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| PepsiCo: Can Pepsi Max its fizz? |
| Amit Ranjan Rai / New Delhi Aug 16, 2010, 00:22 IST |
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PepsiCo has launched Pepsi Max, its zero-calorie, no-sugar cola, in India. The brand was first introduced in the UK and Italy in 1993 and has since been rolled out in over 40 countries. Globally, it competes with Coke Zero, Coca-Cola’s no-sugar variant, which is five time the size of Pepsi Max. Coke Zero is yet to enter India but that shouldn’t take long, thanks to Pepsi Max’s arrival. Why a zero-calorie variant when PepsiCo already has Diet Pepsi, and why now? After all, the diet cola category in India is merely one per cent of the total sparkling beverages sales of 650 million cases a year.
One, clearly, PepsiCo wants to have an edge over Coke Zero in the market as and when it arrives. The company says it wants to lead innovation in the space. Two, as PepsiCo India Executive Vice-president (marketing, cola) Sandeep Singh Arora says, consumers who have been loyal to the cola category are seeking other choices. Urban consumers, especially in the 25-plus age group, are switching to healthier juices and non-carbonated drinks. “With Pepsi Max, we are trying to address the repertoire consumer who is consuming across categories as he is concerned about his health. Max has a fantastic taste, great imagery and yet it’s sugar-free and healthy,” says Arora. “With Max in place, we hope to add incremental shares to the cola category and grow the Pepsi franchise.”
Pepsi Max’s positioning goes with the logic. The brand is targeted at 25- to 35-year-old consumers compared to Pepsi which talks to everyone from 24 to 60. This is a group which is becoming increasingly health-conscious and seeking healthier options. The focus with Max is on men in this age group in large cities. Men, because PepsiCo thinks Diet Pepsi address the health-conscious women market better. Says PepsiCo India Executive Director (marketing) Punita Lal: “Globally, diet beverages are associated with health-conscious women only. We have positioned Max as a drink with attitude and intensity to make it more appealing to men. It’s for the urban lifestyle-oriented youth who is fitness conscious and looking for a strong attitude quotient in his beverage options but is not willing to compromise on taste.” Moreover, says Arora, Diet Pepsi seems like a product one would have only when one is concerned about sugar. “That’s not the case with Pepsi Max. With Max we are injecting a lot more cola attitude and imagery that will appeal to a wider set of consumers. We are not just targeting a small number of diet cola drinkers, but those who are consuming regular drinks.” In and around Delhi, he says, for instance, the diet category is available at about 5,000 outlets, but with Pepsi Max the target is about 30,000 outlets. Arora agrees Pespi Max will cannibalise Diet Pepsi and even Pepsi’s market to an extent, but, he says, importantly, it can help the overall category grow. PepsiCo will roll out Pepsi Max in phases in different large cities — it is Delhi and the national capital region to start with.
The advertising and promotions for Pepsi Max will centre around the proposition, “Maximum kick. No sugar”, which is also the brand’s punch line. “The communication, be it on TV, print, outdoor or online, will be very ‘disruptive’, and focus on men in the 25 to 35 age group maximising every moment of their lives,” says Arora. To ensure that consumers get to sample the product, Pepsi has gone in for aggressive pricing — a 250 ml slim can is priced at Rs 15 compared to Rs 18 of Diet Pepsi, the 330ml can is priced at Rs 25 — the same as Pepsi — and the 500ml PET comes for Rs 25.
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