COMMUNICATIONS BRIEF

RACHEL SALABES
CORPORATE COMMUNICATIONS
MARCH 3, 2011
 I. The Corporation – Background

PepsiCo is a publicly traded corporation, originally founded in 1965 with the merging of

Pepsi-Cola and Frito-Lay Inc.i The corporation is currently a Fortune 500 company and has made

many prominent acquisitions over the years, including Tropicana and Quaker.ii As a result of

these multiple acquisitions and mergers, PepsiCo manufactures, markets and distributes a variety

of products, from Lays and Doritos to Sierra Mist, SoBe and Gatorade.

Under Chairman and CEO Indra Nooyi, PepsiCo currently has the world's largest

portfolio of billion dollar food and beverage brands, with 19 product lines that each generate over

$1 billion in retail sales.iii PepsiCo products are distributed across more than 200 countries and

the company employs approximately 285,000 people worldwide. Having just been recognized as

a 2011 “Most Innovative Company”, PepsiCo’s overall vision is to “continually improve all

aspects of the world in which we operate - environment, social, economic.”iv

II. The Crisis

On February 8, 2011, PepsiCo announced the launch of the new Diet Pepsi Skinny Can.

In a statement, PepsiCo's Chief Marketing Officer Jill Beraud said:

“Diet Pepsi has a long history of celebrating women through iconic fashion imagery seen
in our infamous and historical campaigns, and we're proud to continue that tradition as an
official sponsor of Mercedes-Benz Fashion Week. Our slim, attractive new can is the
perfect complement to today's most stylish looks, and we're excited to throw its coming-
out party during the biggest celebration of innovative design in the world.”v

Overall, brand experts have praised the new design; however, PepsiCo's marketing

campaign has resulted in an immediate backlash. Many women, as well as the mainstream

media, have expressed outrage over the campaign, which markets the skinny design as a

“celebration of beautiful, confident women”vi. The launch was paired with New York Fashion

Week, an event that is often associated with unnaturally thin models. Among those fighting back
is The National Eating Disorders Association which called the company's actions “thoughtless

and irresponsible”vii.

Rather than stories about the can's launch, this controversy has taken over the news.

Furthermore, print advertisements featuring Modern Family actress Sofia Vergara have resulted in

criticism from the public for hiding the majority of Vergara's body and speculation that Photoshop

was used extensively. PepsiCo's limited response to this controversy makes the company appear

blasé to the opinions of its consumers.

III.Communications Plan

A Google search of keywords “Pepsi” and “Skinny Can” reveals an extensive list of

stories covering the controversy rather than positive news about the product's launch. As a

communications consultant, I will recommend an effective plan that will restore PepsiCo's

reputation for caring about consumers by obtaining three main objectives:

a. Reinforcing PepsiCo’s dedication to women

b. Increasing positive reception from consumers
c. Increasing positive attention from mainstream media

These objectives will ultimately be accomplished through relaunching the Skinny Can marketing

campaign. This new strategy will need to target each of Pepsi's constituencies. Due to the can's

association with style and fashion, the target consumers to address are women, particularly teens

and young adults within the 18-49 demographic.

PepsiCo must also address the mainstream media which have been closely covering this

controversy. This new communications strategy will require that the organization communicate

with the media, both through press releases and interviews. As a publicly traded company, it is

also essential that PepsiCo communicate with investors and stakeholders, announcing that the

relaunched marketing campaign will restore the company’s reputation.

To communicate these new messages, PepsiCo will use the company website to post press
releases and news concerning the marketing campaign. This new strategy will also implement

social media, including Facebook and Twitter to connect with consumers. Finally, print media,

mainly magazines, will also be used to showcase the campaign's revamped advertisements.

PepsiCo has done little in responding to the backlash, releasing one emailed statement,

“We are sensitive to this interpretation, and that is definitely not our intent. We intend to highlight

the innovative look for Diet Pepsi and provide our fans with an 'inside look' at events that

celebrate innovation and style.”viii I recommend that Pepsi send and post a more thorough press

release, directly apologizing for any offense taken to the can's advertising. In this release, the

positive vision for the can will once again be emphasized, as well as steps Pepsi has taken to help

and encourage women. Those taking part in criticism of the Skinny Can may not be aware of

PepsiCo's creation of the Women's Inspiration Network.ix Part of this press release will highlight

Pepsi's continuing dedication to women through their initiative in creating this online community

for women, offering content on topics such as environment, health and wellness.x

In addition to the press release, PepsiCo will relaunch the marketing campaign

surrounding the Skinny Can, while still emphasizing design, fashion and style. PepsiCo will

create a Facebook page specifically for the Skinny Can to connect with consumers and share

news. A twitter search of PepsiCo's designated Skinny Can hashtag yields limited results;

therefore, PepsiCo will create and highly publicize a new campaign, encouraging people to tweet

photos of themselves (with hashtag #skinnycan) or post photos on the Facebook page, holding the

can as an “accessory”. Participants will be encouraged to highlight their personal style and will be

motivated to participate with the incentive of winning a trip to New York City, the fashion capital

of the U.S. As these photos roll in, users will start to associate the Skinny Can with the average

person celebrating their own unique style, rather than with celebrities and fashion week models.

