Pepsi's new look: Take II

OK, not to pick on Pepsi over their new logo design and how it was developed, but from where I sit the whole carbonated soft drink category seems crowded and confusing. Vanilla, cherry, diet, diet with no calories but with Ginseng, caffeine-free diet, zero...just what does it all mean and is it even offered by Pepsi and Coke anymore?

I believe there have been so many extensions of the Pepsi and Coke lines that it is very difficult for the consumer to know the differences and consumers become confused. When that confusion sets in for such low-involvement products, many times the consumer will just give up and either buy nothing at all, pick something that is known to be "good enough" or simply switch to a different category that is less confusing.

I recently went looking for Diet Pepsi Max at the grocery store and the picture above illustrates what I was looking for and what I found. Are these the same product? It just wasn't clear to me. When even the same product creates confusion in its packaging, loyal customers will simply give up on the product or just not care anymore. This defeats the whole branding effort. The more the branding is diluted and the more confusing the products become the fewer differences we see between Pepsi and Coke.

Did Pepsi misstep in switching to a new logo?

I don't know and the market will ultimately be the judge, but it seems to me that during these tough economic times that brands ought to be reassuring their customers that they are tried and true, familiar and the safe, trusted choice. I question the timing of Pepsi rolling out a new look more than anything else. It seems they created confusion at a time when simplicity is called for. As for the new logo itself, people will either love it or hate it and eventually just not really care anymore because it will fade into the noise of the category.

I give Pepsico credit, though. A recent Brandweek article tells the story of how Pepsi "invertised" to their organization prior to the roll-out of the new look. They made the right steps to make sure their messaging was grasped and embraced by their employees first prior to launching to the market.

We can learn an important lesson from this. If your organization does not understand what it is for which your brand stands then there is no chance that it will effectively projected and communicated outside your own walls and out in the marketplace.

Pepsi's new identity and logo, Is this stuff for real?

Love it or hate it, the new Pepsi logo has sparked a great deal of discussion.

An internal agency document outlines the development of the new logo and I have to wonder if this stuff is for real.

Is the Pepsi "energy field" on track or did they miss the mark?

Where we go first when considering a purchase

According to Harris Interactive, 20% of us go to search engines first when considering purchasing a product. Next we have discussions with family/friends/co-workers or, in other words, we rely on recommendations from those we know or trust.

This data is interesting, especially the fact that only 8% of people go directly to the manufacturer's website first. This clearly shows the trend toward commoditization brought on by the Internet. I believe it also spells trouble for manufacturers' brands that do not create a compelling set of qualities that resonate in consumers' minds. Unless people have some reasons to prefer your brand and seek it, chances are they are simply going to shop the category on price and basic features.

How well is your brand translated online?

Some good podcasts

David Kinard has posted some great podcasts that he has done in association with the American Marketing Association. Some of the current radio shows/podcasts you'll find at the link above are on the topics of Personal Branding, Career Management, Social Networking and New Media and Search Marketing.

I met David at an AMA conference a few years back and he's a great guy and absolutely dedicated marketing professional. I'm sure you'll find his material useful.

Guest post: 10 Reasons Why Companies and Products Fail

10 Reasons Why Companies and Products Fail
By Bill Tamminga

My research shows that this will be one of the most widely read articles I will ever write. For whatever reason, people want to know why businesses fail more than why they succeed. So this is for all the critics (and worriers) out there. Here are Ten Reasons Why Companies and Products Fail. Enjoy!

1. Lack of good ideas. Brainstorming is an absolutely essential part of new ventures. If a company wants to produce one product or service that sells, it must first come up with numerous ideas that have some potential. Most businesspeople and entrepreneurs I know brainstorm a minimum of fifty ideas before narrowing it down to the one on which they will actually work.

2. Production time is too slow. One of the ways businesspeople narrow down ideas is based on the amount of production time it will take to get the product to market. A mentor of mine suggests adding twelve months to any estimate I make in production time for new products and services. I have found his advice to be invaluable. It always takes more time than I think to complete a major project.

3. Production costs are too high. Of course, this issue is a cousin of Slow Production Time. Those twelve unplanned months of salaries, vacation days, holidays, health benefits and sick days can put your company in a significant cash crunch.

4. Voracious competitors. Everyone has seen a National Geographic or Discovery Channel episode about the African Savannah, right? Well, once you start making money, your competitors will close in like vultures on a wildebeest. Alternates to your product will begin to spring up out of nowhere like yellow thatching (google it).

5. The introduction of niche markets and customization. Niche markets and customization are great for consumers. They are also the downfall of many business ideas because of the specific demands of niche markets and the high cost of customization.

6. Government intervention. There are a slew of regulations that cover consumer and environmental safety for new products. Those hurdles must be overcome in a timely fashion for a company to make a return on its investment. Yes, I just put the words "government" and "timely fashion" in the same paragraph.

7. Poor marketing. After sinking time and money into brainstorming, product development, safety controls, and government forms, the company must now market whatever it is they are trying to sell. This is a problem if production costs have soaked up more cash than anticipated. No matter how much you believe in Guerrilla Marketing (and believe me I am a fan), you are going to need a fair amount of cash to fuel your growth.

8. Poor product or service design. Some companies don't realize that they have a poor design until they have spent thousands developing and marketing the idea only to find that consumers completely reject it. I can hear the collective "Ouch!" from many formerly frustrated but now highly successful entrepreneurs and executives who have been down this path before.

9. The company didn't listen to consumers. Spending a few thousand dollars on market research is much better than spending tens of thousands or more on a failed product.

Now for the final reason why companies and products fail... Drum roll please... Wait for it... Wait for it...

10. They don't deliver on their promises.

I was tempted to end this article after the words "Wait for it..." and let you figure it out on your own, but that would be cruel.

Here's to your success. Avoid these pitfalls at all costs.

Bill Tamminga is the author of Advanced Business Triage, a set of white papers that explain his systematic approach to business growth. There are three separate papers with specific ideas for service business owners, high-end sales professionals, and independent financial planners. To receive your copy, visit http://www.GoalRevolution.com/advanced_business_triage.html

To sign up for your FREE subscription to the GR Newsletter, visit http://GoalRevolution.com. In addition to consulting, Goal Revolution offers business courses through the GR Center for Advanced Business Studies. Our curriculum centers on teaching from such notable sources as Harvard Business School, the Gallup Organization, the University of Southern California, and more.

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