Pepsi Next was launched by PepsiCo into the US market in February , and has since been rolled out to various international markets for instance, it was launched in Australia in September The new product is described as a mid-calorie cola beverage, having a mix of sugar and artificial sweeteners, designed to deliver a full cola taste with reduced calories.
While filling the market gap between full sugar and diet soft drinks, PepsiCo has indicated that its prime target market is lapsed cola drinkers giving them a reason to return to the product category. PepsiCo, which owns range of high profile beverage brands in addition to its flagship brand Pepsi, appear to be highly committed to Pepsi Next providing it with strong launch and management support.
In fact, according to PepsiCo themselves, this is their most significant product launch for several years. As a result, PepsiCo has achieved solid growth is many international markets.
In terms of their overall strategic approach, PepsiCo as highlighted on their website see themselves as innovative and adaptive, as stated in the following website quote:. In their Annual Report, PepsiCo has structured their brands around three related themes, as highlighted in the following table. This brand structure gives some insight into the role of their brands and how they see their brand portfolio developing in the future.
To help implement this corporate goal, across their various brands, PepsiCo has focused on providing a wider range of healthier choices, introducing more natural ingredients, reducing fat content, reducing the environmental impact of their packaging, and so on. PepsiCo has a history of developing and launching a number of mid-calorie beverages and Pepsi Next is by no means their first attempt with this style of product.
One very successful mid-calorie product initiate is Trop50, which was launched in Note: Pepsi acquired the Gatorade brand with their purchase of the Quaker Company in Hence, they believed that it was the right time to revisit a reduced calorie Pepsi variation. Not to be confused with the current Pepsi Light brand marketed in various countries, which is a version of Diet Pepsi.
According to one of their vice presidents at the time Edward E. More recently, in , PepsiCo released a calorie beverage branded as Pepsi Edge. Both of these brands only lasted around 18 months or so in the market before being withdrawn. Volumes units have weakened slightly since , indicating that the market is in late maturity-early decline stage of the product life cycle.
Retail dollar sales have been supported somewhat by price increases. And the soft drink market has also been slightly challenged by sports drinks and energy drinks that have seen a minor increase in market share. Overall, these movements indicate changing tastes of consumers as a result of a stronger health focus. One of the brands most impacted by these market changes has been the flagship Pepsi brand.
Reportedly, Dr Pepper Snapple is pleased with the performance of this new product to date. Independent to the Pepsi Next offering, Coca-Cola is currently mid-late in the process of test marketing in four American cities mid-calorie versions of their Fanta and Sprite brands. Obviously if these tests are successful and these products are fully rolled-out to the market as a standard product, it appears that there could be a third sub-category of soft drinks; traditional, diet, and now mid-calorie beverages.
It would then be interesting to see how and if this sub-category develops, particularly with more offerings and overall promotional support. But on the other hand, it might be possible that Coke might be test marketing the mid-calorie Sprite and Fanta options as a form of market research only. Why it may seem strange that a highly successful company like PepsiCo would frequently come back to a product concept that they had struggled with a number of times, it appears that one of the key drivers has been the slight decline in the US carbonated soft drink CSD market in recent years.
It is estimated that the cola category of the CSD market is reducing by around 90 million cases a year. These consumer purchases have tended to shift to other beverage solutions, such as water, energy drinks and juices. One of the underlying factors driving this change in behavior has been identified as the preference that some consumers have to reduce sugar.
As stated above, a key goal of the Pepsi Next offering is to try and win back cola drinkers lost to other beverages. For instance, Coke Zero was a very successful new product a sub-brand under the Coke family brand , which also had the impact of adding excitement to the Coca-Cola product. The firm used a variety of promotional tools, including a series of humorous YouTube videos with pretend and somewhat inept Coke brand managers who were intent on taking legal action against Coke Zero.
I still prefer drinking diet soda occasionally to get my soda fix with no added alories instead of the few from Pepsi Next. Its a cool product for ppl who like soda. I do wonder if it will catch on tho, cuz ppl who like diet have their calorie free favorites already as do ppl who drink regular soda.
Tried pepsi Next. Actually tastes more like Coke than pepsi. Wife like Diet pepsi which I dont like. Does anyone else feel the same way. I like pepsi max,pepsi next but I like pepsi one the best. I drank the Pepsi Next Cherry Vanilla flavor, and I initially loved the flavor, not too sweet, but not too diety either.. I started to shake like crazy, sweat, got sweaty and foggy headed.
I am not sure what made me react, but I can only assume its the mixture of all the different artificial sweetners in this drink.
I did like the taste, but cant drink it unfortunately.. I tried Pepsi Next and think it has a taste very similar to regular Pepsi without the syrupy part.
Nothing compares to Pepsi One!! Where is it? Is it gone forever? PepsiNext tastes exactly like you would expect. Not as good as regular Pepsi, but better than diet. But I found after my 5th or 6th can, I was much less bothered by the taste. But I agree with the other other posters. Instead of trying to compensate for reducing the real sugar by adding the fake sugar.
Kirrily, I would also like to see pepsi sweetened with stevia, the other artificial sweteners give my husband very loose motions every day he has one. He is diabetic, so it has to be sutiable. I have been waiting for a soda with less sugar.
I thought Pepsi Next was going to be that soda. One taste and I new I was wrong. I read the label and saw it contains artificial sweeteners and high fructose syrup, both of which I do not want. I really love this Pepsi Next- I hope it is able to stick around. Maybe it was my tongue hoping Pepsi brings back Pepsi Twist.
So who is Pepsi Next for? However, the continued presence of acesulfame potassium means this version of the product still contained artificial sweeteners. After the launch of Pepsi Next, a television commercial was launched that depicted a young couple, enjoying Pepsi Next. In the Super Bowl, Pepsi used its advertising minutes right before the halftime show which featured Beyonce, a "brand ambassador" for Pepsi to advertise Pepsi Next.
The presentation by Pepsi the halftime show plus the advertising was unique in that it featured photos of Pepsi customers. Pepsi had asked customers to send in photos before the Super Bowl. The Soda Wiki Explore. The Flavors.
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