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Overview: Sipping a Can of Ice-Cold Criticism A progressive brand reputation, an open outlook and diversity are three attributes PepsiCo prides itself on. In addition to thriving as a conglomerate in the food and beverage industry, the brand maintains its forward thinking and contributions to society. It has actively worked to better its brand worth. For over a century, the brand has worked to maintain the reputation behind its name. For decades, PepsiCo has promoted campaign after campaign, winning the hearts of audience members. The 1983 “New Generation” campaign was revered (Herrera, 2009). That was until its 2017 “Live for Now Anthem” campaign and the release of the “Jump In” commercial featuring Kendall Jenner. The hearts of PepsiCo’s audiences were not won over this time. Following the release of the advertisement on April 4, 2017, the brand received nationwide condemnation. Stakeholders questioned how such an advertisement could have been approved PepsiCo’s leaders, let alone having been published on social media. PepsiCo had no choice but to go into crisis communications mode within a day of the advertisement’s release, removing it from social media. Many members in society expressed disdain for the advertisement and accused the brand of trivializing epic movements, including Black Lives Matter and the Civil Rights movement. Consequently, numerous accusations of political and societal ignorance were directed at PepsiCo. It is without doubt that audiences members are paying closer attention to companies who show interest in current social issues. An increasing number of stakeholders take social-political advocacy into account when making purchasing
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decisions (Dodd, 2015). There is a direct impact of messages on the media and relationships with their target audiences. When addressing the public, PepsiCo asserted that the purpose of this campaign was created with good intentions. However, PepsiCo expressed its sincerest apologies for the misinterpreted advertisement, claiming the brand did not intend to offend anyone, their backgrounds or their societal statuses. The Jenner Pepsi ad controversy touched on several key issues, including social media management, political advocacy, crisis communications, media relations and brand management. The following case study analyzes if a globally recognized brand, like PepsiCo, can successfully execute campaigns that take on social or political issues.
Company Background: Bottled History History of PepsiCo Since its inception into the market in 1898 by founder Caleb Davis Bradham, there were high expectations for PepsiCo. Originally known as “Brad’s Drink,” the carbonated and bubbly concoction included a mixture of sugar, vanilla, rare oils, carbonated water and cola nuts. In less than a year’s time, it was rebranded as PepsiCo, receiving its first logo. In 1902, the brand began its first print advertising efforts in the New Bern Weekly Journal. PepsiCo experienced exponential growth leading up to June 1903 when it became an official trademark. Reaching in sales up to 20,000 gallons, Bradham decided to sell the soda in bottles. During World War I, the increased sales and rationing of sugar began, skyrocketing prices in the market. PepsiCo as a franchise could not afford the climbing price changes and fell short of its consumer’s demands. In May 1923, PepsiCo declared 4
bankruptcy having no choice but to sell its assets for $30,000 to Craven Holding Corporation. With dropping sales, various name adjustments and different trademark owners through 1934, the brand once again became PepsiCo, finally prevailing in the market again with a breakthrough year. Leading the industry in innovation, PepsiCo became an international brand, debuting numerous serving beverage sizes and originating the first national diet soft drink in America. With numerous advertising campaigns under its belt, PepsiCo is an internationally acclaimed brand. Acquiring new brands and exhibiting revolutionary innovation in its products, PepsiCo officially surpasses $1 billion in sales by 1994. In 2018, PepsiCo will celebrate its 120th anniversary (“What We Believe,” 2017).
Corporate Character Mission Mission PepsiCo works to serve its consumers exemplary products and service in the food and beverage industry. It strives to augment a prosperous business model through the enrichment of its business partners and the communities the brand operates in. In addition, PepsiCo encourages the career growth of hundreds of thousands of employees providing opportunities within the business. The brand operates with the ideals of honesty, fairness and integrity (“PepsiCo Mission,” 2017).
Values ●
Sustained Growth: PepsiCo strives to encourage people and company
performance growth and making a difference for the future (“PepsiCo Mission,” 2017).
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●
Empowered People: PepsiCo values employees who think freely, while still
considering the wellbeing of the company (“PepsiCo Mission,” 2017). ●
Responsibility and Trust: PepsiCo believes that the two aspects that are the
foundation for growth are responsibility and trust (“PepsiCo Mission,” 2017).
