PEPSICO: CAN PEPSI MAX ITS FIZZ?

BY:

NOOPUR GUPTA

RISHIKA SINGHAL

KANVA SHARMA

Overview

The case study talks about Pepsi MAX, launched in India in 2010. Zero calorie, No-Sugar Cola.

Debuted in UK and Italy in 1993. Pepsi MAX was launched to compete with Coke ZERO. Targets at 25-35 year old urban consumers as this group is

becoming more health conscious Segmented on the basis of geographic, demographic and

psychographic segmentation. Different from DIET PEPSI. Advertisement campaign, “Maximum Kick, No Sugar”. Aggressive pricing.

QUESTION’s

Explain the value proposition of Pepsi Max, detailing its target market, competitors, PoPs and PoDs ?

Points Of Parity(P.o.P):Product Packing Distribution Similar advertising style with laddish humourWide selection to fit every lifestyle of consumerBold, Refreshing , Robust ColaMale oriented

QUESTION’s Continued…Points Of Difference(P.o.D):PEPSI MAX High fructose cum syrup. Sugar. Coloring. Phosphoric acid. Caffeine. Citric acid and natural flavors. The taste is different as the ingredients are completely different.Forward thinking attitude. Image of being Action oriented.

QUESTION’s Continued…

Points of Difference(P.o.D):COKE ZERO

• Sugar.

• Caramel color.

• Caffeine.

• Phosphoric acid.

• Coca leaf and Kola nut extract, Lime extract.

• Flavoring mixture, Vanilla and Glycerin.

QUESTION’s Continued…

TARGET MARKET:The brand is targeted at 25- to 35-year-old consumers.Health-conscious people seeking healthier options.Focus with Pepsi Max is on men. VALUE PROPOSITION:Zero calorie soft drink. Increased caffeine content. Addition of ginseng.This combination gives Pepsi MAX an appeal of an energy

drink. 69 mg of caffeine in Pepsi Max as compared to 39mg in Pepsi

Diet.

QUESTION’s Continued…

The inclusion of ginseng, which is a Chinese natural herbal supplement used to promote better mental and physical function. 

Use of Ginseng:

i) Stress reduction.

ii) A nourishing stimulant.

iii) Helps in the treatment of type II Diabetes.Pepsi is pouring its largest investment into a new brand in a

decade - as much as $55 million – into Pepsi Max.

QUESTION’s Continued…

Develop Perceptual Map of the brand showing its position vis a vis other leading brands/variants in the Pepsi/Coke franchise.

Perceptual Map creates a more complete picture of the market and consumer’s perceptions. It also gives a guide to how the consumers tend to link/connect the various product attributes.

QUESTION’s Continued…

QUESTION’S Continued…

Matching of the Major Brand Offerings. Distinct Product Positioning. Unique Space. Gender Difference. New Products Becoming Popular. Gender Positioning. Connected to Health. Young Male Split. Non-Cola Advantage. Some Cannibalization likely possible.

THANK YOU.