Premium Essay

Pepsi Lipton and Brisk

In: Business and Management

Submitted By irfanusrat
Words 666
Pages 3
Question: Should Brisk be advertised on prime time TV or with viral ads in the month following the Super Bowl ad? Why?
Answer:
Background:
Mekanism (new digital media advertising agency hired by PLP) was tasked to work on re launch of Brisk Iced tea, a RTD (ready to drink) tea brand which was launched in mid-1990s by PLP (Pepsi Lipton Tea Partnership) and had its glory in 90s and later became stagnant.
Brisk’s first major advertising campaign was launched in 1996, was a series of television and print ads featuring clay based animation versions of iconic characters and celebrities. After Brisk campaign wrapped up in 2002, PLP stopped investing in mainstream advertising, opting to support its core brand, Lipton.
PLP decided to invest heavily in promotion of this brand in 2011. Judgement:
PLP should go for viral ad and below are supporting reasons in importance order: * While Brisk’s sales were growing, the brand was falling behind its competitor in terms of its social media presence. Mekanism concluded from one study comparing social media campaigns that Brisk was practically absent from this space (Exhibit 5) * Table A below displays sales and market shares from 2007-2010. It’s to be noted here, Brisk sales were growing fast with minimal consumer oriented promotion was done in this period with the exception of package redesign, POS display and other trade promotion activity

* For fiscal ending May 2010, Brisk was 3rd in rank and it’s sales volume growth was 34.4% compared to last year without major traditional media advertising done by Brisk and it’s main competitor “Arizona”. The major categories of promotional spending had been trade and consumer promotion. So it’s clear that TV ads are not translating into sales (visible in Exhibit 4 below). Arizona and Brisk are market leaders but their TV/Radio Ad spending is least (nil in case of...

Similar Documents

Premium Essay

Pepsi Lipton Brisk

...TEIXEIRA ALISON CAVERLY Pepsi-Lipton Brisk In September 2010, Mary Barnard and Marisol Tamaro returned to their offices at Pepsi Headquarters after a meeting with their new advertising agency. Mekanism had just been hired to work on the re-launch of Brisk Iced Tea, a brand that had had its glory days in the ‘90’s and later had become stagnant. As of 2009, Brisk sales were rising and it attained a 10% market share in the fast growing ready-to-drink tea category, despite having virtually no advertising support. Pepsi decided that it would start investing heavily in the brand in 2011. To start off the year, a spot had been purchased for a Brisk ad to be shown during the Super Bowl, in early February. What Barnard and Tamaro needed to decide was how to carry the advertising momentum in the months following the most viewed sports event in American television. Should they stick with advertising on TV or try out a viral advertising approach in social media? Their budget wouldn’t allow for both media to be used. Barnard, Vice President at PepsiCo and the General Manager of the Pepsi-Lipton Tea Partnership (PLP), owner of Brisk, was in charge of the final decision and conferred with Tamaro, Brand Building Director for Brisk, on what to do. PepsiCo was the second largest food and beverage company in the world. So at $340 million in net revenues in 2009-10, PLP seemed like a drop in the ocean compared to the $10 billion1 from its holding company, the Pepsi Americas Beverages......

Words: 8955 - Pages: 36

Free Essay

Pepsi-Lipton-Brisk

...WHY AND HOW VIRAL ADVERTISEMENT THROUGH MEKASIM IS A GOOD CHOICE: 1. From exhibit 8 it is clear that Consumer time Spending with Internet is 28% and rising vs amount of advertising spending by TV ? media is far less which is 13% . 2. Millennials knew little else about the Brisk brand and what it stood for – so WORD OF MOUTH is a powerful approach to selling a fastest growing product to this audience. Also finding and sharing funny videos, music and other forms of entertaining content online had become an important online activity among millennials hence on social media male millennials and Hispanics were targeted. 3. Social media like Facebook, Twitter, U tube would be very powerful mediums to promote the brand and to increase its share of market by reaching to large number of audiences. 4. By the end of 2010, a study had found that 50% of viewers reported skipping through most of the ads while watching TV programs compared to 29% when watching online video ads. 5. By considering all above points a more appealing option of advertiser is Viral Advertising. Brands could take advantage of unpaid exposure by posting ads to social network sites like facebook and twitter , for little more than the cost of production. Once an ad was posted, the hope was that with some promotional activity it will spread quickly or virally, If an online video was widely shared, it might end up reaching larger and more targeted audiences than TV ads, at the fraction of cost. 6. Studies......