Brand Personality PepsiCo is known for its long-standing rivalry with its main competitor, Coke. It is important to compare the two organizations’ brand personality, as the two evolved in reaction to each other. The soft drink conglomerates have been known to use marketing as a weapon against its competitor. For example, in 1979, PepsiCo created a print advertisement campaign entitled the “Pepsi Challenge,” which put PepsiCo and Coke against each other in a blind taste test. The advertisement described PepsiCo as the victorious brand (Johnson, 2011). One way that the two soft drink companies differ is within their brand personalities. Coke has been known for its emotional branding (Johnson, 2011). One way Coke has used emotional appeal to attract consumers is through emphasizing diversity. The brand is recognized for its advertisements promoting a strong sense of community and overcoming differences through universal similarities (Johnson, 2011). Another way Coke uses emotional appeal is embracing family life. This emphasis on relating to family is depicted in the company’s Christmas ads, which has included a family of animated polar bears bonding over their love of Coke (Johnson, 2011). PepsiCo, conversely, has been known for its fun, energetic ads, mainly targeting teens and even pre-teens (Johnson, 2011). Although the brand does attempt to appeal to children, it does not focus on the familial aspect, like Coke. Instead, PepsiCo focuses
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on attracting a young audience. Historically, the company has been known for its fun, sometimes even humorous ads, that pull in pop cultural references, like sports and music (Johnson, 2011). Over the years, the soft drink brand has featured various groundbreaking pop stars to target a youthful audience, including Madonna, Beyoncé and even Michael Jackson. In 1983, PepsiCo unleashed its “New Generation” campaign with the King of Pop, Michael Jackson as the celebrity endorser (Herrera, 2009). This advertisement was seen as a game-changer to the industry, as the soft drink company successfully weaved itself into Jackson’s music and made the two inseparable. As a result, PepsiCo became recognized as youthful, while Coke was associated with an older demographic (Herrera, 2009).
Corporate Reputation PepsiCo is a company that is known for its efforts that go beyond just selling its products. In 2014, PepsiCo was named the World’s Most Ethical Company by the Ethisphere Institute for eight consecutive years for its remarkable ethics and compliance programs (“PepsiCo Named,” 2014). The soft drink company believes that acting ethically is crucial for its business. For example, in 2010, the soft drink company launched its Refresh Project. For the first time in 23 years, PepsiCo opted out of creating advertisements for the Super Bowl, which is known to be one of the most prominent times of the year for companies to advertise. PepsiCo has been known for its past memorable Super Bowl ads, which shows its dedication to generate goodwill. The soft drink brand took the $20 million it
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would have spent on Super Bowl commercials and instead created the Refresh Project social media campaign (Warren, 2009). This philanthropic project encouraged PepsiCo consumers to submit different ideas on how to refresh their communities. The six different categories that a participant could enter included health, arts and culture, food and shelter, the environment, communities and education (Gregory, 2010). PepsiCo claimed that the company would offer up to 32 grants each month to winning submissions (Gregory, 2010). It is important to note that within two years of its launch, PepsiCo dismissed the Refresh campaign. The company was perceived to have halted the project, as PepsiCo was losing value to competitors (Bida, 2012). Part of the reasoning for PepsiCo’s Refresh Project was its attempt to connect more with millennial consumers. This was not the only initiative the company took to engage with younger generations. The soft drink announced that in 2012, PepsiCo would utilize 100 percent recycled plant materials into beverage packaging (“PepsiCo Hits,” 2011). This target demographic is known for its interest in personal efficiency, as their consumer decisions are made based on company’s environmental and greater good efforts. Millennials tend to take into consideration not only the quality of the product, but also the other contributions the brand has made in corporate social responsibility. That being said, PepsiCo has made several attempts to engage with millennials, and can help justify why the “Live for Now Moments Anthem” was created.
