Don't Compete With Yourself

I saw this story in my email a few days ago and it reminded me of a couple of themes.

First, Brand Extension. If you have a good name, and can attach that name to something else, perhaps you will increase sales. Except...

When you are competing with yourself. Most folks are not going to buy more soft drinks, just because another flavor is on the shelf. If anything, folks will substitute one for another and Pepsi is just losing sales on the products that people were already drinking.

And to make matters worse, think about all the money spent on advertising, marketing, packaging, production, etc.

About two years ago my company sold off two stations and it made the three we kept stronger because we were not competing with ourselves anymore. We took a classic rock station and sold it to an organization that made it classical music, and an alternative rock station was sold to a group that made it a full time Hispanic station.

Take a look at this from Maple Creative:

ALL -NATURAL or NATURAL DISASTER

PepsiCo is adding three new softdrinks to its portfolio as part of the company's "refresh Everything" strategy. The lineup includes a premium all-natural cola, called Pepsi Natural, to be released this month in 10 select markets, along with limited-time throwback versions in April of Pepsi and Mountain Dew. All three products will be made with all-natural sugar, and aim to take customers in a different taste direction. Pepsi has been prepping this “natural” launch since 2006 as an answer to consumers' concerns about high fructose corn syrup.

“Pepsi Natural and the "Throwback" duo give consumersthe opportunity to refresh how they experience soft drinks,” said Frank Cooper, vp of portfolio brands, Pepsi-Cola North America Beverages, in a statement. “We’re continuing to offer a variety of products across different beverage categories, with a splash of nostalgia and entirely new experiences.”

The "Throwback" idea, I don't know if I am too crazy about it. I mean it worked for Ford when they took the Mustang back a few decades in it's look and it certainly had an appeal to buyers. This is a beverage we're talking about though. People who like and buy the product, "LIKE AND BUY" the product already. Why change the taste for a few weeks. Maybe that's why it's just for a few weeks. I don't know how I feel when PepsiCo says they're offering a line of products "with a splash of nostalgia". To me that doesn't sound refreshing or desireable to stick in my mouth. How about a blast of oldness in your mouth! No thanks! Is this what the new branding and logos were leading up to? If so, then I am way more disappointed than when I thought it was just a total brand/logo overhaul.

Now for this "Natural" thing; PepsiCo seems to be trying to re-invent a "good product" into something, not so much better, but all around different! This seems to be a plan to appeal to a whole new class and life-style of consumers. With everyone scrambling to things that are more healthy and more natural, without all of the man-made additives and preservatives, this seems like PepsiCo's contribution to a new mindset of product needs. Does this seem like a good approach? Is this too risky, will it last? Will health fanatics really pop the top on sugar filled carbonated beverages and feel good about it? I've seen many beverages similar to this around trying to hone in on people who want healthy foods and drinks. They don't usually seem to be a big hit. Will PepsiCo change it all? Will it be the trademark "Natural" soda beverage that everyone will consider, or is it just another crafty mix of words on a product that is still full of sugars, albeit "natural" sugars. And what about the branding? It seems like they have taken the new brand/logos, and rather than change them, they just threw off the bad branding on another line of products. In my opinion I think we're looking at a NATURAL DISASTER!

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