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Significance Of SOCIAL WEBSITES Of Pepsi Marketing Essay

Marketing is definitely an effort for organizations since making the business, brand or product appealing to the customer with the purpose of increasing sales amount. Companies therefore tend to come up with innovative marketing strategies to gain customer's attention. Traditional marketing methods such as TVCs, printed out advertisements, telemarketing etc. have lost their charm scheduled to bombardment of same exact marketing techniques. Customers are actually fed up of promotional activities and tend to get annoyed due to high marketing. Moreover customers are so much aware and proficient now a day thanks to internet that they themselves pick out what marketing activities they have to see and what things to block out. Moreover social networking communities on the internet have created the movement of information more dense and fast since positive peer reviews, marketing blogs and variety of "Likes" over a company's site now make up the customer collateral of a company. That is why more companies are moving towards social media as it is a fairly inexpensive and easy way to reach a large audience with similar style. We are able to say that the proverb "Birds of the same feather flock together" is the basis of notion for increasing affinity for social media. The major reason is the fact social networking websites have communities where people dedicated to a particular brand or users of something or any specific style or activity have a tendency to become involved and interact. This conversation and engagement is what we call as Resonance in the brand resonance model which is the very best most level of brand development (Kevin Street Keller, 2001). Increasingly more companies are actually adopting this strategy to directly talk to the targeted customers while providing them with just what they want. Such marketing strategies also improve the chances of positive word-of-mouth marketing which is the most influencing marketing strategy we know till now. This report will further regulate how different companies execute this online marketing strategy along with the negative and positive aspects associated with this plan.

Pepsi Refresh Project

Pepsi is one of the world's major companies and a innovator in the drink market with a hardcore competition from Coca Cola. Actually we may also declare that both these companies have a tendency to form a kind of Oligopolistic competition on the market and enjoy large market shares by strategically dividing the world's region among them. Pepsi is well known for ground breaking TVCs and have a tendency to spend plenty of capital in this online marketing strategy. This year 2010 however marketers at Pepsi acquired the idea of utilizing the social media technique for improving the brand equity. They played an enormous gamble by trading their Super dish opening ad position with a public campaign well worth $20 million. This is a huge risk for Pepsi given that they initially did not have a large following on social networking websites like Twitter and facebook in contrast with more than 4 million facebook supporters of Coke (Digital Excitement Blog, 2010). However Pepsi launched this advertising campaign in which grants were to be produced to an innovative idea which influences the city or environment and gets the best quantity of votes on networks namely Twitter and facebook. Pepsi very oddly enough mixed two marketing techniques in their strategy one was using communal mass media and the other one was marketing for public good. Thus Pepsi was actually considering shared benefits and increasing free publicity because of this strategy. This system turned out a great success for the company because the mere number of visitors on their website increased by 800% (Moir, 2010) and their pursuing on Twitter and facebook increased significantly too. Other companies say their success and attempted to imitate as well since the successful execution of the viral marketing strategy was as living proof that social mass media is the future of marketing.

Significance of Friendly Media

As stated previously and in a number of other sections of this report public media is gathering popularity daily. According to figures facebook has more than 800 million effective users and 100 million energetic users of Twitter and growing. Thus we can see that these social networking websites are themselves a huge ground to advertise the company and create understanding with increased reputation and recall strategies. It is not only the mere amount of consumer but there are other features which allow the companies to interact with the clients in a fairly innovative manner. For instance companies can post their pictures, activities, information regarding products and about the business. Moreover the greater significant facet of social media gets live on location feedback from the customers. Companies may also evaluate their brand collateral and build it through interpersonal media since it allows customers to engage with the company and other customers. Before the emergence of social marketing concept of areas and brand engagement was not so popular so we can say that this marketing channel has a great impact on marketing strategies of today as well as tomorrow.

Advantages and Drawbacks of SOCIAL MEDIA MARKETING Marketing

Even though social media has gained level of popularity and companies claim that it has a significant affect on the revenue of any company the relevance of amount of followers on a public networking website with the actual sales is debatable as stated earlier. There are a number of advantages and disadvantages associated with this strategy. We will first look as the advantages

Inexpensive online marketing strategy as compared to traditional techniques

Direct communication channel with the customers

Innovative marketing techniques allows writing the experience and organizations of consumers

Ability to reach a huge audience without any geographical boundary with no additional cost

Encourages customers to activate with the brand community and some other clients such creating brand resonance

Even with each one of these advantages on hand there are a few down sides associated with this marketing technique such as insufficient expertise required to handle social media (Sandilands, n. d. ). If not performed properly this means updating statuses and posts on at least daily basis then this plan can only just become yet another cost for the company without the positive impact on the revenue. Additionally since social marketing is dependant on freedom of speech just about anyone can say anything therefore any negative commentary might also result in negative feelings over a large scale just like positive feedback do. Just as as positive viral marketing is healthy negative viral marketing with a competition or any regular person may prove to be detrimental for the company.

