The Pepsi Refresh Project Case StudyOrder DescriptionPlease carefully read the case study (attached), then summarize it with discussing this question: “Pepsi’s Refresh Campaign is considered a form of cause marketing, attempting to reposition the brand. Was this type of branding campaign appropriate for Pepsi? Explain why or why not”Important Note: please review the two exemplars that I attached. They are perfect examples of the case summary I look for.You do not have to use sources or references in summarzing the caseThe Pepsi Refresh Project: A Thirst for ChangeAna Maria “Ami” Irazabal grabbed a Pepsi from the soda fountain in the hallway while dashingto her meeting. She needed a caffeine boost to keep with the pace of her job as the senior marketingdirector for Trademark Pepsi and the leader of the company’s Social Good program, the PepsiRefresh Project. It was December 2010, and the project was finishing its first year.In 2009, Pepsi had announced that it would not run advertising for its trademark brands duringthe 2010 Super Bowl. Instead, the company diverted $20 million—its typical Super Bowl budget—tosupport grants for a cause marketing program. The Pepsi Refresh Project allowed people to submitideas for grants to “refresh” their communities. Grants were awarded to ideas that generated themost votes.Consumer response to the program was tremendous. More consumers submitted ideas to thePepsi Refresh Project than auditioned for American Idol; more votes were cast for Pepsi Refreshprojects than in the previous U.S. presidential election. At the same time, Pepsi sales were slumpingin the U.S.—down 5% in 2010—and PepsiCo was losing market share to its rival, Coca-Cola.1 For thefirst time in 20 years, Pepsi-Cola surrendered its title as the second best-selling carbonated beverageto Coke by slipping to third, behind Diet Coke.2 PepsiCo’s share price was also down 5% in 2010.3Irazabal sat down with her brand team to plan their strategy for 2011. Two questions loomed:Should Pepsi continue to invest in the Pepsi Refresh Project? And, if so, how should the team tweakthe marketing strategy and execution to use the project’s success to drive Pepsi sales?The History of the Pepsi BrandBrand Pepsi was owned and managed by PepsiCo, a global consumer products company thatmanaged a diverse portfolio of snack food, beverage, and food brands—including Fritos, Doritos,Lay’s, Gatorade, Tropicana, Sobe Waters, Aquafina, 7-Up, Mountain Dew, Quaker Oats, Cap’nCrunch, Rice-a-Roni, and Aunt Jemima. In 2010, Pepsi was one of the world’s most valuable brands.Its brand equity was valued at over $14 billion, and it ranked 23rd on the Interbrand ranking of thebest global brands.4 The Pepsi brand had a long history, originating in 1898 as a hand-mixedcarbonated creation developed to delight the crowds at Caleb Bradham’s North Carolina pharmacy.The original Pepsi-Cola drink was joined by Diet Pepsi, a low-calorie drink launched in 1964, andPepsi MAX, a zero-calorie, sugar-free cola with double the amount of caffeine launched in 2007, toform the Trademark Pepsi brand family.________________________________________________________________________________________________________________Professors Michael I. Norton and Jill Avery (Simmons School of Management) prepared this case. HBS cases are developed solely as the basis forclass discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffectivemanagement.Copyright © 2011, 2013 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-5457685 FREE, write Harvard Business School Publishing, Boston, MA 02163, or go to www.hbsp.harvard.edu/educators. This publication may not bedigitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School.This document is authorized for use only by Eman Abdulqader in Strategic Marketing Spring 2016 taught by Mark Parker, Niagara University from January 2016 to July 2016.For the exclusive use of E. Abdulqader, 2016.512-018The Pepsi Refresh Project: A Thirst for ChangeThe Pepsi GenerationIn its early days, Pepsi-Cola was sold as a healthful drink. During the Great Depression, itcaptured consumers’ attention with a message of value, offering 12 ounces of soda (twice as much asthe competition) for a nickel. During World War II, Pepsi changed its packaging to red, white, andblue, featuring patriotic themes in its advertising.In the 1950s, Pepsi was positioned as a drink for the young and the young at heart, embodyingbeing sociable and spirited, feeling free, and embracing change. In the 1960s, Pepsi ran awardwinning advertising campaigns that designated the generation then coming of age as “The PepsiGeneration.” In 1985, Pepsi