Creating a positive and consistent brand image is no easy challenge. It’s one challenge to build a brand but another to maintain one. One mistake can negatively impact a brand and make it very difficult to get back to where it once was. Consumer perception plays a huge role in if a brand maintains a consistent image. We’ve talked about strategies that help build brands like the marketing mix and brand resonance model. Now let's take a look at a company that built one of the biggest and most recognizable brands but has continuously struggled to maintain a positive image. This brand is the infamous Pepsi.
Pepsi’s early brand image
Pepsi is a known brand around the world. They built a recognizable brand and competed with one of the largest soda companies in the world, Coca-Cola. For a brief moment, some people even thought they would take the number one spot. Now when you mention Pepsi you might get a side eye or someone might bring up a controversial topic that involves them. But what happened Pepsi? How did they go from being a brand people enjoy to one no one cares for?
Before we dive into the negatives, it's important to highlight some of the positive things they’ve done to build this brand. Firstly, they leverage their channels of distribution effectively. Everyone who goes grocery shopping will see them in their store. Whether it's Target, Walmart, or a gas station, you can find Pepsi. Something many may not know is they will partner with restaurants and universities to only sell Pepsi and specifically not be able to sell Coca-Cola. That’s why sometimes when you ask for Pepsi your server will say they only have Pepsi. A lot of times this is the case and you won’t even know which soda you are actually getting.
Although this isn’t too common, Pepsi does partner with other brands to form collaborations. They release limited-time flavors such as their maple syrup flavor where they partnered with IHOP. They’ve even collaborated with clothing brands which helped them increase their brand awareness. If they’re not doing collaborations you’ll most likely notice they sponsor a lot of sports and events. With all this being said, how is it that their image has suffered so much throughout the latest years? Let's talk about it.
Pepsi’s Brand Decline
While celebrity endorsements are a great way to promote a product, they can also cause some conflict among consumers. This is when the values of a company and consumer perception play a gigantic role in establishing their brand image. Imagine a brand that focuses on vegan products endorses a celebrity who constantly talks about eating meat. That wouldn’t be a good look. Although Pepsi didn’t do this specifically, they did something kind of similar.
Personally, there is one main thing the majority of people bring up when talking about this brand. This is the horrible commercial they released while using one of the biggest celebrities (Kendall Jenner) to endorse the product. This is what you would call a PR nightmare. You can learn more about the Pepsi commercial here but to keep it short and simple, Pepsi missed the mark. They were not relatable and understanding of the public during this time. It was almost like an insult to all their consumers.
After creating a great image and leveraging their company brand, they now faced massive backlash and would continue to face a significant impact on the company as a whole. As time went on people stopped making it a big issue but it’s still something that will get brought up today. That's how powerful the slightest mistakes a brand can be. Afterward, Pepsi decided to rebrand and create a new logo. Normally, that’s a breath of fresh air for some brands and not something common with giant companies like that. Unfortunately for Pepsi, this change started trending online for the wrong reasons. Pepsi hired a branding agency that clearly did not do their research on the company. Long story short, they created a brand kit of over 20 pages that consumers saw as pointless and not relevant to the brand. They included things about universe expansion and gravitational pulls which have nothing to do with a soda company. Since then Pepsi has not been able to do something that takes the spotlight away from their mistake.
The importance of a consistent brand image
A consistent brand image is important because it is the foundation upon which consumer trust and loyalty are built. Consistency in branding assures that consumers understand who a company is and is something that they support. When a brand maintains consistency it reinforces its identity in the minds of consumers, making it easier for them to support it. While Coca-Cola continues to have the hearts of its consumers, Pepsi struggles to support its image. It's a fair assumption to say that their ROI on rebranding was not a good one. Hopefully, Pepsi can start to improve its customer perception and improve its brand image.
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