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Timeline of Achievements PepsiCo has a long standing reputation of being an exemplary brand. Dating back to its beginnings, the 1961 merger of PepsiCo and Frito-Lay took place. The merger would eventually prove that the brands would be comprised of some of the most globally recognized products. In 1966, Doritos would be introduced into the marketplace, becoming one of the United States’ most popular snack chips. In 1970, PepsiCo was acknowledged as an innovator in the industry. PepsiCo became the first company to introduce the two-liter plastic bottle. Consumers preferred a lightweight option over the commonly distributed glass bottles that historically weigh more. Following the innovation of the first two-liter plastic bottle, 1974 marked the year PepsiCo became the number one cola drink in supermarkets for the first time in its history. Continuing with acquisitions and the introduction of numerous products over the next decade, PepsiCo’s list of achievements significantly proliferated. The year 1985 commemorated PepsiCo rise to the largest beverage company in the industry, with products distributed in approximately 150 countries and territories. PepsiCo tangibly grew across the globe in addition to its intangible marketing efforts. The brand introduced “Chase,” Michael Jackson’s first-ever episodic commercial, as a four-part advertisement during the 1988 Grammy Awards. The fourpart compilation became the most-watched commercial in advertising history. With ongoing organizational progression throughout the 1980s, PepsiCo would continue to acquire new companies under its umbrella with its Yum! brands spinoff in 1997. Some
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of these companies include Pizza Hut, Inc., Mug Root Beer and Kentucky Fried Chicken (KFC). In 1989, PepsiCo earned a ranking in Fortune 500’s top 25. Four years later, PepsiCo would famously be redisplaying its bright neon sign on Broadway after an absence from Times Square for nearly 27 years. The year 2001 would mark a monumental merger of PepsiCo and the Quaker Oats company. A year later, the Pepsi-Cola trademark celebrates 100 years. In 2007, PepsiCo continues moving forward with initiatives that directly impact interdependence between society as a whole and corporations. It develops and introduces Performance with Purpose, a promise made to stakeholders to expand its portfolio and acknowledge emerging markets. With this initiative, PepsiCo strategically would aim to invest US $1 billion over four years’ time in the Chinese marketplace. Three new brands joined PepsiCo in 2012, increasing its number to 22 in total. Brisk, Diet Mountain Dew and Starbucks ready-to-drink beverages were $3 billion companies opting to join the already impressive portfolio. Again, 2014 and 2015 marked memorable years for PepsiCo. First, came the ever familiar Pepsi Spire, a new wave beverage dispenser with production capabilities of more than 1,000 options at the consumer’s fingertips. Following the year of the Pepsi Spire, PepsiCo celebrated its 50th anniversary as a compound beverage and food company (“Our History”). More recently in 2017, the company was acknowledged for its continued global endeavors and was named by Forbes as one of the world’s most admired companies
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along with claiming the 44th spot on the Fortune 500 list (“Awards & Recognition,” 2017).
Political and Social Advocacy There has been an increase in importance in companies taking a stance in political and social issues. Now, consumers begin to look for companies that hold similar values and beliefs that they do. In order to stand out against competitors, brands must take a stand on current social and political events, which makes them more recognizable and relatable for customers. PepsiCo has been known for its political and social advocacy efforts, as the company emphasizes diversity and inclusion (“PepsiCo Takes a Stand,” 2014). One example of this is the brand’s support of gay pride and against bullying (“PepsiCo Takes a Stand,” 2014). In 2014, the soft drink company created its “Purple On!” campaign to support the Gay & Lesbian Alliance Against Defamation (GLAAD). On October 16, GLAAD’s annual Spirit Day, Americans are encouraged to wear purple and to take a stand for the lesbian, gay, bisexual and transgender youth. PepsiCo’s “Purple On!” campaign included a social media campaign, using the hashtags #SpiritDay and #PurpleOn (“PepsiCo Takes a Stand,” 2014). The brand also encouraged its employees to wear purple on Spirit Day, sign GLAAD’s pledge against bullying and share GLAAD’s antibullying resources with others (“Pepsi Takes a Stand,” 2014). Overall, PepsiCo is known for its political and social advocacy, which explicates why the company decided to comment on the various racial tensions and social protests that have recently occurred.
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“Live For Now Moments Anthem” The “Live for Now” campaign was curated to encourage consumers to celebrate all of life’s moments. According the original press release which has since been taken off the website, PepsiCo hoped to evoke passion and motivation into the viewers of the “Jump In” advertisement. The brand expressed how individuals should have passion in their actions, with a common goal to let go and not hold back, to convey the spirit of people who take chances. The brand wrote, “It features multiple lives, stories and emotional connections that show passion, joy, unbound and uninhibited moments. No matter the occasion, big or small, these are the moments that make us feel alive” (Christopher, 2017, p. 1). Additionally, the press release stated, “At the heart of PepsiCo is Performance with Purpose – our fundamental belief that the success of our company is inextricably linked to the sustainability of the world around. We believe that continuously improving the products we sell, operating responsibly to protect our planet and empowering people around the world is what enables PepsiCo to run a successful global company that creates long-term value for society and our shareholders” (Christopher, 2017, p. 9).
