Pepsi Atom Disaster

The Cold War continues

Introduction

• Legendary rivalry between two strongest cola brands in the world

• Century old war• Although when compared in double blind

taste tests, the majority of people could not tell the difference in taste, people will swear they love one or the other.

• Coca Cola had always got an edge over Pepsi

Coke vs Pepsi

• Fanta – Mirinda• Sprite – 7up• Diet Coke – Diet Pepsi• Thumps Up – Pepsi Atom

Pepsi Atom• Launched to compete with Thumps Up• Launched during IPL- 6• Pepsi – IPL 6 Title sponsors• Pepsi Atom -The Josh Cola• 396 Cr for title sponsorship and 160 Cr for the

tournament• IPL is a youth targeted event and Pepsi has always

been known for its youth oriented campaigns.• Pepsi Atom positioned itself as much stronger,

fizzier and a sharp taste drink

“The brand’s positioning redefines masculinity and portrays the modern Indian man in a new light — someone who has mind as well as body. The soon-to-be-launched communication campaign for Pepsi Atom projects the more relevant and relatable definition of masculinity, as opposed to the much hyped mindless action,” - PepsiCo.

• PepsiCo hired Sushant Singh Rajput as its brand ambassador as he represents today’s youth

• The tagline was ‘Chalo aaj kuch akalmand kare!’ (Let’s do something intellectual)

• Thums up have a tagline of ‘Aaj kucch toofani karte hain’ (Let’s do something adventurous).

Net Result

• ATOM was rejected!!!!

Why did the Product Fail???

Product Mix

Product

• Tasted like cinnamon cola• Dint blend well with food

Place

• Product was available in super-markets and other kirana stores

• Dismantled very quickly• Reason : Product

Promotion

• The advertising campaign of Josh Cola of Pepsi “Piyo Josh Mein Jio Hosh Mein” was not that effective as Thums Up’s “Aaj Kuch Toofani Karte hain”.

• Sushant Singh Rajput could not beat Salman Khan as the face of this new strong cola drink.

Price

• Price of an introductory bottle of 250 ml was Rs. 15 and a 500 ml PET bottle at Rs. 25

• Whereas 330 ml of Thums Up is for Rs. 25 and 600ml PET bottle at Rs 34

• Though cheaper it could never stand close to its competitor

Packaging

• Bad design of PET bottle• Not catchy nor innovative• Old fashioned

End Result

• Pepsi Atom has been biggest failure of PepsiCo• Pepsi lost on its market share which was Coca

Cola’s gain