became “The Choice of a New Generation,” with an ad featuring pop starMichael Jackson, putting Pepsi on the leading edge of popular culture. In 1997, Pepsi launched its“GeneratioNext” campaign, reinvigorating the message for a new generation of Pepsi consumers.Pepsi continued to include the most influential music artists (e.g., David Bowie, Madonna, ArethaFranklin, Faith Hill, Britney Spears, Shakira, and Beyoncé), sports heroes (e.g., Joe Montana andShaquille O’Neal), and fashion models (e.g., Cindy Crawford) in its advertising. Howard Pulchin,EVP and managing director of Brand Stewardship for Edelman, Pepsi’s public relations agency,summarized Pepsi’s pop culture strategy: “Pepsi has always been at the nexus of cultural shifts,trying different, new things. Pepsi is about bringing together people and ideas at the nexus of culture.When people are together, Pepsi is there.”Frank Cooper, chief engagement officer of PepsiCo Beverages, explained the enduring appeal ofthis lifestyle positioning:In the 1960s, we built a successful ad campaign on the slogan “For those who think young.”That idea morphed into “The Pepsi Generation.” The Baby Boomers who were coming of agewere excited, engaged, and enthusiastic—and started a movement that transformed ourculture. In the 80s and 90s, Generation X experienced the transformation from typewriter tocomputer, letters to email, isolated cultures to global infrastructure. Today’s Millennials, themost globally connected group in history, embody and embrace change. They live life in beta.5As the brand team shaped the Pepsi Refresh Project, they were careful to consider Pepsi’s richbrand meaning from its long history, with Irazabal noting that “part of Pepsi’s DNA has always beenthe spirit of the challenger, celebration of the next generation, and of optimism and all things youngat heart.”6The Cola WarsIn the 1970s, Pepsi’s rising sales began to challenge those of the market leader, Coca-Cola—andthe “cola wars” began. Pepsi was fighting against a formidable competitor. In 2010, Coke’s brandequity was valued at over $70 billion and it topped Interbrand’s list of the best global brands.Interbrand’s assessment of the Coke brand was that “its brand promise of fun, freedom, spirit, andrefreshment resonates the world over and it excels at keeping the brand fresh and always evolving—all this, while also maintaining the nostalgia that reinforces customers’ deep connection to thebrand.”7 Memorable campaigns included “It’s the Real Thing” from 1969, “I’d Like to Teach theWorld to Sing” in 1971, “Have a Coke and a Smile” from 1979, “Coke is It!” from 1982, and “AlwaysCoca-Cola” from 1993.In 1975, Pepsi’s brand team found a compelling way to differentiate Pepsi from Coke, convertingresults from blind taste tests showing that people preferred the taste of Pepsi to Coca-Cola into anaward-winning advertising campaign. The “Pepsi Challenge” energized Pepsi sales, catapulting the2This document is authorized for use only by Eman Abdulqader in Strategic Marketing Spring 2016 taught by Mark Parker, Niagara University from January 2016 to July 2016.For the exclusive use of E. Abdulqader, 2016.The Pepsi Refresh Project: A Thirst for Change512-018brand into the #1 slot for the best-selling soft drink in American supermarkets. In response, CocaCola reformulated Coke, creating a sweeter version that appeared on shelves in 1985. “New Coke”beat both Pepsi and Coke in blind taste tests. However, Coke’s consumers revolted against NewCoke, demonstrating the nostalgic and iconic appeal of the Coke brand. In response, Coke quicklyintroduced Coca-Cola Classic.Pepsi and Coke’s rivalry was enduring, with the two companies constantly trying to win the battlefor “brand switchers”—the large group of die-hard cola drinkers who were fickle enough in theirpreferences to switch from one brand to the other on the basis of price discounts, innovativepromotional strategies, and other marketing efforts. In 2010, Coca-Cola led the soft drink market(Exhibit 1).PepsiCo in the Twenty-First CenturyAs the new century dawned, PepsiCo faced significant challenges. The first was a decrease in sodaconsumption in the United States. In 2009, the average American consumed 46 gallons of carbonatedsoft drinks, the equivalent of 736 8-ounce servings—more than 2 servings per day—but downsignificantly from 1998, when Americans consumed 864 servings.8 Since peaking in 2004, volumesold had declined for six straight years, as cola drinkers switched from soda to iced teas, juices, andwaters—though in 2009 consumers still purchased more than twice as many gallons of cola thanbottled water, and more cola