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Will Every Refresh the World? Pepsi Refresh Project 10 th , May, 2010 Dave Priestly Sanghee Shin

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Will  Every                Refresh  the  World?  -­‐  Pepsi  Refresh  Project  -­‐    

10th,  May,  2010  

Dave  Priestly  

Sanghee  Shin  

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  1  -­‐  

Super  Bowl  Commercials  

<Sleep  Walker  Commercial>  

<Simpson  Hard  Times  Commercial>  

30  sec  commercial  in  Super  Bowl    =    

$2.6  ~  3.0  million    

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  2  -­‐  

For  the  first  Sme  in  23  years,  

Pepsi  did  not  have  any  ads  in  Super  Bowl  2010.  

Instead,  the  company  is  spending    

$20M  on  a  social  media  campaign.  

Pepsi  Refresh  

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  3  -­‐  

Project  Overview  Pepsi  Refresh  Project  Overview  

Launching  Date   January  13th,  2010  

Total  Budget   $20M+  

Project  Term   1  year  long  

Project  Agency   TBWA\CHIAT\DAY  Los  Angeles  

Target  Audience     GeneraSon  Y  and  Baby  Boomers  

Main  Goal   Building  brand  awareness  while  helping  out  communiSes  and  world  through  social  media  

How?   Donate  money  to  the  applicants  idea  that  will  have  a  posiSve  impact  on  the  world    

MarkeSng  Style   Social  media,  Cause-­‐related,  Word-­‐of-­‐mouth  style  

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  4  -­‐  

How  it  works?  

Idea  Acceptance  

• Will  accept  up  to  1,000  applicaSons  from  1st  ~  15th  day  of  every  month  

VoSng  

•  Next  month  public  vote  will  be  conducted  through  web  site  and  Facebook  as  well  

Fund  GranSng    

•  $5K,  $25K,  $50K,  $250K  will  be  awarded  to  finalists  up  to  $1.3M  every  month    

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  5  -­‐  

How  it  works?  

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  6  -­‐  

MarkeSng  Strategies  Target  Audience  

GeneraSon  Y  *  Tech-­‐Savvy  

*  Digital  NaSve  

*  Family-­‐Centric  

*  Achievement-­‐Oriented  

*  Meaningful  Work  

*  Seeking  New  Challenges  

Baby  Boomers  *  Work  Centric  

*  Challenging,  ConfrontaSon  

*  Abundant,  Freedom  

*  Confident,  Independent  

*  Want  to  make  differences    

*  CompeSveness  

“…  Pepsi  symbolized  youth,  but  …  loyal  consumers  are  boomers…  Both  groups  are  powerful  agents  of  change…  The  majority  of  ideas  are  submiied  by  boomers  and  they  are  the  fastest  growing  demographic  on  

Facebook…  They  have  Sme,  are  computer  savvy…”  –  David  Dreyer  of  TBWA\CHIAT\DAY  

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  7  -­‐  

MarkeSng  Strategies  Cause  MarkeSng  

People  

Product  

Price  

PromoSon  

Place  

TradiSonal  4P  +  1P  

Increasing  Favorable  Customers  

Borrowing  Brand  Equity    

Increasing  PosiSve  ConversaSon  

Spreading  Responsible  ConsumpSon  and  Spending  

Meaning  instead  of  Products  

Concrete  Brand  Building  

“…  69%  of  Millennials  will  consider  a  company’s  social  &  environmental  commitment  when  deciding  where  to  shop  and  a  whopping  89%  are  likely  to  change  to  switch  from  one  brand  to  another  if  the  the  second  

brand  is  associated  with  a  good  cause”  –  Millennial  Case  Study  by  Cone  Inc.  

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  8  -­‐  

MarkeSng  Strategies  WOM  MarkeSng  

CompeSSon  Style  • To  get  vote,  applicants  spread  the  project  

• Losers  could  apply  at  next  month  

Engagement  Style  • ParScipants  talks  posiSvely  

• ParScipaSon  change  consumer  into  advocates  

TargeSng  AcSvist  • Trust  more  on  acSvists  &  influencers  

• Advocates  will  support  community  

• 94% people trust Word of Mouth

• 1,000 advocates = 190K direct reach

• 90% advocates talk about the brand positively

• 70% talks include recommendation

• When advocates talk, brand grow

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  9  -­‐  

MarkeSng  Strategies  Using  Social  Media  

Understand  • New  way  of  people  connect  and  communicate  

• Increased  importance  of  Social  Media  

Reach  Target  • Tech  savvy  and  ‘Always-­‐on’  generaSon  

• Word  of  Mouth  markeSng  

Viral  &  Easy  • Social  media  is  viral  and  easy  to  access    

• Medium  is  the  message  

Imperishable  • “Not  a  sprint  but  a  marathon”  

• Deliver  message  on  a  sustainable  plavorm  

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  10  -­‐  

Crisis  Management  

•  Partnership  with  reputed  NPOs  including  GOOD,  Global  Giving,  Do  Something  

Screening  by  Reputed  OrganizaSons

•  VoSng  results  are  shown  in  real-­‐Sme  with  transparency  

SelecSon  by          Voters  

•  Hiring  2  professional  PR  companies  to  handle  social  media  around  Refresh  Project  

Hiring  Professional    PR  Company  

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  11  -­‐  

The  Four  Values  of  Web  2.0  •  Consumer  co-­‐creaSon  •  Social  AffiliaSon  

