Pepsi launched ‘Pepsi Max’ with confused strategy

The ‘Pepsi Max’ launch looked like a hit and trial strategy for company. The Pepsi vanilla flavor launch in India was a huge flop. 

In a bid to go beyond ‘Youngistan’ and attract older consumers, soft drink major Pepsico India today introduced its global sugar-free cola brand, ‘Pepsi Max’ in India.  

The new ‘Pepsi Max’ will be in available in markets in addition to the existing ‘Diet Pepsi’, which is marketed as a low calorie cola drink. 

“It is a strategic introduction. We are providing more options in the diet cola category. While Diet Pepsi is for the youth, with the new product (Pepsi Max), we are targeting young adults aged 25 years old to 35 years old,” PepsiCo India Executive Director (Marketing) Punita Lal said. 

Pepsi India for sure has no clarity on future of both and Marketing Executive Directors answers were stamp on hit and trial strategy. Asked if Diet Pepsi will be discontinued with the launch of the new product, she said: “We will wait and watch. It (Pepsi Max) will definitely cannibalize Diet Pepsi.”

She, however, said Diet Pepsi will continue to be in the market. “But we don’t know. Whichever does well, we will sell that. If both work, we will keep both,” she added.

The Indian cola market is estimated to be around Rs 10,000 crore. Pepsico has been targeting the youth through its products, including 7UP, Pepsi, Mirinda and Nimbooz, under the ‘Youngistan’ campaign, which features Bollywood stars Ranbir Kapoor and Indian cricket team captain M S Dhoni.  

History of Pepsi Max: 

Pepsi Max debuted in the United Kingdom and Italy in April 1993. The rollout was expanded to Ireland the following September, and to France, the Netherlands and Australia the following December. By the end of 1994, Pepsi Max was sold in approximately twenty countries. 

The product remained unavailable in the United States until only recently (the U.S. is PepsiCo’s native market, and the largest consumer of carbonated soft drinks), where one of its principal ingredients had not yet been approved by the Food and Drug Administration. The ingredient in question—acesulfame potassium—is combined with aspartame to provide the beverage’s sweetness, whereas some other diet colas are sweetened by aspartame alone. 

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