Okay, so recently I read a pretty good article in Brandweek about certain brands gaining strength, without it immediately be reflected by marketshare.
Interesting. It got me thinking about Pepsi and Coke and what’s going on within the CSD market right now. It’s no shock to anyone that today’s Millennials’ are all about change and experimentation. -Nothing new there. Each generation goes through this process of trying on and discarding different things as they discover self. And the previous generation actually helped invent ALT bev as a category.
What is interesting to me is the for the first time within the past two generations (really one, Gen X at tip and tail I think are a bit different) Pepsi is being seen as a legitimate choice to Coke. More than that actually. It seems that Pepsi is being looked at in a different light. So it seems that Pepsi is being perceived not so much as just a cola, but more as a
drink unto itself.
Now, of course Coke has the lion’s share of marketshare on a global basis as well as on a States one. But nonetheless, Coke seems to be continually dropping the ball on advertising as well as new product launch (remember Coke with lime?). -And almost apologizing for being a CSD.
Take for example the latest launch of Coke BLAK. There was no real explanation of what the beverage was, nor the usage occasion. Consumers were left to figure out, around the shadowy marketing, that it was I guess, an energy drink. -And, I also guess, that was the reason that it cost almost three times the amount as Coke. Weird.
Here’s where I think the Gospel is made: I overheard two kids in my local sandwich shop debating this new product. One stated, “Yeah, it’s like if you mixed Starbucks with Red Bull.” –just what you want as a marketer: your brand (the most recognized and recalled brand on the planet, btw) being defined by two other brands -both competitors. One kid said to the other in Mikey-like tone: “did you try it?” and with that the first kid said “No, it looks too old or something.” And then slid open the visi cooler and grabbed a Pepsi.
It seems like Pepsi is easier to understand.
I think Pepsi on the other hand is viewed as an evergreen brand. Always trying something new. Always in touch with the times. Don’t get me wrong here, Pepsi certainly has done its’ share of eroding any kind of brand loyalty in the past with their schizophrenic positionings’ and messagings’ to the choice of new/next etc generations and trying to buy their way into cool by hiring the latest new pop icon to sell product.
But for some reason, maybe because of our limited memory, Pepsi seems to be a “clean” brand right now. There seems to be a feeling of pride coming from that packaging. It looks suddenly, well, refreshing.
And after all is said and done, isn’t that what a cola is supposed to be?
Joe Sequenzia
Senior Partner, CEO