Words: 431 - Pages: 2

Premium Essay

Pepsi-Lipton Brisk Case Study

...1.  Should Brisk be advertised on primetime TV or with viral ads in the months following the Super Bowl ad? What are the benefits of each media? What are the costs? Viral ads Benefits: It could reach a larger and more targeted audience; It could save money for costing little more than the cost of production; It could offer the potential for higher levels of consumer engagement with the brand, for the viral ads' interactivity and source from acquaintances. Costs: The viral success was the exception; It was difficult to predict which video would be widely viewed and shared. TV: Benefits: 1. As the major mass media, TV could deliver a larger number of ad impressions and its economics was well-understood. 2. The major source of the millennial was still television. Costs: 1. The quality of TV’s impression cannot be guaranteed because viewers often consumed the ads passively or avoided most of them. 2. TV ads are much more expensive; I think Brisk should choose the viral ads following the Super Bowl ad. 1. One of Brisk Campaign’s goals is to increase its fan base on sites like Facebook and Youtube, building an online presence to rival those of its competitors. 2. Viral ads are cheaper, and the budget is limited. 3. The Super Bowl ad could help Brisk rebuild brand awareness, and it is viral ads to help increase brand interaction and preference with consumers. 4. Young people more responded to something with the feature of......

Words: 599 - Pages: 3

Free Essay

Brisk Case

...Pepsi-Lipton Brisk En setiembre del 2010, Mary Barnard y Marisol Tamaro regresaron a sus oficinas en la sede de PepsiCo después de una reunión con su nueva agencia de publicidad. Acababan de contratar a Mekanism para trabajar en el relanzamiento de Brisk Iced Tea, una marca que habían tenido sus días de gloria en los años 90 y se había estancado. En el 2009, las ventas de Brisk comenzaron a subir, y alcanzaron una cuota de mercado del 10% en la categoría de rápido crecimiento de té listo para beber, a pesar de prácticamente no haber tenido ningún apoyo publicitario. Pepsi decidió que empezaría a invertir fuertemente en la marca en el 2011. Para comenzar el año, había comprado un espacio para mostrar un anuncio de Brisk durante el Super Bowl en los inicios de Febrero. Lo que Bernard y Tamaro necesitaban era decidir como continuar el impulso de publicidad en los meses posteriores al evento deportivo más visto en la televisión estadounidense. ¿Deben seguir con la publicidad en la televisión o probar un enfoque de " publicidad viral " en medios sociales? Su presupuesto no les permitiría utilizar ambos medios. Barnard, vicepresidente de PepsiCo y gerente general de la Pepsi-LIpton Tea Partnership (PLP), propietaria de Brisk, estaba a cargo de la decisión final y consultó con Tamaro , director de construcción de marca para Brisk , acerca de qué hacer. PepsiCo era la segunda mayor compañía de alimentos y bebidas en el mundo. Así que los $340 millones de ingresos netos de PLP......

