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 MARKETING STRATEGIES
Lemon charged Pepsi sours Coke’s day
Rosemary Ryan


PEPSI has scored a marketing coup in the battle of the lemon in Australia by getting its new Pepsi Twist product in consumers’ hands ahead of Coca-Cola’s planned launch of its own lemon-flavoured cola product.

Last month Coke announced plans to have its Diet Coke with Lemon product on Australian supermarket shelves from June, a blow to Pepsi, whose plans to launch into the Australian market before Coke had been hampered by production hurdles.

But in an aggressive strategy deliberately aimed at pre-empting Coke’s entry, Pepsico Australia this week launched a major “coming soon” public relations campaign and sampling promotion to raise awareness of its product ahead of its roll-out in KFC stores from June 1, and then in supermarkets and in the route trade from July 1.

The PR campaign involved eskies of cold Lemon Twist-imported from Singapore-being distributed to the media to announce a promotion that will run over the next month offering a $20,000 cash prize for people who “find” a bottle of Pepsi Twist and register their bar code.

This week’s activity was supported with a 15-second teaser television commercial.

It will be followed up with the launch of a series of three more 15-second ads built around the promotion.

The marketing activity also includes a sponsorship deal with the Ten Network’s Big Brother show. In the live broadcast eviction program next Sunday night, the 1800-strong audience will all receive a sample can.

The next day Pepsi Twist vans will be on metropolitan streets nationally waiting for people to spot them and ask for some of the product.

In the US, Pepsi Twist has been credited with delivering a 7% lift in volume sales of Pepsi’s trademark products.

The product was originally launched as a short-term promotional product but had been so successful for Pepsi that the soft drink maker decided to make it a permanent addition to the Pepsi portfolio.

Coke’s confirmation that it was launching Diet Coke with Lemon came four months after Diet Coke with Lemon was launched by the soft drink giant in the United States, where Pepsi has had major success with its Pepsi Twist product, which has been on the market for more than a year.

Coca-Cola Australia’s corporate affairs manager Fiona Hamann would not comment on Pepsi’s guerilla tactics.

She said the launch of its lemon charged product would go ahead as planned but would not reveal any details about marketing plans.

“It’s all in the pipeline, ” Hamann said.

17 May 2002

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