of PRP, Pepsi boldly stated its confidence in PRP and announced to stop its Super Bowl advertisement. Pepsi aimed to win youth segment’s attention by appealing positive brand image with PRP. With abundant marketing budget, Pepsi quickly caught attention of millions of people and succeeded in improving its brand image; however, CPM of PRP is far from being an efficient marketing strategy and PRP’s contribution in market share is questionable. Despite the success in creating a new social media marketing platform, PRP alone is not enough to beat Coca-Cola’s aggressive marketing, and CSD market still covers a huge portion of beverage market to reduce marketing budget. In 2010, Super Bowl advertisement only equaled to 2.06 percent of the net income from CSD sales. Meaning revenue from gaining market share far exceeds the marketing expenses. Pepsi is in a desperate position to improve its market share; therefore, Pepsi needs to be aggressive and engage in all marketing activities to improve its current position. Problem Statement: A stock analyst, who is conducting a study of the North American carbonated soft drinks industry, is evaluating the impact of Pepsi’s refresh project (PRP) on public perception and its promotional value.

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