Words: 6356 - Pages: 26

Premium Essay

Pepsi Lipton

...BRISK® CASE STUDY Overview Customer Profile The Pepsi-Lipton Partnership is a joint endeavor between two major brands, Pepsi-Cola North America and Unilever. This entity is responsible for the Canadian promotions of Lipton, one of the leading beverages in the global market. Business Situation The company launched an entirely new Brisk® Ready-to-Drink Iced Tea early last year. The brand recognized the emerging presence of a new media segment and required assistance in exploring the potential of direct-client communication using Mobile and Web technology. Addictive Mobile Corp. Solution Addictive Mobile Corp. combined marketing savvy with their licensed technology to design and power a Txt 2 Win Contest campaign, “Beat the Blues with Brisk®”. The promotion incorporated both web and mobile mediums to enhance customer experience. 1 Benefits Brisk® gained the ability to offer contestants premium web and mobile content while providing an amusing, interactive and instantaneous entry method. This trend setting use of wireless technologies created a consumer buzz while allowing the brand to track promotional results in real-time. PROFESSIONAL SOLUTION Traditional media assisted in forming initial contest awareness with high school party announcements, beverage cooler stickers and high traffic website banners. Consumers were informed they could enter the Brisk® contest for chances to win a grand prize and one of the weekly draws, 1001 prizes in all. Participants sent an SMS......

Words: 413 - Pages: 2

Free Essay

Lipton vs Arizona

...Lipton and AriZona: price competition and equilibrium in the Unites States RTD market. Group essay for Managerial Economics Authors: Serebrennikov Artem, Salzberg Arthur MIM-2015 Contents Abstract 3 Introduction 3 RTD Tea Industry Profile in USA market 5 Price competition on USA market 2010-2014 6 Marginal Costs 9 Using Cournot and Bertrand models 10 Abstract The purpose of this essay is to investigate price strategies of Uniliver (Lipton Iced Tea) and Arizona Beverages USA (stylized as AriZona) and find equilibrium in the ready-to-drink (RTD) market. These two companies compete in USA market and possess great market power. Our team use Cournot and Bertrand approaches to find equilibrium. We have completed a thorough analysis of : * Ready-to-Drink (RTD) tea industry * Competitive landscape * AriZona and Lipton brand perception * AriZona and Lipton sales and financial position We also believe that we can revitalize these brands through : * A better focused target market * Rebranding * Reformulation and new flavors * Increase in marketing expenditures * New line extensions * Building stronger partnerships with distributors Introduction In 2005, the tea industry reached the $1.7 billion category and it is expected to continue growing indefinitely. Market analysts believe the tea industry will continue to boom and is not expected to reach saturation level in the near future. Unilever is aiming for global......

Words: 2895 - Pages: 12

Premium Essay

Pepsico's Strategy

...granola bars, Pepsi soft drink products, Tropicana orange juice, Lipton Brisk tea, Gatorade, Propel, SoBe, Quaker Oatmeal, Cap'n Crunch, Aquafina, Rice-A-Roni, Aunt Jemima pancake mix, and many other regularly consumed products. Company History PepsiCo Inc. was established in 1965 when Pepsi-Cola and Frito-Lay shareholders agreed to a merger between the salty snack icon and soft drink giant. The new company was founded with annual revenues of $510 million and such well-known brands as Pepsi-Cola, Mountain Dew, Fritos, Lay's, Cheetos, Ruffles, and Rold Gold. PepsiCo's roots can be traced to 1898 when New Bern, North Carolina, pharmacist Caleb Bradham created the formula for a carbonated beverage he named Pepsi-Cola. The company's salty-snack business began in 1932 when Elmer Doolin of San Antonio, Texas, began manufacturing and marketing Fritos corn chips and Herman Lay started started a potato chip distribution business in Nashville, Tennessee. In 1961, Doolin and Lay agreed to a merger between their businesses to establish the Frito-Lay Company. There are also so many other products and companies that merger with PepsiCo throughout the years. Once Quaker Oats' food, snack and beverage brand merged with PepsiCo companies in the United States and internationally broadened it portfolio of the brands. Internationally Pepsi brought countries like the Netherlands, Poland, Ukraine, Bulgaria, Brazil and Canada. Marketing From the 1930s through the late '50s,......

