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Pepsi Sales Bubble Essay

1132 words - 5 pages

Pepsi Sales Bubble with Limited Edition Soft Drinks
Marketing 5000 Online Course
Case Summary:
Pepsi and its partner in the Japanese beverage market, Suntory, are using limited edition soft drinks to boost market share and increase sales gaining edge on its competition, Coca-Cola. Because the Japanese market is challenging, introducing a new product is very difficult. Consumers in the Japanese market would rather hunt limited-edition products made specifically for certain seasons, regions, or reasons. Others have been successful with this type of marketing their so Pepsi decided to launch its new strategy marketing limited-edition soft drinks. With its first launch the company sold out ...view middle of the document...

Key Marketing Issues:

Product Differentiation- Pepsi and Suntory differentiate their limited edition products from others
New Product Development- Creating a flavor profile that can appease to the consumers taste
Aesthetic Modifications-Pepsi presents a new can that is appealing to the focused market
Product Design- Pepsi creates a can that is not only stylish but with a design that can appeal to the mass of the market
Line extension- Pepsi and Suntory develop products that is closely related to other product lines but is specific to different customer needs and wants.
Product Modification- Pepsi creates different product flavors that will increase demand in other countries.
Personal Case Analysis:
I learned from this case that Pepsi and Suntory have an effective marketing strategy with its limited edition products. The strategic plan creates a high demand among consumers. They only market four per year as not to over use the limited edition products.
Case Questions:
1. Pepsi and Suntory cap their limited-edition soft drink introductions at four per year. What effect is this cap likely to have on the new product development process?
I feel that the effect of the cap on limited-edition soft drinks will have no effect on new product development. I think there is a clear distinction between their limited edition products and their regular products. Pepsi launches new products on its complete suite of products constantly without it having to be limited edition. This limited edition marketing strategy is not meant to be on constant launch and Pepsi’s only strategy, just one of them. As in the text “to make each new product stand out, they plan to launch no more than four per year….If all goes well, consumers will be primed for the introduction of the next new taste treat and will recognize that they have to buy quickly before that flavor disappears.”
2. How important is product quality when a limited edition soft drink like Ice Cucumber sells out in a matter of weeks?
Product quality is very important when a limited edition soft drink sells out. The overall characteristics of the product must allow it to perform as expected by consumers and to satisfy their need. Pepsi and Suntory must maintain a consistent measure of quality to its consumers in order to create high demand for its future products.
3. What criteria would you suggest that Pepsi and Suntory use when screening ideas for new limited-edition soft drinks?
I would suggest that...

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