than milk and beer combined (Exhibit 2). Analysts expected volume todecline by 1.5% to 3% annually for the next ten years.9,10The second challenge came from external pressure. By 2010, two-thirds of American adults andone-third of American children and adolescents were overweight or obese.11 First Lady MichelleObama initiated an anti-obesity initiative that included requiring soda manufacturers to put caloriecontent on the front of containers.12 Groups lobbied lawmakers to sponsor soda taxes to reduceconsumption and pay for the health costs of obesity.13 Companies like PepsiCo, Coca-Cola, andMcDonald’s were often presented as corporate exemplars of the obesity problem. Jon Leibowitz,chairman of the Federal Trade Commission, stated that his agency would begin “shaming companiesthat aren’t doing enough.”14In response, the American Beverage Association pledged to reduce beverage calories in themarketplace, with their member companies offering lower-calorie beverages and smaller portionsizes.15 PepsiCo and the Coca-Cola Company stopped selling full-calorie sweetened drinks in U.S.schools in 2006.16 In 2009, PepsiCo’s CEO, Indra Nooyi, announced a new vision for the company—Performance with Purpose—that placed global corporate citizenship at the forefront of PepsiCo’smission:PepsiCo’s people are united by our unique commitment to sustainable growth, calledPerformance with Purpose. By dedicating ourselves to offering a broad array of choices forhealthy, convenient, and fun nourishment, reducing our environmental impact, and fostering adiverse and inclusive workplace culture, PepsiCo balances strong financial returns with givingback to our communities worldwide.The company began to enhance its product portfolio with wholesome foods and beverages, with anew approach to segmenting its product line: fun-for-you products such as Pepsi, Doritos, andMountain Dew; better-for-you products such as Baked Lays and Propel water, with levels of fat,sodium, and sugar in line with dietary-intake recommendations; and good-for-you products such asGatorade, Quaker oatmeal, and Naked juices that included whole grains, fruits, vegetables, and3This document is authorized for use only by Eman Abdulqader in Strategic Marketing Spring 2016 taught by Mark Parker, Niagara University from January 2016 to July 2016.For the exclusive use of E. Abdulqader, 2016.512-018The Pepsi Refresh Project: A Thirst for Changenutrients. Research and development operations were directed to explore new means of making all ofPepsiCo’s products healthier. PepsiCo’s goal was to triple the number of good-for-you products by2020. Nooyi stated: “By expanding our portfolio, we are making sure our consumers can treatthemselves when they want enjoyable products, but are able to buy a range of appetizing andhealthier snacks when they are being health conscious.”As the company focused on making their product offerings healthier, critics claimed thatPepsiCo’s senior management was losing its focus on the core soda and snack businesses—and thatthe stock price was suffering as a result. Sanford Bernstein analyst Ali Dibadj stated that “they haveto realize that at their core they are a sugary, fatty cola company and people like that. Health andwellness is a good focus, but you can’t be singularly focused on it.”17The Refresh Everything CampaignAs Irazabal, Cooper, and their advertising agency, TBWAChiatDay, searched for the next bigidea to anchor Pepsi’s 2009 advertising campaign, they observed several important cultural shifts inthe U.S. The financial crisis of 2008 had provided a sobering end to the excesses of the 2000s. A Pepsiconsumer survey in December 2008, however, showed that Americans were hopeful about the future;this was particularly true for Millennial consumers (ages 17-27), 80% of whom expressed hope abouttheir future.In response, Pepsi launched a new campaign—“Refresh”—with the tagline “Every GenerationRefreshes the World,” which had three executions: Wordplay, targeted mainly to Millennials; BottlePass, targeted mainly to Baby Boomers; and Refresh Anthem for the Super Bowl. All executionscommunicated themes of optimism, hope, joy, and love; the campaign was launched to coincide withNew Year’s Eve 2009, and Pepsi kicked off the excitement by plastering Times Square in New YorkCity, the site of the biggest New Year’s Eve party in the U.S., with advertising. The campaignchallenged consumers to refresh and renew their world.A “Refresh Anthem” commercial was created for the 2009 Super Bowl, featuring Bob Dylan andwill.i.am, the lead singer of the Black Eyed Peas, to the tune of the Dylan classic “Forever Young.”The ad