Pepsi Lipton Brisk - Harvard Business Review Case Class Presentation

1. CASE REVIEW
ABDOU NIDHI
FAHME NISHMA
KHRISTON ZION
PEPSI-LIPTON BRISK

2. HOW ABOUT
A VIDEO?
Source: http://www.youtube.com/watch?v=1DHo8fYFsd0&feature=relmfu

3. CASE OVERVIEW
• Mary Bernard (VP at PepsiCo and GM for PLP) &
Marisol Tamaro (Brand Building Director of Brisk)
• Re-launch Brisk Iced Tea
• Sales rising and 10% market share
• Purchased ad space for Brisk at the Super Bowl
• Carry momentum in the following months
• TV advertising or Viral advertising through Social
Media
• No dominant company had top market share
• $6 million yearly budget for advertising Brisk

4. SWOT ANALYSIS
STRENGTH WEAKNESS
• Global presence • Priced higher than competitor
• Resource availability • Lipton – Cannibalization
• Distribution channels • Weak social media presence
• Reputed brand image
OPPORTUNITY THREATS
• Tea industry growing globally • Competition
• Consumer preference for RTD • Rising health concerns
• Health awareness on the rise • Alternatives to RTD
• Economic restrictions

5. 5C’s
COMPANY CUSTOMER
• Pepsi – Lipton joint partnership • Brisk brand natural personality is
(PLP) male
• Market and distribute ready to • Target market is predominantly
drink tea in North America male
• PepsiCo: health conscious • Millennial and Hispanics
positioning
• Lipton: bottling and distribution • Reconnect with 90’s
platforms advertisements
• Position product as edgy, cool • Pull in Arizona RTD tea drinkers
and as an energy drink

6. 5C’s Continued …
CONTEXT COLLABORATORS
• Boom in the RTD Tea Industry
(8% growth to $2.2B)
• Market Segment with no dominant • Division of Pepsi Americas holding,
brand a $10B strong conglomerate
• Large worldwide and extensive
• Increase in Health and Wellness bottling distribution
awareness
• Economic downturn has affected
Lipton Ice Tea sales since 2008
• Consumer goods multinational,
with over 100K employees
worldwide

7. COMPETITORS
926,000
6,194
237,000
9,057
3,728
26,000
279
3,983
Source: Exhibit 5

8. COMPETITORS
MARKET SHARE
Arizona (-0.1%)
28%
35% Lipton (-2.5%)
Brisk (1.7%)
Snapple
Nestea (-0.1%)
15%
5% Others
8% 9%
Source: Exhibit 1

9. SEGMENTATION
• YOUNG ADULTS
• ON THE GO LIFESTYLE
• MALES
• NEED FOR A EDGY, COOL &
ENERGETIC BRAND ASSOCIATION

10. TARGET MARKET
MILLENNIALS HISPANIC MALES
Technology savvy & intelligent 20% of the male demographic

11. POSITIONING
EDGY, COOL AND GIVES YOU ENERGY

12. POSITIONING 4P’s
BRISK ICE TEA - Product BRISK ICE TEA - Brand
PRODUCT: RTD Ice Tea PRODUCT : Awareness & Loyalty
PRICE: 99 cents per 500ml can PRICE: Free media space, word of
mouth
PLACE: Everywhere soft drinks are PLACE: Social Media, Special Events
sold
PROMOTION: Contests, coupons, PROMOTION: Social Media, Special
etc. Events

13. OBJECTIVES
RE-LAUNCH BRISK
ADVERTISING SPENDING
GET ARIZONA DRINKERS TO
MOVE TO BRISK
STRONG SOCIAL MEDIA
PRESENCE

14. OPTIONS
TELEVISION - Advertising
OR
SOCIAL MEDIA – Viral Marketing

15. OPTION 1 - TV
PROS CONS . Expensive
. Mass Reach
. Commercial
. Target Specific avoidance
. Difficult to alter
. DVR

16. OPTION 2 –
VIRAL MARKETING
PROS CONS
• COST EFFECTIVE • SPAM THREATS
• HIGHLY CUSTOMIZABLE • LOW SUCCESS RATE
• WORD OF MOUTH
• EASILY IMITATED
• BUZZ
• LOW COST = HIGHER
PROFITS

17. OPTION 2 – SOCIAL MEDIA
• Fully integrated one-stop shop for creative
ideas, production, promotion and
distribution
• In-house production studio
• Creative teams experienced in 2D & 3D
• Digital and social media experts
• Created ten of the weekly #1 most viewed
brand videos on YouTube
• Garnered 3.5 million views on average per
campaign
CLIENTS

18. OPTION 2 - EXPLAINED
“That’s Brisk, Baby”: Rebirth
The Brisk Brothers
Creative Characters
“Now That’s Brisk”

19. RECOMMENDATIONS
• EXHIBIT 8

20. RECOMMENDATIONS
• EXHIBIT 10

21. RECOMMENDATIONS
“That’s Brisk, Baby”: Rebirth