Pepsi Sales Bubble with Limited Edition Soft Drinks

Week 5 Case Assignment MRKT 5000 PepsiCo Pepsi gross sales Bubble with Limited-Edition Soft Drinks Case Summary Pepsi and their partner, Suntory, are using limited-edition around the bend drinks to boost market share in the $30 billion Nipponese beverage market and keep sales bubbling despite a cola war with Coca-Cola and fierce competition for space on store shelves. No naked overlap is a sure thing, but the Japanese market is particularly challenging.Of the 1,500 beverages launched there every year, only the tiniest percentage survives the previous period because the Japanese convenient stores are small and they make manner for only the products that will sell off the shelves quickly. Another reason is because the Japanese consumers crave novelty limited-editions products that are for specific seasons, regions, or reasons. Given, the competitive environment, the squash from retailers to make spick-and-span products perform, the speed with which consumer tastes change, and the cost of launching a clean loco drink, Pepsi and Suntory are being careful not to overuse their limited-edition strategy.Key trade Issues Line extension Development of a product that is novelty, but near related to their existing product line to tack different node needs, to reach different target markets. Aesthetic modification Changes to the sensory appealingness of a product. Pepsi changed with berry-flavored Pepsi Blue and trumpery Cucumber. Product differentiation Creating and designing products so that customers perceive them as different from competing products.Pepsi differentiated itself by being fling the Ice Cucumber only during the summer and by limiting the Pepsi Blue. in the flesh(predicate) Case Analysis Case Questions 1. Pepsi and Suntory cap their limited-edition soft drink introductions at four per year. What effect is this cap likely to have on the new product development process? By Pepsi and Suntory offering their limited-edition drink introductio ns at a cap of four per year it will have their consumers excited anticipating the next introduction, versus offering them more a year and their consumers get bored quickly.What we have to remember is that the Japanese market does not respond the same way as the U. S does. The Japanese market, wants novelty and limited-edition and thats what Pepsi and Suntory is going to give them. When Pepsi and Suntory set out to tap this widespread interest group in variety by marketing limited-edition soft drinks, they started with berry-flavored Pepsi Blue. In the joined States the Pepsi Blue remained on the market for two years. In Japan, the entire takings sold out the same product within a some weeks.Its a great marketing plan to allow their limited-edition soft drinks stand out and not overuse their limited-edition strategy. 2. How important is product character reference when a limited edition soft drink like Ice Cucumber sells out in a matter of weeks? Product shade is important, b ut not as important as ensuring that the product meet the needs of the consumers. Consumer needs are most important. Consumers spread the news by use of technology and word of mouth, which is significant for any successful marketing strategy.Another thing thats important is the scarcity and seasonality, as mentioned in the casebook these two added to the appeal of high demand. 3. What criteria would you suggest that Pepsi and Suntory use when natural covering ideas for new limited-edition soft drinks? The most important criteria I suggest that Pepsi and Suntory use when screening new ideas for new limited-edition soft drinks is making sure they match product offerings to customers needs, make sure they have effective and lucid branding, good timing is necessary, effective promotions, and sufficient distribution.I would use the previous technique they used before by taste testing many possibilities, then(prenominal) choosing a flavor, creating samples and waiting for responses b y focus groups. This will give consumers something to understand forward to every season. Recommendations Works Cited Pride, W. and Ferrell, O. , Marketing, 16th ed. Copyright 2012, Cengage Learning