Pepsi Ads - Advantages of the Company's Online Video Marketing - Case Study Example

Report of Pepsi ad Introduction On-line video marketing is a strategy that aims to get consumers to share the message of the marketer. The message often spreads quickly and dramatically. The public often determines whether the ad is interesting enough to be aired via the internet (Pride & Ferrell, 2012, p. 479). Word of mouth is never effective no matter the product involved. Online platforms reach more people and encourage customers to purchase a product. Promotional activities help customers to make informed decisions as far as purchases are concerned. However, some groups have teamed up to criticize the activity. The main reasons for the criticisms include the fact that it is highly visible hence; it may pervade our daily lives (Pride & Ferrell, 2012, p. 481). The other reason is that promotions have flaws. There is a common criticism that promotions are unethical and deceptive. Words can have diverse meanings hence it may be deceptive for a number of users. Online marketing stimulates demand. Pepsi Company is bound to make increased sales thus reducing marketing costs, which can also reduce prices. Online marketing allows organizations to reach customers without the need for massive investment. The International Advertising Association, the Asian Federation of Advertising Associations and National Association for Advertising Standards defend a responsible communications industry and freedom of commercial speech. They make use of their global network to share information on best practices in the ever-changing business world. They also develop and provide education and professional ideas that serve the marketing industry hence promote talent. The associations came together to object negative advertisements that the Pepsi Company undertook. The company decides to change their game of advertising to video marketing. The change was seen to be negative by the associations. The company has always been at war with its rivals that is Coke and Diet coke. Video marketing has its benefits and limitations, as well. One of the ads that will be discussed here will be the “Change the game” campaign that included a change or shift from cricket to football. The campaign turns out to be an attempt to usher in western products, which resulted in the objection by the associations. The country has a collection of cricket lovers and the introduction of football will be seen as a violation of their culture. The associations think that the company has carried out negative advertisements in the manner in which they have introduced a new product. Pepsi spend millions each year in marketing campaigns. Pepsi has launched a series of change the game campaigns. The campaigns have been innovative and have received praises by the media. The rival company targets the same markets, but both approach their marketing strategies in varied and different ways. Pepsi has come up with a website with which consumers can visit and view the different products and services being offered. The sites are especially meant for the football fans. The sites are easy to navigate and use making the most appropriate. The sites make use of animations, bright and large colors that draw the attention of users. The site is geared towards those who are already consumers and are not aware of the campaigns. The site is aimed at building both new customers and reinforcing the concepts of current concepts of the firm. The internet has benefits, when used by organizations, to advertise. They are easy to use, provide a global reach for your message and provides a confirmation that the site is at the technology’s cutting edge. One of Pepsi ads has helped it change it tactic in business. The “change the game” campaign has seen Pepsi launch the first football campaign in the country. The campaign starts with an ad film that features an avid footballer and a youth icon. The icon is Ranbir Kapoor who brings alive the fun that is associated with football in the true style of Pepsi. The campaign brings alive the youthful irreverence of Pepsi where the icon is seen to be displaying his football skills. The football campaign is being launched in India that is why it is being objected. This is because Indians are lovers of cricket. Analysis of the advantages and disadvantages The campaign shows that there are many tools that can be used to promote any brand. It also shows that the many tools can be used for a new brand or product. The tools also show how efficiently the social web can be. This is because it has the ability to interweave the many channels available to benefit the advertising or marketing goals. There are marketing and advertising concepts as to why the company decided to use the internet as a media for promoting their brand. The first concept is the demographic data gathering which seeks to identify the specific consumer groups that are using their products. The websites provide ways for the company to gather demographic information. The sites enable the company to obtain information about their users. The data will help Pepsi to update their websites with information that interests their consumers. Another concept is the customer relationship management. The concept helps Pepsi to build and maintain lasting relationships with its consumers. This is done through the provision of excellent customer service. It is also done through production of high quality products that ensure the satisfaction of its consumers. The concept will not only prove to be profitable to the company but will also keep the customer base growing. Pepsi seeks to maintain high standards of customer relationship management on its websites. The campaigns usually have a provision for telephone numbers and e-mail links. Consumers will make use of the telephone numbers, and e-mail links to contact the company for any complaints or questions. By including such provisions, the company, is working towards the creation of stronger, long-lasting relationship with its consumers. This will also mean that the company will realize larger profits in the future. Another concept would be that of demand management. This is an advertising concept that will help the company to create more of a demand of their products. Pepsi allows its consumers to customize the sites once they have registered. The process allows the company to market its products to specific people thus increasing demand for the specific target groups. The sites will also consumers to download coupons for their products. Product positioning is another advertising and marketing concept. Pepsi takes advantage of this concept by working to promote the differences between their competitor products and their own. The company then works towards positioning the product on the minds of consumers as being superior therefore, worth buying. The consumers compare the products on the websites provided. They get convinced to purchase a product through the information that is more appealing and persuading. Once the consumer has chosen the product, it will mean that they will keep coming back for it. This is what we call consumer loyalty, and it would mean that the football fans would keep visiting the site for information on existing and new products. Company rivalry will be outdated, as healthy competition will be