Pepsi Company On-Line Video Marketing Strategy - Essay Example

Pepsi Company On-Line Video Table of Contents Introduction 2 Analysis of Prior Research 4 Impacts of Video Marketing 6 Positive Impacts of the Advertising Campaign 6 Negative Impacts of Advertising Campaign 7 Recommendations 10 Conclusions 11 Introduction PepsiCo, which is a multinational company producing food products and online services such as video games, has adopted online video marketing. Established in 1902, PepsiCo is an American worldwide corporation. PepsiCo has its major operations dealing with producing, marketing and distributing majorly online services, snacks and beverages. The company through online marketing will enable it reach high customer base hence high volume of sales. The company’s main target is the youth and children since they believe this population will provide ready market for its diverse online services and products in the market (Cook & Finlayson 2005, P.15). On-line video marketing strategy has emerged to be a powerful worldwide digital marketing system, which is tailored to deliver customized interactive commercial advertising. Therefore, digital marketing has emerged to be one of the current primary features of the present internet era. Marketers and advertisers across the globe are cooperating to perfect the so-called “media marketing inclusive environment. Utilizing the interactive abilities of social networks, video games, broadband video channels, and viral worlds, advertisers and marketers, are astonishingly, aiming much of their concentration on adolescents, and children as their target customers. As with most new online technologies, fears of games’ health and social effects have followed. These fears have increased alongside the rise of the online internet era and its individual equivalent to set of issues surrounding internet marketing. Internet games played through online video games, then, have been specifically worrying source for several, with media, pundits, parents, and politicians outlets aiming on potential relation between online real-world aggression and game violence .The shocking occurrence at Columbine High School in Littleton, Colorado, acted as a eye-opener for these online issues, with proponents proposing that online games played an important role in the misfortune. The negative impacts of PepsiCo advertisement campaigns have revealed series of lawful challenges concerning video marketing and sale of games to youths and children (Mani and Rajagopalan 2003, P.304). However, the online video marketing by PepsiCo has generated a lot of controversies on the impacts of their advertisement campaign on health and behavior of children and adolescents. This is because youth and children are the most affected population by company’s online video marketing strategy. The proponents of the campaign branded as “Pepsi Change the Game” view it has being a milestone approach in addressing marketing challenges posed by other marketing approaches. The proponents argue that, the marketing strategy aims at meeting the needs of the young generation video games. On other hand, opponents of the campaign view the marketing approach by the PepsiCo as negatively influencing the behavior and health of the youth and children in the current marketing environment. Organizations such as International Advertising Association (IAA), National Associations for Advertising Standards and Asian Federation of Advertising Association (AFAA) strongly protested against the campaign. The associations has laid down strategies that will make the company stop the video marketing approach through popular web sites such as You Tube and Google (Trusov &Randolph 2009, p.95). Consequently, PepsiCo campaign doesn’t meet threshold of community standards since it goes against aspirations of the community. The community principles and values require that the company through its advertisement promote values and ethics among its members, but the company has fallen short of these standards (Cook & Finlayson 2005, P.16). Analysis of Prior Research The prior research into issue of impacts of online video marketing such as video games has resulted to aggression and violence among the youth, children, and other members of the society. Therefore, this has caused controversy in the internet marketing industry since the PepsiCo advertisement campaign has sparked unrelenting debate on negative effects of such advertisements on the behavior and health of target groups. Research has established that there is significant link between online video marketing and real-world aggression. Most of research literature has indicated that PepsiCo campaign has a lot of shortcomings and influences on youth and children who depend on internet for video games. Therefore, exposure of youth and children to video games is substantially associated with aggression, however, the research results found that the video games are influencing the youth and children to adapt to negative behaviors such as violence and real-aggression. In conclusion, researchers believe that there is a strong connection between aggression and video games, nevertheless, with the exemption of comparatively short-term impacts on youth and children; they have yet to demonstrate this relation categorically (Trusov &Randolph 2009, p.96). The results of most of the