Words: 315 - Pages: 2

Free Essay

Paper

...Edward Mathewson Arizona Iced Tea 12/8/14 MKT/421 - MARKETING Instructor: STEPHEN GROTHE Arizona Iced Tea There are many different brands to choose from but when it comes to my favorite there is one that sticks out, Arizona Iced tea. I am what you could say am obsessed with the original flavored iced tea. While many may say obsessed is a very strong word, the reason I say this is because I drink my coffee in the morning then I go straight to my iced tea for the rest of the day. I do not drink anything else other than iced tea and coffee. On my way to work I purchase 2 cans which is what gets me through the day and when I go home I always have a gallon in the fridge waiting for me. The cans I buy I do so from the same gas station everyday which has led to a personal friendship with me and the owner because of my loyalty to them. I also purchase the gallons of iced tea from the same convenient store because they always have the price of buy 2 gallons for $5.00 which is by far the best deal around. Passionate for Arizona There are many reasons that I am so passionate about Arizona iced tea and why I refuse to drink any other brand. For one the taste is something that I have become accustomed to and do not like the taste of any other brand. Their number 1 ingredient is premium brewed tea using filtered water along with 100% natural ingredients, which is the reason I feel the taste is better than others who use artificial flavors. The loyalty that Arizona has for its......

Words: 1145 - Pages: 5

Premium Essay

The Cola War

...Group, are intended as direct, equivalent competitors. The following chart lists these competitors by type or flavor of drink. Flavor/type | PepsiCo | The Coca-Cola Company | Dr Pepper Snapple Group | Cola | Pepsi | Coca-Cola | RC Cola | Diet Cola | Diet Pepsi / Pepsi Light Pepsi ONE Pepsi Max Pepsi Next | Diet Coke / Coca-Cola Light Tab Coca-Cola Zero | Diet Rite Diet RC | Cherry-flavored cola | Pepsi Wild Cherry | Coca-Cola Cherry | Cherry RC | "Pepper"-style | Dr Slice | Mr. Pibb / Pibb Xtra | Dr Pepper | Orange | Mirinda Tropicana Twister Tango Slice | Fanta Minute Maid | Crush Sunkist | Lemon-lime | Teem Sierra Mist 7 Up (in countries other than US) | Sprite Lemon & Paeroa | 7 Up | Other citrus flavors | Mountain Dew Kas Izze | Mello Yello Vault Fresca Lift Lilt | Sun Drop Squirt | Ginger ale | Patio | Seagram's Ginger Ale | Canada Dry Schweppes Vernors | Root beer | Mug Root Beer | Barq's Ramblin' Root Beer (until 1995) | A&W Root Beer Stewart's Rootbeer Hires Root Beer | Cream soda | Mug Cream Soda | Barq's Red Creme Soda | A&W Cream Soda | Juices | Tropicana Dole (prepackaged only, under license) | Minute Maid Fruitopia Simply Orange | Mott's Nantucket Nectars Snapple | Iced tea | Lipton Brisk (ready-to-drink products only, under license from Unilever) | Nestea (manufactured by Nestlé in the US and by a joint venture between Nestlé and Coca-Cola elsewhere) Gold Peak Tea | Snapple | Sports......

Words: 1022 - Pages: 5

Premium Essay

Pepsi Case Study

...Stephan Orgiazzi 1 PepsiCo - The Company Pepsi (formerly known as Pepsi-Cola) is a cola carbonated soft drink that is produced and manufactured by PepsiCo. Created and developed in 1893 by Caleb Bradham, it was named Pepsi-Cola because of the digestive enzyme pepsin and kola nuts used in the recipe. Bradham sought to create a fountain drink that was delicious and would aid in digestion and boost energy. As the cola developed in popularity, he created the Pepsi-Cola Company in 1902 and registered a patent for his recipe in 1903. During over a century, the company product line expanded with the creation of alternative cola recipes such as Diet Pepsi and the purchase of popular soda companies like Mountain Dew. In 1965, the Pepsi-Cola Company merged with snack company Frito-Lay, Inc. to become PepsiCo, Inc. Interesting fact: PepsiCo was the first company to stamp expiration dates, starting in March 1994. (1), (2) Vision of the company The mission of the PepsiCo focuses on products and performance primarily, with a few values thrown in for good measure. The mission statement of the PepsiCo Company is: "Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity."......

