SEPTEMBER 6, 2011
THALES S. TEIXEIRA ALISON CAVERLY
In September 2010, Mary Barnard and Marisol Tamaro returned to their offices at Pepsi Headquarters after a meeting with their new advertising agency, Mekanism. One month ago, Mekanism had been hired to work on the re-launch of Brisk Iced Tea, a brand that had had its glory days in the ‘90’s and then later had become stagnant. As of 2009, Brisk had a 10% market share in the fast growing ready-to-drink tea category, despite having virtually no advertising support. Mekanism presented four concepts created for a television commercial, one of which had to be chosen to be produced for the 2011 Super Bowl. But ...view middle of the document...
Yet, PepsiCo executives had given a Super Bowl spot to Brisk, over bigger brands such as Lay’s and Mountain Dew, because the company believed in the brand and in iced tea. It was the only major category where neither Pepsi nor its rival, Coca-Cola, had the top market share position. Needless to say, all eyes at PepsiCo were on Barnard and Tamaro. Barnard and Tamaro would need to decide on the most important elements of their re-launching strategy for Brisk: which concept to produce and, apart from the Super Bowl, which media to distribute the new ads. Should they take Mekanism’s suggestion to go for a “viral advertising” campaign? Or should they use the traditional approach, buy prime-time television media to show ads to a large and guaranteed audience size? The budget was limited, allowing for only three different executions to be produced based on the same concept, for consistency. It also didn’t allow for running a viral campaign, as well as purchasing a sizable amount of TV air time.
Professor Thales Teixeira and Research Associate Alison Caverly prepared this case. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Copyright © 2011 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to www.hbsp.harvard.edu/educators. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School.
Pepsi –Lipton Brisk
Pepsi + Lipton Partnership
In 1991, Unilever’s Thomas J. Lipton Company and PepsiCo formed a 50-50 joint-venture called the Pepsi Lipton Tea Partnership (PLP), for marketing and distributing ready-to-drink teas in North America. The partnership was extended twice, in 2003 and 2007, to include additional international markets under Pepsi Lipton International. The collaboration allowed Lipton to take advantage of PepsiCo’s strong presence in markets across the world and its well-developed bottling and distribution networks. In return, PepsiCo benefited from Lipton’s reputation as a health-conscious brand and was able to add tea to its beverage offerings to compete in the beverage market without making unnecessary investments in research and development. PLP’s tea brands included Lipton, the core brand, Lipton PureLeaf, and Lipton Brisk. From June 2009 to May 2010, these top three brands had $ 746 million in sales and an estimated $340 million in net revenues.
The Brisk Brand
Lipton Brisk Iced Tea, a ready-to-drink cold tea beverage, was launched in the mid-1990s by PLP. As of January 2010, the drink came in six flavors—Lemon, Tea+Lemonade,...