Timeline April 4, 2017: PepsiCo publishes a press release explaining the purpose of the brand’s new advertisement as part of an ongoing campaign (Christopher, 2017). April 4, 2017: The “Jump In” advertisement was released for PepsiCo’s Live for Now campaign (Christopher, 2017). April 4, 2017: The advertisement received immediate negative attention, mostly with backlash on social media.
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April 4, 2017: PepsiCo withdrew the controversial advertisement less than a day after its release. April 5, 2017: Within 24 hours, PepsiCo released a statement on Twitter apologizing for the misguided advertisement. PepsiCo acknowledges any wrongdoing in a same-day statement following the release of the commercial.
(Source: @pepsi, 2017)
April 5, 2017: Bernice King voices her disbelief in a tweet.
(Source: Pomarico, 2017)
April 5, 2017: PepsiCo apologizes to King on Twitter in response to her tweet.
(Source: Pomarico, 2017)
October 1, 2017: In the Keeping up with the Kardashians season 14 premier, Jenner publicly addresses the issue for the first time, apologizing (Pomarico, 2017).
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Responses Company Response PepsiCo took to Twitter to respond to the controversy, as this was the main platform where consumers shared their reactions. It is important to note that the company only used this social media outlet to publish its apology. PepsiCo tweeted its apology statement in the post pictured above. PepsiCo also replied to Martin Luther King’s daughter Bernice King, who tweeted about her disapproval of the advertisement.
Key Influencers’ Responses In the press release, Jenner’s original comment stated, "I am thrilled to join the legendary roster of icons who have represented their generations and worked with PepsiCo. To me, PepsiCo is more than just a beverage — it registers as a pop culture icon & a lifestyle that shares a voice with the generation of today. The spirit of PepsiCo — living in the 'now' moment — is one that I believe in. I make a conscious effort in my everyday life and travels to enjoy every experience of today" (Christopher, 2017, p. 5) Jenner’s optimism and support of the campaign was depleted following the backlash. Numerous celebrities voiced their opinions on the controversial advertisement. Celebrities of diverse background expressed concern for the misguided message the advertisement conveyed. Twitter was the most popular platform in which celebrities and other key influencers expressed their views. Often, the aggravated Twitter users would incorporate images and GIFs to drive the point home about the offensive advertisement.
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"The fact that this somehow made it through — I can't imagine how many meetings, and edits, and pitches, and then got the thumbs-up from who knows how many people is absolutely mind-boggling," said Jimmy Kimmel on the advertisement (Rahman, 2017, p. 1). He was not a fan and felt that the discussions around the advertisement should have been better thought out. Travon Free, a well-recognized American comedian, tweeted to his nearly 100,000 followers, “The Kendall Jenner PepsiCo fiasco is a perfect example of what happens when there’s no black people in the room when decisions are being made.” This tweet received approximately 9,000 retweets, over 22,000 likes and upward of 200 comments. Nearly five months following the backlash of the commercial, in an episode of Keeping up With the Kardashians, Jenner claimed, “I would never purposely hurt someone, ever,” Kendall said tearfully. “You don’t know when you’re in the moment, and, like, it was the most —” She grappled for the right words. “I just felt so f‑‑‑ing stupid. The fact that I would offend other people or hurt other people was definitely not the intent. And that’s what got me the most, is that I would have ever made anyone else upset” (Yahr, 2017, p. 27).
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Key Advocacy Group Responses
(Source: @_TARYNitUP, 2017)
Key advocacy groups, specifically activists in the Black Lives Matter movement condemned the PepsiCo ad, as they felt it did not accurately depict the act of protesting against police brutality (Oppenheim, 2017). One reference that did not sit well with social activists was the parallel drawn between Jenner approaching a line of police officers and protester Ieisha Evans, who stood peacefully and proudly against officers during a protest in Baton Rouge (Oppenheim, 2017). A Black Lives Matter activist tweeted the two photos showing the similarity between Jenner’s actions in the ad and Evan’s stance. Elle Hearns, a former Black Lives Matter organizer, stated that the commercial trivializes the sacrifices millions of people have made in order to protest for equality (Victor, 2017). One of the most influential reactions was by Bernice King, Martin Luther King’s daughter, who took to Twitter to share her thoughts on the ad. On April 5, King tweeted an image of her father during a civil rights march, along with the tweet, “If only Daddy would have known about the power of #Pepsi” (Kaufman, 2017). King received over
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150,000 retweets, nearly 300,000 likes and 1,670 comments surrounding the tweet. Along with King, other social activists reacted negatively to the advertisement. Celebrity and social activist Lena Dunham also reacted negatively on Twitter, stating, “Assuming everything that can be said about faux-test Pepsi ad has been said so I’m just gonna go with this: it didn’t make me want Pepsi” (Calderone, 2017).
