Pepsi Latte Essay

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MGMG 508 Reflective Essay Pepsi Latte – Product failure Every day, there are many new products launched into the market. They are also brand new brand from new manufacturers and new products from existing manufacturers. “Brand line extension” is the using an established product’s brand name to launch a new, slightly different item in the same product category. Example of brand line extensions are new flavors, package sizes, nutritional content or products containing special additives. Group 3 presented about the failure (or poor performance) of Sunlight Strawberry, explaining that perhaps consumers do not find strawberry a particularly appealing link to cleaning benefits, compared to lemon or citrus fruits. I would like to raise a contrasting case by talking about Pepsi Latte, which launched in Thailand and eventually failed. Pepsi is the big name of soft drink around the world. It competes with Coke by tit for tat. The original flavor of Pepsi and Coke is well known by customers and they are fight very aggressive to be winner. Differential and creative strategy is a tool that Pepsi use to gain more market share. New Pepsi flavors are always introduced into the market. On December 2005, Pepsi Thai launched “Pepsi Latte” to the Thai customers. Its flavor is the combination of original Pepsi and latte coffee.

Pepsi latte is focusing to the customers aged above 18 years who are currently be Pepsi customers and new switching customers who currently drink latte coffee and try to use to increase the total market share of Pepsi Brand. Pepsi latte is promoting by the slogan “When Pepsi meets coffee” and “Modern lifestyle”. Pepsi show the research that 73% of customers who have ever tried

this flavor will repurchase it. 1 But the result didn’t be seemed like its research. Pepsi latte was in the market for short period and it had already gone from the shelves. What be happened with it? First, the position of the product isn’t clear enough. Its position is between...
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