•  Digital  self-­‐expression  •  Sharing  

According  to  HBS  Case:  UnME  Jeans:  Branding  in  Web  2.0  

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  12  -­‐  

Facebook  Page:  Low  User  Engagement  &  CogniSve  Input  

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  13  -­‐  

Facebook  App:  medium  engagement    &  cogniSve  input  

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  14  -­‐  

Idea  Submission:  High  engagement  &  cogniSve  input  

Steps  involved  •  Download  toolkit  •  11-­‐page  guide  •  10-­‐step  process  •  Photo/Video  creaSon      &  upload  

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  15  -­‐  

Campaign  Comparison    

Pepsi  Refresh  also  has  an  App  page  

hip://video.thecoca-­‐colacompany.com/presscenter/avcenter/view/fins  

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  16  -­‐  

Campaign  Comparison:  CreaSng  Awareness    

All  four  values  of  Web  2.0  being  uSlized  

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  17  -­‐  

Campaign  Comparison  Pepsi:  Refresh   Coca-­‐Cola:  Live  

Posi0vely  Comparison  

Campaign  Type   Social  Responsibility   Social  responsibility   Match  

Target   GeneraSon  Y   GeneraSon  Y   Match  

Campaign  Focus   Cause   Product   No  Match  

Social  media  Channel   Facebook  Website    Twiier  

Facebook  Website  

Pepsi  

Facebook  Fans   706,080   5,448,960   Coca-­‐cola  

Twiier  Followers   26,543  (encourages  individual  tweeSng  about  refresh)  

13,974  (no  campaign  menSon)  

Pepsi  

Campaign  Length   4  months  (Broken  into  1  month  segments)  

2  months(1  month)   No  Match  

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  18  -­‐  

Campaign  Comparison:  Website  

More  Product  Focus    More  Engagement  Focus    

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  19  -­‐  

Campaign  Comparison:  0nline  audience  

According  to  www.alexa.com  

Pepsi  ge}ng  more  response  from  GeneraSon  X  &  Y  

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  20  -­‐  

Campaign  Comparison:  Website  Pepsi  Refresh   Live  Posi0vely  

Online  Engagement  Levels  

3  levels  to  choose  

many  

Ease  of  engagement  

1  or  2  clicks   4  to  5  clicks  &  website  change  

Digital  Self-­‐expression  

10-­‐step  process  to  post  ideas  

DonaSon  or  Offline  involvement  

Sharing   Ideas  posted  on  homepage  

none  

Co-­‐creaSon   Voters  and  idea-­‐makers  

None  

Both  sites  have  a  bounce  rate*  of  about  

45%  

*The  percentage  of  visits  that  consist  of  a  single  page  turn  

According  to  www.alexa.com  

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  21  -­‐  

Average  website  ac0vity  for  past  3  months  

Campaign  Name  

Page  views  per  user  

Time  on  Site  (in  minutes)  

Percentage  of  Global    Page  views  

Alexa  raSng  

Live  PosiSvely   1   Less  than  2   0.00001  

Refresh   2.6   Over  3  ½     0.00054  

Campaign  Comparison:  Website  

According  to  www.alexa.com  

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  22  -­‐  

EvaluaSon  Pros   Cons  

•  Building  new  long-­‐term  brand  equity  

•  VoSng  process  eliminates  the  chance  for  blame  

•  Cause  related  markeSng  will  increase  the  preference  of  the  brand  

•  Well-­‐designed  crisis  management  •  ImplemenSng  WOM  markeSng  •  Increasing  awareness  by  being  absent  from  Super  Bowl    

•  Too  high  involvement  •  Must  use  integrated  markeSng,  not  just  online  

•  Long-­‐term  plan  is  not  clear  •  Too  heavy  investment  on  project  that  has  no  precedent  

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  23  -­‐  

Should  Pepsi  have  been  in  the  Super  Bowl?  

Not  Necessarily   According  to  www.adsofsuperbowl.com  

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  24  -­‐  

Future  Refresh  

Refresh  High  engagement  Social  Media    Campaign  

Super  Bowl  2011  TradiSonal  Media    

Campaign  

Following  results  of  Refresh  Low  engagement    Social  Media    Campaign  

IMC  Mixing  SM  and  

tradiSonal  channels  to  redirect  

audience  back  online  

Social  Media  &  Interac0ve  Management   Dave  Priestly  &  Sanghee  Shin,  2010/05/10      -­‐  25  -­‐  

References  1.  Pepsi  Refresh  Official  Site,  hip://www.refresheverything.com/  2.  The  Best  Super  Bowl  Ad  You  Didn’t  See  on  Sunday,  hip://thewisdomguy.com/?p=401  3.  Pass  or  Fail,  Pepsi's  Refresh  Will  Be  Case  for  MarkeSng  Textbooks,  

hip://adage.com/digital/arScle?arScle_id=141973  4.  Pepsi  Refresh  Project:  An  Insider's  View  -­‐  Guest  Post  by  Bonin  Bough,  

hip://beth.typepad.com/beths_blog/2010/02/pepsi-­‐refresh-­‐project-­‐an-­‐insiders-­‐view-­‐guest-­‐post-­‐by-­‐bonin-­‐bough.html  

5.  Pepsi  to  Skip  Super  Bowl  Ads  in  Favor  of  $20M  Social  Media  Campaign,  hip://mashable.com/2009/12/23/pepsi-­‐super-­‐bowl/  

6.  Super  Bowl  Share  of  Voice  for  Food  &  Beverages  Ads,  hip://www.adsofsuperbowl.com/  

7.  The  Pepsi  Refresh  Project:  Inside  the  Secret  Formula,  hip://www.vitaminimc.com/2010/05/pepsi-­‐refresh-­‐project-­‐inside-­‐secret.html  

8.  Alexa.com,  hip://www.alexa.com