Social Media Responses
(Source: www.brandwatch.com, 2017)
The PepsiCo ad created a huge social media storm, as millions took to social media, mainly Twitter to share their feelings on the commercial. According to Amobee, a company that monitors digital content, an estimated 77 percent of social media posts that included the phrase “tone-deaf” were about Kendall Jenner’s PepsiCo ad (Joyce, 2017). According to Brandwatch, a social media monitoring company, the soft drink company’s social mentions increased in mentions over 21,675 percent between April 3 and April 5 (Joyce, 2017). On April 5, PepsiCo was mentioned on Twitter, Facebook and Instagram a total of 1.25 million times, with 58.6 percent of mentions negative (Joyce, 2017).
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In response to the ad, some threatened to boycott the soft drink brand. New York Times columnist Charles M. Blow took to Twitter and stated that he would boycott all PepsiCo products until the company apologized for “this blasphemy” (Nicholson, 2017, p. 4). Also, the hashtag #boycottpepsi started trending, and included tweets from the right and left sides (Nicholson, 2017).
News Media Responses The majority of news outlets’ responses were negative, as it was perceived to make light of a very serious social issue. One of the major criticisms from the media was PepsiCo’s decision to feature Kendall Jenner, known to be a white and wealthy celebrity, in an ad intended to promote unity and understanding (Grady, 2017). It is also important to note that Jenner has been guilty of culture appropriation, specifically in her fashion choices. In 2015, Jenner received backlash after cornrowing her hair, which is historically known to be a black hairstyle (Victor, 2017). Overall, the media depicted the ad to be a racial exploitation (Bale, 2017). News media also criticized PepsiCo for its poor execution of the Kendall Jenner ad. The soft drink company was condemned for borrowing imagery from the Black Lives Matter movement (Victor, 2017). Many news outlets commented on the scene where a Jenner approaches a line of police and hands an officer a can of PepsiCo, which he gladly accepts (Grady, 2017). This representation was seen to have appropriated the famous image taken of protester Ieshia Evans peacefully standing up to police during a protest in Baton Rouge. The brand was also perceived to have created this ad in hopes of monetary gain (Victor, 2017).
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Another aspect that did not sit well with news outlets was the actual execution of the ad. Many reporters exposed the fact that the commercial was created by an allwhite team of PepsiCo employees (Bale, 2017). Also, PepsiCo’s attempt at depicting diversity was criticized for portraying deeply rooted stereotypes. For example, the Asian man featured in the video passionately plays his cello, on a rooftop. The attempt at including several diverse people ended up further perpetuating racial stereotypes. It is important to note that the soft drink company’s apology was also criticized, as many felt it was too focused on Jenner, and not enough on the public (Grady, 2017). Overall, the ad was also called “tone-deaf” by many, as the representation of recent social protests was unrealistic (Victor, 2017). Although the majority of news media coverage of negative, a handful of journalists stood up for PepsiCo and believed that the whole controversy was intentional. According to an article by the Los Angeles Times, crisis management expert Eric Schiffer felt that PepsiCo created this controversy intentionally, as the net effect of the commercial was positive and created a global conversation about the ad (Roy, 2017). Simply put, Schiffer argued that PepsiCo was successful, as the company received up to $400 million of free media coverage (Roy, 2017). Ian Bogost, contributing editor at The Atlantic, also argued that the controversial PepsiCo advertisement was an “undeniable success” (Bogost, 2017, p. 5). The commercial was intended to get people to “join the conversation,” and even though the majority reacted negatively, they did in fact “join the conversation” by expressing their feelings over social media. Bogost claims that the PepsiCo ad shows the power of PepsiCo branding rather than social justice (Bogost, 2017, p. 12). Further, the short film
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offered consumers an “alternative reality” where people unite over their love of a soda instead of fighting over racial inequality (Bogost, 2017, p. 14). Overall, the news media criticized the ad for its tone-deaf interpretation of social protests, however, some did defend the ad and claimed PepsiCo wanted to ignite controversy.