This campaign maintains the association with fashion without tying the launch to Fashion Week,
which has proved to be problematic for the corporation.

The current print advertisements will also cease to run. PepsiCo will visualize new ads

with actress Sofia Vergara. These ads should highlight Sofia's notoriously curvy body shape,

rather than hide it. The new advertisements will show that PepsiCo does not equate beauty and

confidence with unnaturally thin women. These ads will run in magazines that target various

female age demographics, including Lucky, Elle and Glamour. These magazines each have a high

circulation rate, with at least a million readers per month.xi

This communications plan will be implemented immediately. The press release should be

sent in the next several days with immediate results because it will be available for the public to

read through the company's website, online news websites and social media. Results will also

instantly be evident with the launch of the new social media campaign, which should be

implemented within the next two weeks. Results from the relaunched print campaign will take

several months due to the printing schedule of monthly magazines.

IV. Implementation

PepsiCo must immediately dedicate a budget to this crisis, as well as appoint a marketing

team with the sole responsibility of handling the Skinny Can relaunch. The first priority will be to

send the new press release, which should be posted on the company's website and sent to all

mainstream media. As a major component of the relaunch, the marketing team should also have

several people dedicated to the creation and promotion of the new social media campaign in order

to get it launched within the next two weeks. Simultaneously, the company should also begin

working on the new print ads. With a magazine's printing schedule already several months ahead,

this task should be completed as soon as possible to have the ads ready for the next issue going to

print. The majority of the designated budget will go to getting these advertisements completed

and running in as many high profile magazines as possible.

 Success will be measured mainly through Google searches and social media monitoring.

By searching the Skinny Can hashtag (#skinnycan), both the amount of conversation will be

measured and whether the tone is positive or negative. Participation in the social media campaign

will also help to measure whether this new strategy has been a success. Analysis of Google

searches will show if the conversation has shifted from the controversy to discussion of the new

product design. Furthermore, the tone of media coverage will be analyzed, showing whether the

majority of stories are positive or negative. Blog discussions and article comments will also be

viewed to determine if the relaunch of the marketing and advertising campaign is being well

received by the public, particularly the target market.

VI. Summary and Recommendations for Action

In looking to refresh the image of Diet Pepsi, the company has inadvertently offended the

target audience through their marketing campaign and the launch of the Skinny Can at New York

Fashion Week. Consumers believed the marketing campaign, including print advertisements,

promoted the negative message that one must be skinny to be beautiful.

PepsiCo should remedy this controversy by implementing a communications plan with the

aim of restoring its reputation as dedicated to women, increasing positive reception from

consumers and increasing positive coverage from the mainstream media. The proposed course of

action is to compose a new press release, apologizing and emphasizing the positive campaigns the

company has initiated for women. This will immediately be followed by a revamped marketing

campaign that includes the use of social networks. New print advertisements will also begin

appearing in high profile magazines within the next several months. This strategy should

effectively reassure all of Pepsi's most important constituencies including consumers, mainstream

media, as well as investors and stakeholders that PepsiCo cares about its customers.
i
“Our History”. PepsiCo. http://pepsico.com/Company/Our-History.html
ii
Wikipedia contributors, “PepsiCo”. Wikipedia, The Free Encyclopedia. http://en.wikipedia.org/wiki/PepsiCo
iii
Wikipedia contributors, “PepsiCo”. Wikipedia, The Free Encyclopedia. http://en.wikipedia.org/wiki/PepsiCo
iv
“Our Mission and Vision”. PepsiCo. http://pepsico.com/Company/Our-Mission-and-Vision.html
v
“Diet Pepsi Debuts its Sleek, New Look at Mercedes-Benz Fashion Week”. PepsiCo. 8 Feb 2011.
http://www.pepsico.com/PressRelease/Diet-Pepsi-Debuts-its-Sleek-New-Look-at-Mercedes-Benz-Fashion-
Week02082011.html
vi
Perton, Marc. “Does Diet Pepsi's Skinny Can Send The Wrong Message?” Consumerist. 15 Feb
2011.http://consumerist.com/2011/02/does-diet-pepsis-skinny-can-send-the-wrong-message.html
vii
Perton, Marc. “Does Diet Pepsi's Skinny Can Send The Wrong Message?” Consumerist. 15 Feb
2011.http://consumerist.com/2011/02/does-diet-pepsis-skinny-can-send-the-wrong-message.html
viii
Perton, Marc. “Does Diet Pepsi's Skinny Can Send The Wrong Message?” Consumerist. 15 Feb
2011.http://consumerist.com/2011/02/does-diet-pepsis-skinny-can-send-the-wrong-message.html
ix
“About” PepsiCo Win. http://pepsicowin.com/about/
x
“About” PepsiCo Win. http://pepsicowin.com/about/
xi
“List of magazines by circulation”. Wikipedia, The Free Encyclopedia.
http://en.wikipedia.org/wiki/List_of_magazines_by_circulation#United_States