featured the tagline “Every Generation Refreshes the World” and juxtaposed scenes from the1960s and the 2000s. The visuals focused on the similarities between the Baby Boomer and Millennialgenerations and communicated themes of happiness, change, and youthfulness. TBWAChiatDay’sPepsi account planner, Jeremy Simon, explained the campaign:It came from insight into two business problems facing Pepsi. Our core Baby Boomerconsumers were leaving the soda category and weren’t being replaced by Millennials. Ourchallenge was to find a single solution to both problems, to keep Baby Boomers and attractMillennials. Our insight was that those two generations have a lot of shared values andattitudes—they are optimistic generations who believe that they can change the world.Many noted similarities between the messaging of “Refresh Everything” and the rhetoric ofBarack Obama, and between Pepsi’s newly redesigned logo and the logo used by Obama in hispresidential campaign. To capitalize on the excitement surrounding Obama’s inauguration, Pepsipeppered the crowd with Pepsi tote bags and T-shirts and blanketed Washington, DC, with PepsiWord Play billboards. Nicole Flavin, Pepsi Brand marketing director for Diets and Innovation,explained that “our point was not to have a political point of view, but to make sure that we wereriding the sentiment in the country—and the sentiment was change.”4This document is authorized for use only by Eman Abdulqader in Strategic Marketing Spring 2016 taught by Mark Parker, Niagara University from January 2016 to July 2016.For the exclusive use of E. Abdulqader, 2016.The Pepsi Refresh Project: A Thirst for Change512-018The Pepsi Refresh ProjectAs the “Refresh Everything” campaign moved into its second year, the mood of the nation hadchanged again. Simon explained: “2010 became a year of action, not words. ‘Refresh Everything’would be judged on the brand’s actions, not just on the words in our advertising. We knew we had todo something really big and tangible, a physical manifestation of our brand platform.”Irazabal’s research showed that Millennials perceived the Pepsi brand as superficial: “Consumersare tired of words without actions. ‘So, great, you’re refreshing the world. Show me how.’” Coopernoted that “one of the ideas that came up was to show consumers that the brand is giving back to theworld—that the brand is not just taking.”The Pepsi Refresh Project was a marketing program geared to solicit and reward consumers’ ideasfor refreshing their communities: Pepsi would enable consumers to enact change by funding theirideas. For 2010, $20 million—originally earmarked for other marketing activities including SuperBowl advertising—would fund the best ideas submitted by consumers. Grants ranging from $5,000 to$250,000 would support ideas in six categories, such as “Education” and “The Planet” (Exhibit 3).The hub of the program was its website—www.refresheverything.com—where consumers submittedideas, reviewed idea proposals, and cast their votes. Each month, the site accepted up to 1,000 ideasubmissions. Consumers were encouraged to return frequently to vote; each person could vote for 10ideas per day during a 30-day voting period.The project capitalized on several converging trends. First, studies showed that brands’ socialcapital was important to Millennials: 69% claimed that they considered a company’s social andenvironmental commitment when shopping, and 89% said that they would switch to a brandassociated with a good cause.18 Second, Millennials believed that they were both obligated andempowered to make the world a better place: 92% believed the world needed to be changed, and 83%believed that their generation had a duty to change the world.19 Third, Millennials believed thattechnology, and specifically social media linking people together, was a force for change.20The brand team encapsulated these trends with the tagline “Every generation refreshes the world.Now, it’s your turn.” Launch materials invited consumers to participate:Imagine if people from all walks of life across the U.S. had just one idea to make the worldbetter. Now imagine if they had the means to bring their ideas to life. The Pepsi Refresh Projectoffers a platform for change, empowering Americans to bring a positive impact to theircommunities . . . . The Pepsi Refresh Project is about the power of people and their ideas.Pepsi’s Partner NetworkThe scope and the scale of the project were unlike anything Pepsi had done before. The brandteam enlisted a cadre of agency partners to help plan and execute the project. In addition, all internalPepsi brand resources—both financial resources and personnel—were diverted from other marketingprograms. Irazabal laughed as she recalled the support she had received:We have about 125 people working on the project, including everyone here at Pepsi and atour agency partners. If you ask any one of them, they all feel like they own the project. There isa huge sense of pride. People who work on the other brands here at PepsiCo ask, ‘Is there anyway I can help?’ We have a group of employees who are Millennials who help us moderate theideas each month, just because they want to be a part of it, not because it is part of their job.5This document is authorized for use only by Eman Abdulqader in Strategic Marketing Spring 2016 taught by Mark Parker, Niagara University from January 2016 to July 2016.For the exclusive use of E. Abdulqader, 2016.512-018The Pepsi Refresh Project: A Thirst for ChangeGOOD, an integrated media company for “the people, businesses, and NGOs moving the worldforward,” played a major partnership role. PepsiCo envisioned GOOD as a guide and an enabler.“We brought GOOD in to shepherd us through the process. They had insight into how things reallywork—not just giving to an organization and hoping that they would accomplish something, butgetting involved directly to help execute an idea,” said Cooper. GOOD’s participation grantedPepsiCo legitimacy, as Irazabal explained: “We talked to non-profit entrepreneurs to understandwhether it would work. Will it be called greenwashing? How do we make it authentic?”GOOD played several roles. They recruited and managed a team of Ambassadors—emergingleaders, activists, neighborhood advocates, and non-profit founders—who worked to increase theinvolvement of the non-profit community and cultivate and curate innovative ideas in their areas ofexpertise. GOOD worked with Pepsi personnel to vet submitted ideas to ensure that they adhered tothe spirit and law of the program before being opened to consumer voting. The democratic nature ofthe program—allowing consumers to decide which causes Pepsi would support—made the projectunique among cause marketing programs. Lauren Hobart, chief marketing officer, PepsiCo SparklingBeverages, felt that “there was a time when brands wanted to keep total control, but we gave controlto the people—which is crucial in engaging today’s consumers.” The idea-vetting process wasdesigned to ensure that Pepsi did not fund ideas that could damage the brand’s reputation. AndreaFoote, senior manager of Pepsi Beverages Company Communications, was one of the employeesinvolved. She noted, “Pepsi has a code of conduct and ethics, and we all try to live by it. Whathappens when there’s an idea that’s not in accordance with that code? Can Pepsi stand behind it?”GOOD worked with grant winners to maximize their success in executing their ideas in theircommunities. They also managed other agencies involved in the grant process, such as GlobalGiving, which conducted due diligence on the spending of the grant money, and MissionMeasurement, which assessed the social impact of the grants. Grant Garrison, grants director ofGOOD, explained: “Once the money is out there, how do we ensure that the grantees impact theircommunity—and actually do what the voters wanted them to do? Our team of grant managersconducts public relations for winners’ events to help them attract as much community participationas possible.”The goal was to help grantees succeed. Irazabal noted that “we have a whole backstageorganization that supports the winners to make their ideas a reality. We aren’t holding their handsper se, as these are very driven people, but we’re making sure we have the right support for them.”21Employee Engagement ProgramsIn addition to its external partners, PepsiCo relied on its employees to generate excitement for thePepsi Refresh Project. The brand team seeded a special contest among PepsiCo’s employee resourcegroups, such as the Women’s Initiative Network and Adelante, the Pepsi Latino/Hispanic InclusionGroup. Each group was asked to submit an idea for a $10,000 grant, and employees voted for theirfavorites. During the voting period, the Pepsi Refresh Project team took over PepsiCo’s headquarters,wrapping the space with Pepsi Refresh Project signage. All 41,000 PepsiCo employees receivedinformation about the program via Pepsi’s internal newsletter, and branded T-shirts were droppedon every desk. The winner of the employee resource group contest was announced at a Town HallMeeting featuring CEO Nooyi as the keynote speaker. Flavin recalled the excitement of the launch:“Indra told us that never in her wildest imagination did she think that a brand would internalizePerformance