fostered. Online advertising creates awareness of an organization as well as its services and products on offer. It enables organizations to create awareness beyond what could have been achieved through traditional media. Websites can also be used to generate interest. The campaigns can be produced and aired with an inclusion of music or other attractive shows. This ensures that the targeted audience’ attention is captured and their interest held to the brand of choice. Online marketing provides in-depth information about Pepsi’s products and services. The sites provide more information than other forms of marketing. The sites also reflect the image of the company. The contents of the campaign reflect the thoughts and that which the organization represents. Creativity can be utilized to enhance the image of the company. This will lead to repeat visits and possible positioning of the product in the minds of consumers. Messages are designed to appeal to the needs and wants of the consumers of target. The internet has interactive capabilities making it possible to respond to customer demands. This means that there will be increased success in both the consumer markets and business. Online video marketing provides information in a mode that is fast and efficient. This is especially for those consumers who are too busy and do not have the time to vast information. Online campaigns provide a quick means of acquiring information. The fans can get information about the teams and icons on fast hand. There are various advantages of the online video marketing. This is especially for the campaign launched by Pepsi Company. There are however, several limitations of using online marketing as a means of promoting the product. Sometimes downloading the ads can be very annoying. It may take a long time to get the information and the possibility of consumer discontent with pop-ups, spam, pop-under and clutter. It sometimes requires that the consumers install additional software, which can be very frustrating. Consumers can also experience difficulties in navigation, which can deter visitors from coming back to the same website. Another limitation comes in the form of clutter. The Pepsi campaign could be launched at a time when other companies are launching their own campaigns. The result is some ads may go unnoticed, and consumers could also get aggravated by the confusion. There is the potentiality of deception. Some online ads do not really represent what they are in real life. Pepsi should adhere to the regulations that pertains the collection of consumer information, hacking and credit card theft. The marketing strategy should not try to invade the privacy of consumers. Pepsi should therefore, abide by the Spam Act and ensure that the campaign only provides information to a certain level. All forms of advertising should follow the codes of practice. The code of practice ensures that the advertising is truthful, not deceptive or misleading, socially responsible and complies with the law. Marketing contributes to the society, but the outcomes have been to the detriment of the society and consumers. Deterrence theory puts forward the fact that the likelihood of a future transgression occurring will be influenced by the probability of the transgression to be detected and the severity of the potential consequences (Gazley & Sinha, 2009, p. 2). It is logical to assume then that firms that are convicted as having gone against the code of practice will be less likely to commit it again. Advertising and marketing campaigns should in no way damage the reputation of another company. This is because it could have adverse effects on operations, financial condition and business. The change, the game campaign, seeks to introduce football to a country with cricket lovers. Pepsi has promised the fans a funfilled year that is both thrilling and action-filled. The company seeks to provide products that are unique and new, but that will also leave memorable experiences. Regulatory agencies should monitor the companies closely to ensure that the practices agreed are followed. This will ensure the future transgressions do not occur. Pepsi may have in the past provided a written undertaking to cease the behavior but have continued to engage in it. The results are the objections by the associations and could even lead to being taken to court (Gazley & Sinha, 2009, p. 4). If firms are closely monitored, the likelihood of transgressions will be reduced. Transgressions come in many forms such as deceptive, unfair and exploitive advertising. Such forms of transgressions will affect the way advertising will be conducted in the future. This is because companies will feel compelled to convince their consumers in a way to neutralize the transgressions. The result would be that Pepsi would have to invest more on advertisements leading to more operation costs. Advertising and marketing are synonymous. Critics have charged advertising as being provocative, biased, intrusive and offensive most times. Despite this, some consumers feel that marketing of products is a form of entertainment and a means to obtaining information. Some advertisements involve outright transgressions of the laid down laws such as deceptive advertising that contain intentional errors. Some however, controversially involve those practices that are legal, but would still raise moral questions. For example, taking Santa to advertise Pepsi in the name of being on vacation, is a controversial issue. It is also provocative to the other competitor company, and they have the right to take Pepsi to court. The involvement of many parties in the creation of ads has also raised concerns. The parties include the media, ad agency and sponsors. The inclusion lowers the ethical standards in the practice of advertising. This is because in the case that a transgression occurs no one has full responsibility making it difficult to correct the injustice. Conclusion It is clear that the Pepsi Company has perfected the use of internet as an advertising and marketing tool. The organization has been innovative and has shown to be an example to other companies. The way the organization has used the demographic data and customer relationship management have put them beyond the reach of most companies. The internet offers many advantages but also has its share of challenges. The company has, however, faced challenges one being the objection by the three associations. The objection being that of negative advertisements and failure to provide a cease and or desist notice. Video marketing is beneficial, but Pepsi should follow the marketing standards so that it can avoid incidences of objections and negative publicity. Pepsi should introduce and make use of a compliance programme. The programme will enable them develop a culture, and this could help them avoid such incidences. Marketing ethics should be maintained at all times and put at the centre of a company’s purpose. This is despite the fact that ethical operations are costly and could affect the profitability of a company. References Lists Gazley, A & Sinha, A 2009, Marketing transgressions of the Trade Practices Act: A Hazard model analysis, http://www.duplication.net.au/ANZMAC09/papers/ANZMAC2009-395.pdf. Pride, W & Ferrell, O 2012, Foundations of marketing, New York: Cengage Learning. Read More