Pepsi Case Study: Lessons from the 2017 Ad Controversy and Brand Impact | Môn Brand Management - Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

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Case Study: Pepsi’s 2017 Advertisement Controversy
What was the primary objective of Pepsi’s 2017 advertisement featuring Kendall Jenner?
Pepsi aimed to appeal to younger audiences by aligning the brand with themes of
activism, unity, and social justice movements.
How did Pepsi traditionally position itself in the market before the
controversy? Pepsi positioned itself as a youthful, energetic, and refreshing brand,
aligning with popular culture, music, and social trends to appeal to millennial and Gen Z consumers.
What themes did Pepsi attempt to incorporate into the campaign, and why did they backfire?
Pepsi attempted to incorporate themes of activism, unity, and social justice, inspired by
movements like Black Lives Matter. However, the ad backfired because it was seen as
trivializing serious social issues, appearing tone-deaf, and exploiting activism.
What were the key criticisms of the ad? How did it trivialize social movements?
- Reduced serious activism to a marketing tool.
- Ignored the real struggles of social justice movements.
How did social media contribute to the rapid spread of criticism against the campaign?
Platforms like Twitter and Instagram allowed activists, public figures, and users to quickly
share their outrage, turning the campaign into a global controversy.
What were the immediate consequences of the advertisement for Pepsi’s brand equity?
The ad led to a swift retraction of the campaign, widespread negative publicity, and a
significant blow to Pepsi’s credibility. The brand was criticized for being exploitative and
insensitive, damaging its reputation as a progressive and culturally relevant company.
How did consumer perception of Pepsi change as a result of the
controversy? Consumers began to view Pepsi as opportunistic and disconnected
from the realities of social issues. lOMoAR cPSD| 59085392
How did Pepsi’s response to the backlash influence its long-term brand positioning?
Pepsi issued a public apology, withdrew from socially charged messaging, and refocused
on traditional themes like music and youth culture. This shift helped the brand recover
over time by avoiding controversial topics and emphasizing safer, more inclusive narratives.
In what ways did this campaign affect Pepsi’s relationship with socially conscious consumers?
The campaign alienated socially conscious consumers, who felt Pepsi exploited serious
issues for profit. Rebuilding trust required Pepsi to distance itself from activism-focused
marketing and demonstrate a more genuine, non-exploitative approach to social issues.
What lessons can be learned about the risks of using activism in marketing?
Brands must prioritize cultural sensitivity, authenticity, and thorough consumer research
to avoid trivializing serious issues and damaging their reputation.
Can you think of other brands that have successfully incorporated social
justice messaging into their marketing? What did they do differently from Pepsi?
- **Nike:** With its Colin Kaepernick campaign, Nike aligned with a genuine social justice
cause, supporting Kaepernick’s stance against racial injustice. The campaign was
wellreceived because it reflected Nike’s long-standing commitment to empowerment
and resonated authentically with its audience.
If you were a marketing consultant for Pepsi at the time, how would you
have advised them to handle the situation differently? - Avoid superficial activism.
- Collaborate with social justice organizations to ensure authenticity.
- Focus on inclusive, non-controversial themes like music and youth culture.
- Conduct rigorous testing with diverse focus groups.
- Issue a sincere apology immediately, outlining steps to prevent future mistakes.
How can brands test campaigns more effectively to prevent such missteps?
- Conduct focus groups with diverse audiences.
- Use social media sentiment analysis to gauge early reactions.
- Partner with cultural consultants or activists for feedback.- Run small-scale pilot
campaigns before full launches. lOMoAR cPSD| 59085392
What role does cultural sensitivity play in brand marketing, and how can
companies ensure they respect social movements while engaging with them?
- Educate themselves on the history and nuances of social movements.
- Collaborate with activists and communities directly affected by the issues.- Avoid
oversimplification or trivialization of complex topics.
How can Pepsi continue rebuilding trust with consumers after this
controversy? - Acknowledge the misstep, listen to feedback, and focus on authentic,
socially responsible initiatives.
- Partner with credible organizations and avoid trivializing serious issues.
How has this controversy influenced Pepsi’s marketing approach in the years since?
Pepsi has likely become more cautious and research-driven, ensuring campaigns align
with consumer values and avoid oversimplifying complex issues.
What impact did this incident have on corporate responsibility in
advertising as a whole?
- Increased scrutiny on brands to address social issues authentically, avoiding 'wokewashing.'
- Set a precedent for more thoughtful, culturally sensitive advertising.