《The_Pepsi_Refresh_Project_-_A_Thirst_for_Change 》.pdf

9 - 512 -018 R E V : N O V E M B E R 1 4 , 2 0 1 1 M I C H A E L I . N O R T O N J I L L A V E R Y The Pepsi Refresh Project: A Thirst for Change Ana Maria “Ami” Irazabal grabbed a Pepsi from the soda fountain in the hallway as she dashed to her meeting. She needed a caffeine boost to keep with the pace of her job as the senior marketing director for Trademark Pepsi and the leader of the company’s Social Good program, the Pepsi Refresh Project. It was December 2010, and the project was finishing its first year. In 2009, Pepsi had announced that it would not run advertising for its trademark brands during the 2010 Super Bowl. Instead, the company diverted the $20 million – its typical Super Bowl budget – to support grants for a cause marketing program. The Pepsi Refresh Project allowed people to submit ideas for grants to “refresh” their communities. Grants were awarded to ideas that generated the most votes. Consumer response to the program was tremendous. More consumers submitted ideas to the Pepsi Refresh Project than auditioned for American Idol; more votes were cast for Pepsi Refresh projects than in the previous U.S. presidential election. At the same time, Pepsi sales were slumping in the U.S. – down 5% in 2010 – and PepsiCo was losing market share to its rival, Coca-Cola.1 For the first time in twenty years, Pepsi-Cola surrendered its title as the second best-selling carbonated beverage to Coke by slipping to third, behind Diet Coke.2 PepsiCo’s share price was also down 5% in 2010.3 Irazabal sat down with her brand team to plan their strategy for 2011. Two questions loomed. Should Pepsi continue to invest in the Pepsi Refresh Project? If so,