research support the argument of researchers who propose that some violent games essentially result to increased aggression among youth and children. The increased levels of concern following in the wake of the PepsiCo campaign on video marketing might be more epiphenomenally than internationally reasonable level. However, since the campaign strategy targets solely on younger teenagers, we can say that youths and children encounter the same effects. Therefore, this means the campaign targets both the youth and children thus influencing them to adopt violent behaviors thus they can easily violates the norms in the society (Mani and Rajagopalan 2003, P.304). It can be argued that there is not as much concern necessary for this kind of video marketing amongst young adults or adult population. The cultivation on results proposes that the video games world does in the real sense have an influence on players’ views of real world. We find substantial evidence for these both with the crime probability and safety findings, and also with the verbal violence. The regular, socially positive verbal traffic prevalent to online video games might have transformed into a more positive perspective of conversation in real life. It is evident that aggression effects may in fact be measuring awakening, indicated that the early impacts wear out after a short period of time. What occurs when players take part in video game aggression for longer than one or two hours? Long-term exposure to video games by youths and children means that they will be more violent as compared to those exposed to short-term video games. This shows that the PepsiCo campaign on online video marketing has significant negative effects on the behavior of the participants on the internet tool (Cook & Finlayson 2005, P.21). There is evidence for possible growing impact of experience to violent and aggression to online video games over numerous months or years. This may be particularly significant given the number of observed trends regarding ever more violent nature of online video games played by present world youth and children. Thus, it is fundamental to scrutinize whether children and youth who are presently playing online video games will grow up to be more violent adults. Therefore, PepsiCo advertisement campaign will have more harm on its online clients especially the youth and children. This negative effects contributed by advertisements, has attracted many critics, which include major associations and other rival companies such as dealing with online distribution services and products (Mani and Rajagopalan 2003, P.305). Impacts of Video Marketing Positive Impacts of the Advertising Campaign Online relationship marketing needs promotion of the processes and procedures of relation, communication, dialogue and value. Emerging online video marketing tool for PepsiCo, has greatly promoted company’s online objectives, which in the long-run will boost its sales in the internet era. The online video tools for marketing comprise of webinars, real-time and video training, which can offer company with applications, which are more constant with social nature of the selling association by opening the relationship to a discussion. Online marketing technologies also allow the company to customize their messages and have conversation with clients hence meeting the demands of the customers adequately (Cook & Finlayson 2005, P.20). Furthermore, technological fundamentals of online marketing through online video games, frequently permits excellent services targeting of possible clients as the databases driving sites such as Facebook, Yahoo, Google and Twitter are capable to fragment audiences by employing social variables such as interests and demographics, and still to plan the coming out of online communities as targets who happens to be children and youth. This means that, the company is utilizing search engines and social media to promote its campaign which targets the young populations who are vulnerable to online video games. Nevertheless, the achievement of this online marketing campaign is dependent on significant resources being allotted to their appropriate application and assessment (Mani and Rajagopalan 2003, P.306). There are extensive and fashionable expectations that video marketing applications can lead to extremely effective online marketing. PepsiCo has significantly benefited from the online marketing strategy since it the time it was launched. The company has been able to post more sales through online video marketing tool because of the large customer base attracted by online video games. The company has been able to increase its customer’s base significantly (Trusov &Randolph 2009, p.98). This is because; the online tool has attracted youth and children who constitute majority of the population worldwide. The online video games has enabled PepsiCo compete effectively with other rival companies such as Coca Cola thus implying that this has given the company competitive advantage over its rival firms. Certainly, video marketing greatly impacts promises some type of marketing communications transformation: for instance, worldwide PepsiCo will not be advertising through the Super Bowl, and in its place pick online social media campaign they say will “assist their clients better recognize what Pepsi stands for” (Cook & Finlayson 2005, P.20). Negative Impacts of Advertising Campaign Online video marketing approach by PepsiCo has more negative effects than positive effects on youth and children. PepsiCo is well aware that the advertising strategy has many negative impacts on users especially the youth and children. However, the company has become reluctant on the controversial debate since they are aiming at making more profits therefore, boosting profitability of the company. There has been outstandingly little significant analysis of the new digital advertising scheme and its impacts to the public. However, children and youth have be branded as digital ‘guinea pigs,’ where a range of marketing methods finely tailored to control identity, emotion, and behavior, are being disseminated without a systematic understanding of the outcome. Decisively structured ‘immersive’ and ‘virtual’ environments that enhance relationships with brands have been created; technologies that strongly investigates individual’s online network of friends to assist activate a ‘viral’ marketing reaction have been disseminated (Allwood 2002, p.20). Therefore, PepsiCo through its campaign, are employing far-reaching and encompassing marketing strategies that aims at engaging the youth and children, which include in-game advertising, mobile marketing, video marketing, behavioral targeting ,user generated adverts ,viral videos ,and immersive “brand c concentrated environment(Mani and Rajagopalan 2003, P.305). PepsiCo is currently working with advertising agencies, research, technology, and media firms to clearly comprehend how to efficiently and effectively target youth and children in this new environment, food marketers are main a part of a well-financed digital marketing research infrastructure system for the company. Whilst marketers have long examined children and youth, over the last many years they have promoted their research strategies. The principal brands and advertising institutes have been apprehensive that unless they fully comprehend the needs, interests and motivations of current digital-savvy global youth, they will largely risk losing their capability to create an impact and sales on the target population. Therefore, PepsiCo have carried out research efforts that study how youth and children use technology, communicate online, and perceive adverts. The PepsiCo strategy aims at influencing target groups on adopting their online video marketing initiatives thus increasing their sales. The adverts in turn negatively influence both the behavior and behavior of the youth and children (Cook & Finlayson 2005, P.22). The digital marketing model by PepsiCo has had tremendous effect on target population. Short online videos are gradually becoming popular method of promoting brands by PepsiCo amongst youth and children, who consume these “fast snacks of media” and forward the links along to their companions via text messaging, IM, and blogs.183 .With the expansion of broadband, streaming online video has become persistent all over the Internet, migrating to cell phones media as well. YouTube, which is a free video sharing service that allows users to post their individual videos and download many others, has experienced the type of dramatic increase that has emerged to be the stuff of myth in the internet age. In a period, less than two years since it was established, YouTube had emerged to be the fifth-most-famous and visited website globally, with approximately100 million clips accessed and viewed, and an extra 65,000 new videos downloaded in every 24 hours. Attracting an enthusiastic subsequent 12-to-17-year-olds, the popular site rapidly became such a hot market property that Google Inc. paid $1.65 billion in stock to buy it in October 2006. Through these social networks the campaign has negatively influenced the youth (Mani and Rajagopalan 2003, P.306). The uploaded online videos have negatively influenced the youth and children on turning into violent behaviors as a result of watching the violent sites from sites such as You tube. Consequently, this alarming change in behavior of the youth and children has promoted governments and organizations to undertake strategies that will stop PepsiCo from continuing with the campaign since it has negatively. Recommendations Given worldwide impacts of the PepsiCo campaign, there need for the company to devise alternative online games that will have minimal influence on the young generation. There should be significant strategies and policies that will govern video marketing thus enabling the company to attain its objectives and at the same time, positively impact youths and children (Cook & Finlayson 2005, P.22). This will enable them grow up responsibly and adopt good behaviors that are less violent. The following are recommendations that PepsiCo should adopt in using online video: 1. PepsiCo should ensure that the use of online video tool among youth and children is secured. This is best done through establishing considerable privacy policies .The current online world has many users, thus need for the company to comprehend the behavior of each client via online tracking and profiling. This will definitely offer significant detailed support on the advertisement campaign thus allowing the company has control of the online distribution service. Therefore, through profiling and tracking strategies, the firm will be able to reduce a number of online abusers taking advantage of the online tool (Allwood 2002, p.23). 