Pepsi revamp lacks sparkle

Pepsi packaging changes

Just over half of all fizzy drink buyers had noticed the recent changes to the Pepsi packaging; this rose to two-thirds of 15 to 24-year-olds, and of cola buyers, and to more than three-quarters of multiple brand buyers, who presumably take more interest in the sector and spend more time making their choice.

Not surprisingly, impact was highest of all among Pepsi buyers, of whom only one in five had not noticed any change. That such a major change should go unnoticed may seem remarkable, but in the semi-automatic conditions of much grocery purchase, shelf position and labelling are confirmations of a regular purchase which obviate close attention to the packaging.

On the whole, the new packaging seems to be a muted success, with most soft-drink buyers unmoved by the changes. Just over half of those who had noticed the change thought that it had made the pack very or slightly more eye-catching; and only 18 per cent thought that it made the packaging much more attractive.

The colour change has most support among women, housewives with children, and among 25 to 34-year-olds; it is more popular with Pepsi than other cola brands’ buyers. The packaging changes may be helping the brand to work more effectively on shelf against the treat of own-label, and reinforcing the important loyalty of existing buyers. But they do not seem to have caused a major impact, either in arousing attention, or providing a major counter-attraction to Coca-Cola, especially among young drinkers.

Brands bought

Seventy-seven per cent of all adults aged 15 or over had bought at least one fizzy drink in a can or bottle in the four weeks prior to our survey. The market is heavily slanted towards young people; 95 per cent of all 15 to 24-year-olds are buyers, with incidence declining through the age groups, falling to 55 per cent of the over-55s. Housewives with children also represent an important market sector, with 93 per cent being buyers. Although we did not measure weight of consumption in this survey, previous research indicates that those in the youngest age group are also the biggest buyers of individual cans, and that mothers account for a large proportion of volume bottle purchase.

Consumers demonstrate a surprising degree of loyalty for an indulgence market. Some 43 per cent of buyers claimed to have bought only one brand in the past month, and a further 46 per cent two or three, leaving seven per cent buying four or more. Although it is possible that some of the smaller brands may be under-claimed in spontaneous purchase recall, the figures still show the importance of maintaining customer loyalty and interest to keep brand share.

Coca-Cola dominates the market. The main brand was bought by 46 per cent of soft-drink buyers, and Diet Coke is virtually level at 14 per cent penetration with Tango and the main Pepsi brand. Only five other brands achieve more than six per cent purchase, two: Sainsbury’s and Tesco, being supermarket own-label.

Pepsi has a younger user profile than Coke, and than the market as a whole. Some 62 per cent of Pepsi buyers are under 35, compared with 52 per cent of Coca-Cola buyers, and 43 per cent of all fizzy-drink buyers.

Spontaneous ad awareness

Although 80 per cent of buyers can name at least one brand’s advertising, only Coca-Cola is recalled by more than half. Pepsi is named by just over a third, and Tango by a quarter of consumers. Advertising awareness is concentrated among people under 45, but, surprisingly, is not much higher among the youngest age group. Pepsi buyers are more aware of advertising for all three leading brands than average, and are nearly twice as likely as the norm to recall Pepsi advertising: this correlation is not found in other brands.

Increased purchase

Half our respondents claimed to be buying more of any named drink than before, although in some cases this may represent a seasonal increase in individual purchase, rather than brand switching. Although five per cent of buyers claim to be buying more Pepsi than they used to, three times more people are buying more Coca-Cola. Own-label products are also doing well, with a combined increase of ten per cent penetration. The buyer profiles are sharply contrasted; both Coke and Pepsi derive their increased penetration mainly from the under 35s, while own-label growth comes from older drinkers and housewife purchase.

Reasons for purchase

Just over three-quarters of buyers were buying at least one brand regularly; there were no major differences in habitual purchase between cola brands. Single-brand buyers accounted for nearly half the loyalty factor, but it is also a strong influence on multiple brand users, building repertory purchase. This indicates the necessity for manufacturers to reinforce brand loyalty, as well as to attract floating consumers.

Comparative cheapness, although influencing a third of buyers, is powerful outside the core banded market of young people, being especially high among housewife and older purchasers. It therefore seems to relate more to grocery and larger size purchase, and is probably linked to own-label popularity.

Experimentation influences the brand choice of a quarter of purchasers, but is twice as high among people who bought four or more brands. Given that we recorded claimed purchase of more than 40 brands or products, from new arrivals like Schizan to old favourites like Vimto, this highlights both the fragmentation of the market, and the strong performance of the major brands.

Impact on shelf is crucial in an impulse market, and had influenced nearly a third of purchasers. Choice at point of purchase is constant across the age range, although stronger for men than women, who are more likely to be buying pre-determined brands for other people.

Although television advertising was acknowledged as a purchase motivator by only a quarter of buyers, its influence is far more marked among 15 to 24-year-olds, where it rises to 38 per cent, and among multi-brand buyers. A third of Pepsi buyers gave TV advertising as a reason for choosing the brand, seven per cent more than for all cola buyers, demonstrating a measurable impact for the Pepsi campaign.