Impact of Social Media Marketing on Pepsi

Pepsi gained huge benefit from implementation of the viral online marketing strategy. However we might say that the relationship between the acceptance of a social media marketing strategy with the real increase in revenue is still a subject to be debated yet companies find a significant increase in their brand equity after successful implementation of social media techniques such as Pepsi does. As a facts we can see that the amount of supporters of Pepsi's facebook webpage in 2010 2010 was around 25, 000 however as of today the number has leaped to more than 9 million supporters. This is regarded as a huge success (even though it is still far behind Coca Cola with 55 million+ enthusiasts) since additionally it is a fact that only those companies enjoy a sizable following who have higher customer commitment which is indirectly judged by the will to activate with the brand. The business tends to promote their brand by publishing videos, pictures and improvements regarding events sorted out by Pepsi. They encourage customers to upload their own photographs regarding experience with the merchandise and ask random questions like "Who hides their Pepsi in the fridge" to connect and relate in a fairly informal way with the clients. The company also boasts about the number of Tweets it gets each and every minute regarding a certain project. This plan has proved to be quite good for the business since more folks following the site means more folks talking about the merchandise and more folks talking about this means higher proposal with the brand which indirectly increases the revenues of the business. THE PRINCIPLE Consumer Engagement Officer at Pepsi, Frank Cooper, state governments that at Pepsi they believe that social connections are a foundation for the effectiveness of their marketing plan the customers tend to communicate with real life social networks about why they love the product and this word-of-mouth marketing affects revenue and earnings (Silverstein, 2010).

Social Press Marketing in Other Businesses

As areas above social media marketing and online presence has become a norm in the business sector. The primary reason behind it is the growing amount of internet users. People have a tendency to "Yahoo" products they need and read their specifications and reviews online before making a purchase. Therefore every other firm is adopting social media strategy and integrating it as a formal online marketing strategy in their business strategies. We will discuss two other business that happen to be applying this marketing approach and enjoying its profit.


Samsung has its own site on facebook called "Samsung Mobiles USA" it is one of the number of pages from the company. The webpage presently has more than 21 million users pursuing it which makes this page a huge success. The customers interact with other users of the product, share their activities, give reviews and even take part in contests established by the company. The business also uses this site to market the latest produces and informing customers about approaching products. For example the recent post of Samsung Mobile USA's page is approximately the innovative top features of Galaxy Take note of II which has around 40, 000 "Likes". By examining the info we can conclude that Samsung also rests together with the Brand Resonance Model and relishes great customer engagement thus strengthening its brand equity.


Another example is of luxury automobiles making company Lamborghini which has formal community on facebook and Twitter. The company has around 5 million supporters on facebook alone which makes a huge supporter following since the corporation tends to target a niche market. The company uses these cultural media channels to promote their vehicles along with additional products such as Lamborghini Original Accessories which fans of this brand can purchase even. The company also uploads videos regarding sneak peeks into the luxury automobiles and other specs which can interest the client.

We can easily see that companies coping in any business sector from drinks to automobiles to automobiles have a tendency to utilize social mass media to talk to the most precious asset of any company "Customers".

Impact of SOCIAL WEBSITES Over the Next Decade

A major impact of SOCIAL WEBSITES over another decade as stated by Asur, S. , & Huberman, B. A. (2010) will be that companies might be able to predict the success or failing of an offering without actually introducing it. This will likely be achieved through social networking websites just like companies are doing right now however statistical models can be applied to check the success rate of any product/service. In addition marketing gurus express the e-marketing will be the future of marketing since customers are no longer attracted to the original marketing techniques. What the clients now need is a fairly customized and direct approach through which they are listened up to companies speak about themselves. To achieve this goal companies will be using social media stations such as facebook and Twitter to form long-term associations with the clients. We can even say that sociable media might become the next big thing for advertising campaign departing TVCs and printing media behind. The main reason is actually the changing preferences of targeted customers which are mostly Technology X and Y who tend to be more tech savvy and internet surfers. Even the current statistics of facebook and Twitter show the street ahead as studies state that 55% users of facebook state that they are likely to recommend a brand after becoming its "fan" and 34% of the marketers have mentioned to create their leads through Twitter (Digital Excitement Blog, 2012). With such statistics we can conclude that cultural multimedia has a bright future in advance and over the next decade who understands we would be teaching the business enterprise students 4 P's of SOCIAL MEDIA Mix. Furthermore this marketing channel will cause a paradigm switch a will change the facial skin of marketing as we know it. Old marketing procedures will be abolished and considered obsolete. The companies which will not move forwards and conform this new strategy will be shedding on a significant competitive border which companies highly dynamic on networks will gain.


Since social media has itself become a viral marketing technique it has turned into a business norm for companies to tag their existence online if not they could be considered lacking in their marketing aspects. However such innovative marketing techniques since completely different from the traditional marketing techniques have to be implemented tactfully. Just like marketers were needed for creating a traditional marketing plan in the same way experts are needed for socializing on the communal media with the public and making their web pages meaningful, relevant and distinctive for the client. The marketing promotions should also include something customers can connect with since it is similar to an informal connection channel with the client through which companies can communicate about them along with listening to what the clients have to say. This is why companies have a tendency to encourage customers on social networking websites to talk about their feelings, associations and activities with the merchandise. Such writing of information creates a wholesome and long-term romance between customer and the business. This marketing strategy allows the companies to disseminate information regarding any future event, product or start directly to the end user thus eliminating any intermediary cost that was incurred in traditional marketing strategy. However as stated earlier that strategy along with several advantage has some drawbacks to it as well but which strategy doesn't? Whether or not the pros are contrasted with the downsides of social press strategy we will see that its benefits outweigh the drawbacks. Therefore companies who need to generate brand collateral must get themselves socially associated with the public and build relationships with the customers exactly like Pepsi did. The proof of success of viral marketing through cultural media can be seen in numerous illustrations one of which is the new tune Gangnam Style by PSY which gained an incredible number of views in just a matter of days thus communal media is another big part of marketing.

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