Will You Rebrand during Economic Downturn?
On October 20, 2008, Pepsi finally revealed their new face. They spent $1.2 Billion in their entire new packaging, merchandising, and communications. Is it the right time to rebrand?
The New Pepsi Identity
From the consistent red and blue swoosh and now transformed into a friendly white smile I do believe they are trying to capture the unconventional younger audience compared to its rival the Monolithic Coca Cola Logo.
The symbol is adaptable to its offering (pepsi max- wider white space to diet pepsi – thin space), unlike the conventional branding rule: never touch the symbol and the signature!
Test against Time
Strong brands will not only survive against tough times, but also able to maintain with its customers and gain more market shares during the downturm as well.
Rebranding for Pepsi for some users maybe to extreme and to many Pepsi loyalist, these will be a positive move. According to the adage: Ms. Nooyi said during a call with investors last week. “It is our belief that, especially in this economic downturn, we should be investing in the category to get consumers to stay with and some to return to the packaged-liquid-refreshment beverage category and to our brands in particular.” The funding will come from Pepsi’s “Productivity for Growth” program, which involves cutting 3,300 positions, as well as closing of six plants.
The customer behavior is changing in matter of weeks.
Economy downturns will drive the consumer to rethink and reprioritize their purchase. Consumer credits are now increasing for more than 2%, credit crunch in business loan, dollars increases more than 20% in matter of days….Consumers are forced to spend and behave differently for upcoming years. They are spending much less in luxury goods, and much more focus on day-to-day necessities.
Pepsi maybe the extreme example on major rebranding, however there are many FMCG companies out there are also force to rethink their new strategy in approaching and communicating their customers and potential market. This is the most crucial time to stay innovative and relevant to customers.
Harsono Susilo, CEO of Bedrock Asia, is a keynote speaker and practitioner with 15 years’ experience in brand management and consultancy, in the U.S. and Indonesia. He can be contacted at inquiryasia@bedrockbrands.com
The images are copyrighted and owned by the respective online publishers: thedieline.com and adage.com.
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