Harvard Case - Pepsi-Lipton Brisk
"Pepsi-Lipton Brisk" Harvard business case study is written by Thales S. Teixeira, Alison Caverly. It deals with the challenges in the field of General Management. The case study is 23 page(s) long and it was first published on : Sep 6, 2011
At Fern Fort University, we recommend PepsiCo and Unilever implement a strategic partnership to revitalize the Brisk brand, focusing on a multi-pronged approach that leverages both companies' strengths in innovation, marketing, and distribution. This partnership will involve a collaborative product development process, a targeted marketing campaign utilizing digital channels and influencer marketing, and a renewed focus on environmental sustainability to appeal to a younger, health-conscious consumer base.
2. Background
The case study focuses on the struggling Brisk iced tea brand, a joint venture between PepsiCo and Unilever. Brisk faced declining sales and market share, particularly among younger consumers who preferred healthier, more natural beverage options. The case highlights the challenges of managing a joint venture, including conflicting priorities, communication breakdowns, and a lack of clear strategic direction.
The main protagonists are:
- PepsiCo: A global food and beverage giant with extensive resources and a strong distribution network.
- Unilever: A multinational consumer goods company specializing in personal care, food, and beverages.
- Brisk: The joint venture brand struggling to maintain its market position.
3. Analysis of the Case Study
The case study can be analyzed using the following frameworks:
- SWOT Analysis:
- Strengths: Brisk has a strong brand recognition, established distribution network, and a loyal customer base.
- Weaknesses: The product is perceived as unhealthy, lacks innovation, and has limited marketing appeal.
- Opportunities: Growing demand for healthier beverage options, potential for product diversification, and expanding into emerging markets.
- Threats: Competition from other brands, changing consumer preferences, and economic fluctuations.
- Porter's Five Forces:
- Threat of new entrants: High, due to the ease of entry into the beverage market.
- Bargaining power of buyers: Moderate, as consumers have a wide range of choices.
- Bargaining power of suppliers: Moderate, as ingredients are readily available.
- Threat of substitute products: High, as consumers can choose from various alternatives like water, juice, and other teas.
- Rivalry among existing competitors: High, due to the intense competition in the beverage market.
- Strategic Analysis:
- Corporate strategy: PepsiCo and Unilever need to align their corporate strategies to create a unified vision for Brisk.
- Growth strategy: The focus should be on organic growth through product innovation and market expansion, rather than acquisitions.
- Competitive strategy: Brisk needs to differentiate itself from competitors by focusing on health, sustainability, and innovation.
4. Recommendations
1. Strategic Partnership: PepsiCo and Unilever should establish a dedicated team to manage the Brisk brand, with clear responsibilities and shared goals. This team should focus on:
- Product Development: Collaborate on new product lines that cater to health-conscious consumers, incorporating natural ingredients, lower sugar content, and innovative flavors.
- Marketing Strategy: Develop a comprehensive marketing campaign that leverages digital channels, influencer marketing, and social media to reach younger audiences.
- Distribution Strategy: Optimize Brisk's distribution network, leveraging PepsiCo's strong presence in the beverage market.
2. Innovation and Sustainability: Brisk should invest in research and development to create innovative products that appeal to health-conscious consumers. This includes:
- Natural Ingredients: Focus on using natural ingredients and reducing sugar content.
- Sustainable Packaging: Implement sustainable packaging solutions to reduce environmental impact.
- Transparency: Promote transparency in ingredient sourcing and production processes.
3. Targeted Marketing: Brisk should develop a targeted marketing campaign that resonates with younger consumers, emphasizing:
- Health and Wellness: Highlight the health benefits of tea and the natural ingredients used in Brisk products.
- Sustainability: Promote Brisk's commitment to environmental sustainability and responsible sourcing.
- Digital Engagement: Leverage social media, influencers, and digital advertising to reach target audiences.
4. Employee Engagement: PepsiCo and Unilever should foster a collaborative and innovative culture within the Brisk team, encouraging:
- Open Communication: Facilitate open communication and feedback between teams.
- Employee Empowerment: Empower employees to contribute ideas and solutions.
- Performance Evaluation: Implement performance evaluation systems that align with the strategic goals of the Brisk brand.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies: Leveraging PepsiCo's distribution network and Unilever's expertise in product development and marketing.
- External Customers: Targeting health-conscious consumers, particularly younger demographics.
- Competitors: Differentiating Brisk from competitors by focusing on health, sustainability, and innovation.
- Attractiveness: The recommendations are expected to increase brand awareness, market share, and profitability.
Assumptions:
- The partnership between PepsiCo and Unilever will be successful and collaborative.
- Consumers will respond positively to the new product offerings and marketing campaign.
- The investment in innovation and sustainability will be profitable in the long term.
6. Conclusion
By implementing a strategic partnership, focusing on innovation and sustainability, and adopting a targeted marketing approach, Brisk can revitalize its brand and regain its market position. This strategy will appeal to a younger, health-conscious consumer base, driving growth and profitability for both PepsiCo and Unilever.
7. Discussion
Alternatives:
- Acquisition: PepsiCo or Unilever could acquire a competitor in the healthy beverage market. However, this would be a costly and risky option.
- Brand Repositioning: Brisk could attempt to reposition itself as a premium brand, targeting a niche market. However, this would require significant investment and may not be successful.
Risks:
- Execution Risk: The successful implementation of the recommendations requires effective collaboration and communication between PepsiCo and Unilever.
- Market Risk: The beverage market is highly competitive, and consumer preferences are constantly changing.
- Financial Risk: The investment in innovation, marketing, and distribution may not generate a quick return on investment.
Key Assumptions:
- The strategic partnership will be successful in driving innovation and growth.
- Consumers will respond positively to the new product offerings and marketing campaign.
- The investment in sustainability will be profitable and will enhance brand image.
8. Next Steps
- Establish a Strategic Partnership Team: Form a dedicated team to manage the Brisk brand, with clear responsibilities and shared goals.
- Develop a Product Roadmap: Identify new product lines and develop a timeline for their launch.
- Launch a Marketing Campaign: Develop and execute a targeted marketing campaign across digital channels and social media.
- Monitor Performance: Track key performance indicators (KPIs) such as sales, market share, and brand awareness.
- Continuously Evaluate and Adapt: Regularly review the strategy and adjust it based on market feedback and performance data.
By taking these steps, PepsiCo and Unilever can revitalize the Brisk brand, positioning it for long-term success in the evolving beverage market.
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Case Description
This case showcases key decisions in promoting the re-launch of Brisk, a ready-to-drink iced tea by Pepsi-Lipton. The decisions are: creative, media and metrics selection. It also deals with budget allocation to traditional (Super Bowl, television) and new (viral ads and social) media.
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