with Purpose and bring it to life in such a meaningful way. She encouraged all of us totell 10 people about the Pepsi Refresh Project.”6This document is authorized for use only by Eman Abdulqader in Strategic Marketing Spring 2016 taught by Mark Parker, Niagara University from January 2016 to July 2016.For the exclusive use of E. Abdulqader, 2016.The Pepsi Refresh Project: A Thirst for Change512-018Internal research demonstrated the program’s impact on employees: 97% said that the projectreinforced their pride in PepsiCo as a company, 83% planned to vote for an idea, and 25% planned tosubmit an idea. Once the program went live to consumers, employees were encouraged to submitideas; in the first 10 months, 94 employees or their immediate families had done so. Kristine Hinck,senior manager, Pepsi Beverages Company Communications, summarized the employee response:The brand team’s decision to engage employees first was unique and significant. Thisapproach really helped employees across the company become active, educated, passionateambassadors during the launch of the consumer-facing program. We had employees writing into say, ‘In my 30 years as a PepsiCo employee, I’ve never been more proud!’”Bottler Engagement ProgramsPepsi also engaged its bottler partners in the Pepsi Refresh Project. PepsiCo distributed its sodathrough a complex network of independent companies who owned the franchise rights to distributePepsi products in particular geographic areas. Since the bottlers were Pepsi’s front line in stores andin local communities, the brand team knew their support was crucial to the success of the program.The project was announced at a national bottler meeting and webinars were produced to walkbottlers through the logistical details of the program. A special bottler grant contest spurred ideasubmissions from the bottlers. Because bottlers would manage local public relations and eventssurrounding the grant winners, the brand team created winner kits (with banners and oversizedchecks) and press kits for bottlers to use with their local news organizations.Some bottlers were skeptical of the program’s ability to sell more product; others recognized itsappeal for burnishing the brand’s image. As Foote recalled: “The bottlers understood that the projectwas partly about the brand image, about changing people’s perceptions of carbonated soft drinks—which had become the poster child for bad eating habits. But, for our bottlers, sales volume is muchmore important to them. So for any program that we launch, their bottom line is, ‘How is this goingto help me sell more Pepsi?’”Dave Pederson, vice president of soft drink sales at Bernick’s Beverages and Vending inMinnesota, believed that the project had enhanced his ability to increase Pepsi’s visibility in stores:“We fight for floor space and locations in the stores, and this year I think we’re getting betterlocations than our competitors. We’re getting bigger displays, because [stores] are seeing that we’regiving back to the community.”22 But others expressed concern. Brian Charneski, a representative of16 independent bottlers said, “People feel good about [the Pepsi Refresh Project] and I think it’s neat,but it doesn’t translate to ‘I’m going to buy a Pepsi.’”23The LaunchThe Pepsi Refresh campaign website went live on January 13, 2010. Irazabal remembered themoment: “All of the media support for the Pepsi brands went toward the project in 2010. It was thetheme that united all the activities of the brand—one voice, one project.” One key decision was howbest to incorporate the Pepsi brand and products into the project. Kate Watts, of Pepsi’s digitalagency, HUGE, noted that “there was no direct call to action for purchase on the website. Thebranding was obviously very much Pepsi, but there was no direct push to sell the product in anyshape or form. And that was the original intent—it was supposed to elevate the brand, not drivesales.”7This document is authorized for use only by Eman Abdulqader in Strategic Marketing Spring 2016 taught by Mark Parker, Niagara University from January 2016 to July 2016.For the exclusive use of E. Abdulqader, 2016.512-018The Pepsi Refresh Project: A Thirst for ChangeA launch blitz was designed to build excitement (see Exhibit 4 for examples). Edelman and WeberShandwick, Pepsi’s public relations agencies, managed a multifaceted national and local publicrelations program. Actors Kevin Bacon and Demi Moore participated in a Pepsi Refresh CelebrityChallenge, seeking votes for their favorite causes; the Celebrity Challenge was announced for the firsttime on The Today Show. The Pepsi Refresh Facebook