Words: 1853 - Pages: 8

Free Essay

Study Case Analysis - Pepsico (in Portuguese)

... X Bibliografia X Respostas às perguntas 1. What is PepsiCo's corporate strategy? Briefly identify the business strategies that PepsiCo is using in each of its consumer business segments in 2008. Desde a sua criação que a PepsiCo apostou sempre numa estratégia de diferenciação, não fosse a mesma resultante da fusão de uma marca de refrigerantes (Pepsi) com uma marca de snacks (Frito-Lay). Entre o fim dos anos 70 e o princípio dos anos 90, a empresa apostou ainda mais nesta estratégia, adquirindo cadeias de alimentação como a Pizza Hut, Taco Bell ou KFC, acabando por eventualmente vendê-las ou dar-lhes autonomia [4] [13]. No virar do século XXI, a PepsiCo voltou a focar-se nos produtos alimentares, adquirindo nos E.U.A. a Tropicana e a Quaker Oats Company e noutros países as marcas de bebidas locais que eram as concorrentes principais ou secundárias. Esta operação revelou-se um sucesso, pois todas as marcas estavam a crescer, embora lentamente, em todos os mercados, excepto a gama de refrigerantes com gás (carbonatados), nos E.U.A., onde o produto Pepsi estava a perder para a sua rival de sempre, a Coca-Cola, conforme se pode na Exhibit 8 do enunciado do Caso. Era preciso fazer algo e a solução passava por ter, sobretudo, um preço baixo para o consumidor e reavaliar o lucro que cada marca estava a dar, porque uma oferta tão diversificada traz consigo produtos concorrentes com quotas de mercados diferentes. Teria de se ter em...

Words: 1590 - Pages: 7

Premium Essay

Pepsico

...CASE 21 PepsiCo’s Diversification Strategy in 2014 John E. Gamble Texas A&M University–Corpus Christi P epsiCo was the world’s largest snack and beverage company, with 2013 net revenues of approximately $66.4 billion. The company’s portfolio of businesses in 2014 included Frito-Lay salty snacks, Quaker Chewy granola bars, Pepsi soft-drink products, Tropicana orange juice, Lipton Brisk tea, Gatorade, Propel, SoBe, Quaker Oatmeal, Cap’n Crunch, Aquafina, Rice-A-Roni, Aunt Jemima pancake mix, and many other regularly consumed products. The company viewed the lineup as highly complementary since most of its products could be consumed together. For example, Tropicana orange juice might be consumed during breakfast with Quaker Oatmeal, and Doritos and a Mountain Dew might be part of someone’s lunch. In 2014, PepsiCo’s business lineup included 22 $1 billion global brands. The company’s top managers were focused on sustaining the impressive performance through strategies keyed to product innovation, close relationships with distribution allies, international expansion, and strategic acquisitions. Newly introduced products such as Mountain Dew KickStart, Tostitos Cantina tortilla chips, Quaker Real Medleys, Starbucks Refreshers, and Gatorade Energy Chews accounted for 15 to 20 percent of all new growth in recent years. New product innovations that addressed consumer health and wellness concerns were important contributors to the company’s growth,......

