4 minutes to read. By author Michaela Mora on March 1, 2010 Topics: Brand Research, Business Strategy, Packaging research
Last year PepsiCo received a lot of “buzz” thanks to a couple of marketing stumbles for two of its big brands, Tropicana and Gatorade. In both cases, the brands got makeovers that stripped their brand identity, for the sake of simplicity, and gave them a quite generic look. This resulted in confused consumers, which, in turn, hurt sales. In the case of Tropicana, after consumers’ protest, PepsiCo reinstated the old packaging with the familiar orange with the straw. But for Gatorade, now called “G,” PepsiCo continued ahead with the new packaging and label.
According to PepsiCo’s Americas Beverages chief Massimo d’Amore, who was interviewed by the WSJ, in the case of Gatorade, a certain level of confusion was expected, but that internal research indicated that “the ‘G’ campaign scores high in the coolness factor.”
For a while, I wondered what type of research they did, who was the target sample, and what metrics were used to measure success. Luck would have it that I had the chance this year to meet Jimmy Smith, the creator of the “G” TV commercials. He told me that the ads were targeting teenagers between 13 and 17 and they were looking to create buzz, which they did. I admit that “coolness” is likely to be an important driver in this market segment, but can misfire in other segments.
I have proof in my own household. My husband, a fan of Gatorade and part of the 37.7% of consumers in the age group 35-44 who drink Gatorade monthly*, was certainly lost once the packaging changed. He thought that the new “G” packaging was one of Walmart’s store brands.
In July 2009, Beverage Digest estimated that Gatorade had lost a 4.5% share of the sports-drink market and its volume slipped 17.5% in the first six months of 2009 after the launch of the new packaging in January. It seems that the “coolness” factor may have worked against Gatorade’s brand equity.
So, if you ever get involved in a brand makeover or new packaging re-design make sure to do branding research that allows measuring the overall impact of the changes on the brand recognition and sales. The best approach to branding research combines both qualitative and quantitative techniques. Neither alone gives a solid answer, so I would suggest considering following this research plan:
The combination of qualitative and quantitative research techniques will give you in-depth insight and a solid foundation for decision making. Don’t be tempted to only run a couple of focus groups or an online survey and feel you know everything. Conducting branding research with the right approach will pay off and prevent you from making mistakes that will hurt your bottom line.
* SMRB – Summer 2009 Adult 6 Months (Feb 09 – Sept 09)
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