Business Impact
(Source: www.TMZ.com, 2017)
Despite harsh criticism, PepsiCo’s controversial Kendall Jenner ad did not negatively impact its stock. In fact, according to the chart above, the soft drink company’s stock increased right after the commercial was released, and started to decrease immediately after PepsiCo pulled the advertisement at around 1:20 p.m. on April 5 (“PepsiCo Ad Stock Surges,” 2017). According to a poll conducted by Morning Consult, the impact on the perception of PepsiCo was not as dramatic as would be anticipated. Results from the survey found that around half of stakeholders of diverse backgrounds stated that the commercial did not have an impact on their purchasing decisions (Morning Consult, 2017). Also, an
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estimated 44 percent of people actually had a more favorable view on the soft drink company after viewing the commercial. Only 25 percent of poll participants had a less favorable view (Morning Consult, 2017). It is also important to note that while the advertisement was highly criticized for its insensitivity to different social movements, the majority of minorities actually saw PepsiCo In a more favorable light. According to the survey, 75 percent of Latinos and 51 percent of African Americans felt that the commercial increased their interest in the brand (Morning Consult, 2017). It is important to note, however, the soft drink company faces other long-term issues regarding its marketing. As an increasing number of people look to healthier beverage options, PepsiCo has been struggling over the past few years to stay at the top of the industry. Even with diet and healthier options, the soft drink industry has to endure a decline in sales. For example, Diet PepsiCo was among the steepest volume declines in 2016, at 9.2 percent (Kell, 2017). Therefore, the “Live for Now Moments Anthem� may have not necessarily contributed to an extreme dip in sales: however, PepsiCo does face a long-term decline as many people shift to health-conscious beverages.
Business Performance and Sustainability In 2015, PepsiCo developed and published Performance with a Purpose 2025 Goals. This program is a ten-year initiative to drive forward with the ideals and values of a healthier and more sustainable future. With these efforts, PepsiCo worked to continue initiatives as a sustainable brand in the marketplace throughout 2016. In addition to sustainable initiatives, PepsiCo worked to incorporate more nutritious alternatives having delivered 260 million servings of healthier options. The
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company and its 22 brands took sustainable measures to help generate revenue of nearly $63 million in 2016 (“One Year In,” 2017). Topics such as “public health and nutrition, climate change, resource scarcity and human rights,” pose as challenges requiring a coordinated and thorough undertaking, discussed Mehmood Khan, PepsiCo Vice Chairman and Chief Scientific Officer, Global Research and Development,” (“One Year In,” 2017, p. 6). PepsiCo understands the importance of acting sustainably and has gone as far as providing an alphabetical search page to its stakeholders for topics related to sustainability (“One Year In,” 2017, p. 9). While there was noticeable backlash following the release of the advertisement, PepsiCo’s financial did not falter. Leading up to the release, on March 31, 2017, the company’s stock price closed at $111.86 per share. On the day of the release, April 4, 2017 PepsiCo’s stock price closed at $112.08 per share, surprisingly having increased by $.22 in four days’ time. With #boycottPepsi hashtags surfacing all over the internet the week of the release, it seemed likely stock prices would drop significantly. However, that was not the case. On April 10, PepsiCo’s stock price closed the day at $112.02 per share. Up through December 13, 2017, PepsiCo’s stock prices have experienced highs and lows as with most successful conglomerates, but have steadily increased. The company closed December 13 out at $117.80 per share.
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(Source: Yahoo Finance, 2017)
(Source: Yahoo Finance, 2017)
Some Challenges Pepsi May Face As with any brand, PepsiCo will likely find challenges in campaign execution and cognizance to diverse audiences. The public will likely pay close attention to upcoming advertisements in order to discern if PepsiCo has learned from its mistakes. Public scrutiny will test the brand. Provided the brand is perceptive and open to all scrutiny, it will progress. According to McGeady, the damage will not be irreparable (McGeady, 2017, p. 12). Was this bad publicity actually good publicity for the brand? The saying might be
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accurate in the case of the Kendall Jenner Ad fiasco. Has PepsiCo already made its comeback? Time will continue to tell.
