Friday, March 13, 2009

Pepsi Learns Value of Online Reputation in Social Media

A packaging change by PepsiCo(NYSE:PEP) illustrates social media's growing influence on corporate marketing.
In January, Pepsi introduced a new label on its Tropicana Pure Premium Orange Juice cartons. Gone was the traditional straw-in-an-orange logo of 24 years.It was replaced with a glass of juice.  How did customers react?

Pepsi's 180 with Tropicana is quite a contrast from the obstinate stance they took on the 8-Pack.  Our original post about Pepsi's decision to phase-out the 12-pack and replace it with 8-packs received over 25,000 views and made it to Fark.com. I forwarded the comments of customer outrage  to Pepsi’s PR department, and you can read Pepsi's response here.
Aberdeen’s report included several case studies involving companies that implemented some form of social marketing strategy, and the majority improved their customer relations. The report concludes with a few words of advice for marketers.

Whatever the social media monitor solution, one thing is clear: As control of a brand's marketing messages-and-,indeed, it's very image- continues to migrate from tradition media to social media,companies need to become increasingly adept at paying attention to how they're being perceived in the online world. And they need to be able to respond accordingly, based on the insights they gain.

By Matt O'Hern at 08:15 AM | Comments (4)

(4) Thoughts on Pepsi Learns Value of Online Reputation in Social Media

Thanks for sharing this. So what I wonder next is: If PepsoCo would have done a consumer integrated design change approach that would have cost maybe $100,000 how many Millions would the company have saved?
@AxelS

Comments by Axel Schultze : Tuesday, March 17, 2009 at 05:02 PM

Great to see social media demonstrating just a little of its strength. Something similar happened when Cadburys withdrew a certain chocolate bar http://news.bbc.co.uk/1/hi/england/west_midlands/7539810.stm

Comments by Kevin Mannion : Tuesday, March 17, 2009 at 06:45 PM

I love the fact that the power has shifted back to the consumer. Instead of the brand telling you what it is, the consumer has finally gained a voice to dictate what the brand is. Wonder if a lot of fancy dressers in marketing will lose their jobs.

Comments by Tom Britton : Sunday, March 22, 2009 at 08:52 AM

I really hate it when you go into a restraunt and you want pepsi with your meal and all they have is coke. I'm sorry but when I am having my meal, weather it's at home or anywhere I would like to have pepsi. It is the only soft drink that I like. I have been drinking pepsi since I was 2 years old and soom I will be 50. Thank you so much for pepsi

Comments by Cathy Meader : Monday, March 23, 2009 at 06:46 PM

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