page also featured an exclusive opportunity towatch the “Pepsi Refresh Everything through Great Ideas” brainstorm live from New York City. Thebrainstorm brought together Moore, Bacon, CMO and president of joint ventures for PepsiCoAmericas Beverages Jill Beraud, advisory board member Majora Carter, and college students fromthe New York City area to discuss ideas that they believed would positively move the world forward.Viewers submitted questions in real time via Facebook and Twitter (@Pepsi); content from thebrainstorm was available on Ustream, Facebook, and a new iPhone application.In just 72 hours, the site reached the 1,000-idea submission limit for the first month, with at leastone submission from each state. More than 141,000 votes were cast in the first three days of voting. Inthe second month of the program, it took only 16 hours to field 1,000 submissions. Pulchinremembers the moment when the team realized that the program would be a success: “We wereworried that there would be too few ideas submitted. What if no one participates? What if no onevotes? But there were way more ideas than we could put up on the site.”Social Media ProgramsGiven the Millennial target audience and the fact that the projects would be posted and the votingwould take place online, the team relied heavily on social media for its reach and impact. Irazabalincreased her digital advertising spend by 60% for 2010.24 Pepsi sponsored Social Media Week, anindustry conference on trends in social and mobile media, and solicited three influential bloggers tocompete for a $50,000 grant. Irazabal, Cooper, and other executives were interviewed by bloggers atthe event, which generated 50 million impressions on Twitter.Consumers interacted with the project across social media platforms. They voted for ideas on themain website, on Facebook, or via SMS text messaging. They were encouraged to “Like” the PepsiRefresh Project on Facebook and to use Twitter to generate publicity and solicit votes. A mobileapplication allowed consumers to view ideas in their area and vote from their mobile phones. On thewebsite, winners were encouraged to blog about their efforts to increase awareness of their causes.Soon, the site was receiving four to five million unique visitors each month. About half of thoseregistering on the site to submit ideas opted in to receive brand communications and coupons fromPepsi. By March 2010, the project had earned Pepsi an additional 300,000 Facebook friends and wasgenerating 1,000 tweets per day. Public relations efforts yielded 6 to 12 media stories each day. Theamount of content generated by the program was staggering.Shiv Singh, Pepsi’s head of digital, noted that the Refresh Everything website was generatingmore content and traffic than many of the websites that Pepsi had traditionally pursued foradvertising buys:We are now a media company in our own right. Rather than having our consumers onsomeone else’s website, we have their traffic. Rather than spending hundreds of thousands ofdollars advertising Pepsi on a media company’s website, I can use that money to create contentfor Refresh Everything that leads to deeper engagement and a stronger relationship—andconsumers take that content and let it travel.8This document is authorized for use only by Eman Abdulqader in Strategic Marketing Spring 2016 taught by Mark Parker, Niagara University from January 2016 to July 2016.For the exclusive use of E. Abdulqader, 2016.The Pepsi Refresh Project: A Thirst for Change512-018Traditional Media ProgramsPepsiCo was one of the largest advertising media buyers in the U.S., spending $136 million tosupport its Trademark Pepsi brands in 2009.25 Through August 2010, Pepsi had spent $109 millionadvertising the Pepsi Refresh Project.26 Media buys included television advertising on NBC, ABC,Fox, MTV, Spike, and ESPN, and print advertising in People and Parade magazines.Erin Matts, chief digital officer of OMD Digital, Pepsi’s media buying agency, explained the mediastrategy: “The plan was to get people engaged early on to start a snowball effect as we reachedcritical mass. Public relations and media placements helped, but we wanted to engage people whowould give the program the start it deserved.” Rather than buying advertising spots and filling themwith Pepsi ads, Pepsi co-produced integrated programming. MTV correspondent Su Chin Pak andactor, comedian, and rapper Nick Cannon traveled around the country in a Pepsi Refresh bus to filmsegments about grant winners. NBC’s Today Show featured three weeks of stories on idea submissionsthe hosts were passionate about. Parade conducted a national poll on “What