Looking Ahead: PepsiCo Copes and Sees a Bright Future For future campaigns that tie into PepsiCo’s affiliation with political advocacy, it should conduct focus groups before rolling out a commercial. PepsiCo can include people with culturally diverse backgrounds to offer insight on campaign execution regarding topics surrounding past and present political movements. PepsiCo can look at past campaigns that have been successful, be it the company’s own or those of competitor organizations. With political advocacy, big brands such as PepsiCo are looked to for taking a stance on important matters. Tailoring advertisements with the idea in mind that the audiences are diverse will help cater to the intentional demographic.
Future of Social and Political Advocacy As younger generations become more attached and involved in politics, brands are becoming aware that their stances will be taken into consideration and purchasing power is shifting. Millennials and Generation Z’s are fueled by brands participation from a societal and political standpoint. The two groups are advocates for deeper connection and relatability with brands they invest in. Research shows younger age groups, including millennials and Generation Z’s, more frequently interact with corporations with similar belief alignment than older age groups do. Beliefs of senior age groups are less likely to align in the corporations they
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involve themselves with. “Those in the middle-aged groups engage in both behaviors, but to a lesser extent overall” (Dodd, 2015, p. 1). Controversial topics generate engagement, thus, enabling backlash when commercials such as “Jump In” are negligent to the interpretations of a diverse audience. Millennials and Generation Z’s are more likely express strong opinions on their political and societal surroundings. As two groups of PepsiCo’s demographic, it crucial for PepsiCo to be attentive to these groups stances. For age groups ranging between 18-25 and 26-35, their interests are demonstrated in their purchases from a company. This occurs more often when their beliefs align with the social cause that a company promotes (Dodd, 2015). Adversely, taking the wrong stance opposing the majority, may have a significant negative impact. Research shows, “when companies engage in controversial socialpolitical issues they ultimately risk the loss of profits and attention of activist groups that may result in the expenditure of additional resources,” (Dodd, 2015, p. 2). Every political and societal issue is different, however, depending how a brand vocalizes its support or opposition of an issue can greatly impact the continued or discontinued involvement of their consumers (Dodd, 2015).
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Gregory, S. (2010, February 3). Pepsi Skips Super Bowl TV Advertising for Social Media. Retrieved from http://content.time.com/time/business/article/0,8599,1958400,00.html Herrera, M. (2009, July 3). Michael Jackson, Pepsi Made Marketing History. Billboard. Retrieved from https://www.billboard.com/articles/news/268213/michael-jackson-pepsi-mademarketing-history Johnson, J. (2011, March 24). Pepsi vs Coke: The Power of a Brand. Design Shack. Retrieved from https://designshack.net/articles/graphics/pepsi-vs-coke-thepower-of-a-brand/ Joyce, G. (2017, April 7). Data Reveals the Extent of the Backlash to the Kendall Jenner Pepsi Ad. Brandwatch. Retrieved from https://www.brandwatch.com/blog/react-kendall-jenner-pepsi-ad/ Kaufman, G. (2017, April 5). Martin Luther King’s Daughter Subtweets Ire Over Kendall Jenner Pepsi Ad. Billboard. Retrieved from https://www.billboard.com/articles/news/7751594/bernice-king-subtweetskendall-jenner-pepsi-ad Kell, J. (2017, April 19). Bottled Water Continues to Take the Fizz Out of Diet Soda. Fortune. Retrieved from http://fortune.com/2017/04/19/coca-cola-pepsi-drpepper-soda-water/ McGeady, A. (2017, August 08). How to Survive a PR Nightmare. Retrieved from http://bigfishpr.com/how-to-survive-a-pr-nightmare/ Morning Consult. (2017). National Tracking Poll #170404 [Data file]. Retrieved from https://morningconsult.com/wpcontent/uploads/2017/04/170404_crosstabs_Dial_ v2_AG-1.pdf Nicholson, R. (2017, April 5). From Coke’s flower power to Kendall Jenner’s Pepsi ad – how ads co-opt protest. The Guardian. Retrieved from https://www.theguardian.com/business/2017/apr/05/from-cokes-flower-power-tokendall-jenners-pepsi-ad-how-ads-co-opt-protest One Year In, PepsiCo Reports Progress Against Performance with Purpose 2025 Goals. (n.d.). Retrieved from http://www.pepsico.com/live/pressrelease/one-year-in-pepsico-reports-progressagainst-performance-with-purpose-2025-goals09142017 Oppenheim, M. (2017, April 6). Pepsi ad: Kendall Jenner was effusive about protest commercial before it aired. Independent. Retrieved from
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