Words: 6103 - Pages: 25

Premium Essay

Fawadkhattak

...Wikipedia, the free encyclopedia Jump to: navigation, search This article is about the company. For the soft drink, see Pepsi. PepsiCo Inc. | | Type | Public | Traded as | NYSE: PEP NASDAQ: PEP S&P 500 Component | Industry | Foods, Beverages | Founded | North Carolina, U.S. (1965 (1965)) | Founder(s) | Donald Kendall, Herman Lay | Headquarters | Purchase, New York, U.S. | Area served | Worldwide | Key people | Indra Nooyi (Chairman & CEO)[1] | Products | See list of PepsiCo products | Revenue | US$ 57.838 billion (2010)[2] | Operating income | US$ 08.332 billion (2010)[2] | Net income | US$ 06.338 billion (2010)[2] | Total assets | US$ 68.153 billion (2010)[2] | Total equity | US$ 21.476 billion (2010)[2] | Employees | 294,000 (2010)[2] | Divisions | PepsiCo Americas Foods; PepsiCo Americas Beverages; PepsiCo Europe; PepsiCo Asia, Middle East & Africa | Subsidiaries | List of subsidiaries | Website | PepsiCo.com | PepsiCo Inc. (NYSE: PEP) is an American multinational corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which include an acquisition of Tropicana in 1998 and a......

Words: 5294 - Pages: 22

Premium Essay

Pepsi Co

...food and beverage industry. PepsiCo merged with Pepsi and is the parent company that owns a variety of other companies such as, Frito Lay, Quakers, and ocean spray just to name a few. Pepsi alone is considered to be in the soft drink industry. (The PBG Inc. 2013). In accordance to Kpmg LLP, PepsiCo's operations are organized into four business units: PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB), PepsiCo Europe, and PepsiCo Asia, Middle East and Africa (AMEA). These four business units comprise six reportable segments: Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), Latin America Foods (LAF), PAB, Europe, and AMEA. Pepsico is in 200 countries. Prior to their merger in February 2010, PepsiAmericas (PAS) and Pepsi Bottling Group (PBG), the two North American bottling units of PepsiCo, operated as the company's independent bottling subsidiaries. They were the major distributors of the finish goods. Since the merger, PAS and PBG are operating as a unit of Pepsi Beverages Company (PBC). PBC operates in the US, Canada and Mexico and encompasses approximately three-fourths of PepsiCo's North American beverage volume.(Kpmg 1). Other than producing, marketing and selling PepsiCo's global beverage brands, the PBC also manufactures and distributes third-party brands in key local markets such as Dr Pepper, Crush, Rock Star and Muscle Milk. In lieu of having a core focus on Pepsico, we will focus on Pepsi, its narrow subsidiary. Market definition......

Words: 5098 - Pages: 21

Premium Essay

Pepsi Legacy

...DRINK TO SERVE TO HIS CUSTOMERS. HE SUCCEEDED BEYOND ALL EXPECTATIONS, INVENTING THE BEVERAGE NOW KNOWN AROUND THE WORLD AS ... PEPSI-COLA. 3 PEPSI’S BEGINNINGS PEPSI’S BEGINNINGS Caleb Bradham knew that to keep people returning to his pharmacy, he would have to turn it into a gathering place. Like many pharmacists at the turn of the century, he had a soda fountain in his drugstore, where he served his customers refreshing drinks that he created himself. His most popular creation was a unique mixture of carbonated water, kola nuts, vanilla and rare oils, named “Brad’s Drink” by his customers. Caleb decided to rename it “Pepsi-Cola,” and advertised his new soft drink to enthusiastic customers. Sales of Caleb Bradham (circled) was too focused on serving his customers Pepsi-Cola to pose for this picture. Pepsi-Cola started to grow, convincing him to form a company and market the new beverage. In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and applied to the U.S. Patent Office for a trademark. An official patent was awarded on June 16, 1903. At first, he mixed the syrup himself and sold it exclusively through soda fountains. But soon Caleb recognized that a greater opportunity existed—to bottle Pepsi-Cola so that people everywhere could enjoy it. 4 BUILDING THE BUSINESS BUILDING THE BUSINESS Advertising Pepsi-Cola as “Exhilarating, Invigorating, Aids Digestion,” the business began to grow. Caleb sold 7,968 gallons of syrup in......

Words: 4882 - Pages: 20