Tuesday, March 15

In Switch, Pepsi MakesDiet Cola Its New Flagship.
This story definitely has some juice in it. The catch is, will Pepsi follow it up in India as well or do a McDonald’s or KFC feeding Indians with fattened food, while tagging the calorie conscious westerners line by filling the retail line with diet variants

The next "Pepsi Generation" likely will be drinking diet cola.
In a major break with the traditional soft-drink hierarchy,
PepsiCo Inc. is making Diet Pepsi the star of the company's U.S. marketing efforts -- and trimming advertising spending on sugar-sweetened Pepsi-Cola. The move reflects the continued loss of fizz by Pepsi-Cola, which was invented in 1898 and is the second-biggest brand in the soft-drink aisle.
"We are treating Diet Pepsi as the flagship brand," says Dave Burwick, chief marketing officer for Pepsi-Cola North America. "It's a big step for us."
As part of the reordered priorities, Diet Pepsi will be marketed as a hip, cool brand for everyone, including teenagers and Baby Boomers. Meanwhile, Pepsi is narrowing its sales pitch for regular Pepsi-Cola to soda drinkers younger than 25, Latinos, African-Americans and sports fans.Pepsi says it plans to double its marketing spending on Diet Pepsi this year, while the budget for Pepsi-Cola will fall slightly. The company doesn't disclose figures, but TNS Media Intelligence says that means the company will spend more than $60 million this year on Diet Pepsi, while the budget for regular Pepsi will be below last year's $156 million. Regular Pepsi still has nearly double the U.S. market share of Diet Pepsi in volume terms, so the company isn't about to drastically cut its marketing of its main product.

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