2. The company must revise its privacy policies so that there is no data collected from youth and children without approval from the government. These include government interventions by creating and enforcing rules that will ban children and under the age of 18 years from accessing online video games. The government through relevant agencies and privacy bodies, which include Federal Trade Commission should ensure that the privacy rules are in place and operational thus protecting both youths and children against internet abuse. Privacy rules will allow the company to report and file any case of abuse thus protecting business integrity and reputation globally and in addition protect children from abusing the online tool. There is also need to ban behavioral online services ands products directed towards children under the age of 14 years (Mani and Rajagopalan 2003, P.305). 3. PepsiCo should undertake substantial research and development (R&D) on effects of video marketing, particularly negative effects of online video games on youth and children. The R&D will enable the company develop and execute sound policies that will safeguard both the image of the company and strategies to safely meet its objectives during this internet era. The R&D will allow the company develops strategies that will monitor the use of online video games by youth and children whose behaviors are easily damaged. This will aloe the company makes sound decisions on then use of the video marketing strategy (Allwood 2002, p.23). 4. The parents should have a leading role in ensuring that their children and youth don’t access those online sites, which are behavioral targeting and damages their behavior. This is because parents are close to their children and can monitor any online activities easily and have direct control. The parents should ensure that their children only access educative sites. This will ensure that children don’t abuse the sites hence changing their behaviors negatively (Mani and Rajagopalan 2003, P.308). Conclusions PepsiCo which is multinational company established in 1902 majors in producing food products and other online services such as video games has adopted online video marketing. The company through its online services has greatly ventured in video marketing, which is a popular marketing tool for most of its operations. The PepsiCo campaign targets both children and youth. The company has sparked global debate on issues related to impact of online video games and marketing. The company through famous campaign “Pepsi Change the Game" has attracted both critics and proponents of the campaign. The critics of the company’s campaign argue that the strategy has negatively influenced youth and children. They argue that, online video games have changed both behavior and health issues of the target groups. Therefore, this has attracted agencies and associations such as International Advertising Association (IAA), National Associations for Advertising Standards and Asian Federation of Advertising Association (AFAA), have come out fiercely to criticize the campaign. On the other hand, proponents of the campaign have praised the campaign as it worth to both to company and the public (Cook & Finlayson 2005, P.25). However, following the analysis and results of the research, PepsiCo campaign has negative influence on both youth and children whom the campaign targets. This means that negative impacts are more than positive impacts making the campaign a failure. The uploaded online videos have negatively influenced the youth and children on turning into violent behaviors as a result of watching violent sites from sites such as You tube (Mani and Rajagopalan 2003, P.308). Consequently, this alarming change in behavior of the youth and children has prompted governments and organizations to undertake strategies that will stop PepsiCo from continuing with the campaign since it has negatively. Therefore, this implies that campaign influences the youth and children negatively thus making them adopt worst and retrogressive behaviors that will make them become outcasts of the society. PepsiCo is well aware of negative effects of the campaign, but they have kept numb on this sensitive issue. This is because the company’s objective is to make more sales, which translates to more profit hence productivity of the company. Therefore, the negative advertisement by the company is ruining young lives thus need for the government to intervene the situation before it worsens. The campaign, therefore, undermines the community expectations and standards that require that the advertisement should promote the well-being and values of members of the society. However, PepsiCo campaign has greatly influenced youth and children negatively thus falling short of community principles and values that befits such as company (Cook & Finlayson 2005, P.26). References Allwood, J., 2002, Bodily communication dimensions of expression and content. “Multimodality in Language and Speech Systems”, pp. 7-26. Basaran B., 2002,” Is Masculinity Really An Exceptional Condition in Turkey?” [Internet] Available from [Accessed 30 August, 2012]. 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