The Pepsi Refresh Project: Inside the Secret Formula

A Conversation with David Dreyer of TBWA\CHIAT\DAY

In January, Vitamin IMC ran a post about Pepsi’s decision to spend millions on a program called the Pepsi Refresh Project instead of investing in its traditional Super Bowl advertising spots. Little did we know that the concept was developed by a team from TBWA\CHIAT\DAY Los Angeles that included Medill IMC alum David Dreyer. Vitamin IMC Social Media Director Anne Mahoney was fortunate enough to have a conversation with David on the strategy and IMC elements behind the successful project.

On Strategy

“Pepsi wasn’t going to be the first to do philanthropic work or social media, and didn’t want to be a ‘me too’,” said Dreyer.

So how did TBWA\CHIAT\DAY propose capturing the essence of the Pepsi brand in an authentic way that resonated with consumers?

“Pepsi has always been at its best as a catalyst for change. In the Great Depression, it doubled the amount of ounces for the same cost. During World War II, it adopted its patriotic red, white and blue colors. It was always leading culture.”

The Pepsi Refresh Project was an idea formed from consumer insights. The Pepsi Refresh Project gives financial grants to anyone’s causes or ideas that gain the highest number of votes. With enthusiastic support from Pepsi CEO Indra Nooyi and company bottlers, the TBWA\CHIAT\DAY developed its rollout plan to the public.

“It was very deliberate – a marathon and not a sprint,” said Dreyer. “Refresh was launched in 2009 when we talked about it [to the public], and in 2010 we acted on it.”

Grant submissions began online in January 2010, with a cap of 1,000 on a first-come, first-serve basis each month. To give an idea of how popular the Pepsi Refresh Project has become, that 1,000-submission quota was reached in 30 minutes when opened for April.

On Engagement

The Refresh Project gives Pepsi the extra marketing power Super Bowl commercials fall short on – customer engagement. Where companies pay millions for celebrities to endorse their brands, Pepsi now has celebrities coming to them wishing to participate. Rihanna, Jenny McCarthy, Eva Longoria and Mariska Hargitay are just a few who have submitted grant ideas.

A great example of how the Refresh Project has helped its consumers is the case of Johnny Greenshield, a 14-year-old who won $25,000 with his homemade video of a new aerodynamic hood invention for buses.

On Demographics

When I think Pepsi marketing, I think of Gen Y as the ideal target audience. David had an intriguing response to that assumption.

“Pepsi symbolized youth, but some of its most loyal consumers are boomers. It needed an idea that bridged gap between millennials and boomers. Both groups are powerful agents of change, but because of psychographics rather than demographics.”

Do you think that boomers are too far outside of the internet age to participate?

“The majority of ideas are submitted by boomers, and they are the fastest growing demographic on Facebook,” Dreyer continued. “They have time, are computer-savvy, and it’s a way for them to keep in contact with friends and family.”

The Pepsi Refresh Project is an integrated marketing campaign that we’re continuing to keep an eye on. I’d like to give my personal thanks to David Dreyer for sharing his insights with Vitamin IMC.

--Anne Mahoney

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Anne Mahoney is the Social Media Director of Vitamin IMC and a student in the Masters in Integrated Marketing Communications program at Northwestern University’s Medill School. In the 90s she tried to win Deion Sanders gear through the Pepsi Stuff promotion. She can be reached at AnneMahoney2010@u.northwestern.edu.

Mobilizing to donate after the Haiti quake

Text “Haiti” to 90999 to Donate $10 to The Red Cross. This message proliferated the internet and television within hours of the Jan. 12 catastrophic earthquake in Haiti.

Since then The Red Cross’ text-to-donate campaign collected a staggering $21 million, dwarfing the $4 million total of all charitable ‘text’ drives in 2009. Most notable was the first 48 hours – people gave The Red Cross more money faster than in the wake of Hurricane Katrina, the Asian tsunami, or any disaster to date.

The operation is backed by Mobile Accord’s mGive Foundation, the first company to offer mobile donation services to non-profit organizations back in 2005. Donors’ pledges are added to their cell phone billing statements.

From a cause marketing standpoint, $10 increments paired with mobile accessibility is a winning combination. Simply cutting out the need for Americans to give an intermediary their credit card information enabled a mass reaction.

The text-to-donate message was not seamless. False word spread on Twitter that AT&T was not participating in the campaign as customers slammed the carrier for preventing them from helping victims. But AT&T spokesman Steven Schwadron quickly clarified that was a rumor: it was on board with The Red Cross and messaging rates would not apply to donation texts. AT&T customers contributed half of the first $9 million collected via text message. However, The Wall Street Journal did its part to warn the public to do research before texting away money, citing up to 90 days’ lag time before the phone company pays the charity.

Natural disasters bring together great minds and able bodies to help those affected. The difference with today’s tragedy in Haiti is newfound strength in mobile technology.

Charitable reaction to the Haiti quake glimpsed the symbiotic IMC process. Americans immediately saw footage of earthquake victims on television, online and in print news, and were driven to help however they could.

Will this tragedy instill confidence on a greater level for mobile charity? For mobile commerce?

We can’t deny its power. Companies are truly mobilizing for the future; take Apple’s recent purchase of mobile ad company Quattro Wireless. The technology exists and millions just adopted it.

Today we move forward, to repair and to improve.

--Susan Monahan

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Susan Monahan is a Blogger at Vitamin IMC and a graduate student in the Masters in Integrated Marketing Communications program at Northwestern University's Medill School. She was deeply moved by the global community's quick response to the victims of the earthquake in Haiti. Susan can be reached at susanmonahan2010@u.northwestern.edu.

Pepsi’s Super Bold Cause Marketing Move

It’s tough to imagine the Super Bowl without the Pepsi ads. Full of pop culture, sex appeal and charm, the spendy spots are being benched this year in favor of a new marketing plan. The soda giant is instead re-funneling $20 million of its advertising dollars to the “Pepsi Refresh Project,” awarding grant money to community projects selected by its consumers. The Wall Street Journal offers a comprehensive piece on the decision, but here’s my perspective as an IMC student, armchair advertising critic and Pepsi drinker.

In its current stage – before consumer engagement, attitudes and profit margins are calculated – Pepsi’s strategy is downright applaudable. It likely wouldn’t have had the same effect just two years ago. Back then, we Americans basked in frivolity. Paying $2.7 million for a 30 second first quarter belly laugh was pure bragging rights for many a company. Sure, Pepsi also was likely backed into spending binges by direct pressure from Coca-Cola. To remove themselves from competition on the biggest advertising platform in the world must have more than a few Pepsi executives biting their nails right now. But my prediction is this: it will be worth it, and here’s why:

Word of Mouth. People will talk about the Pepsi Refresh Project because it’s unconventional, risky and doing some good. If it’s possible to change attitudes, this program has more potential than a short-lived advertisement. Remember Mister Splashy Pants?

Social Media. There’s potential for Pepsi to have a bonanza here. Cause marketing works when people are given the power of participatory influence. Viral engagement will lead to an “everybody wins” scenario, including consumers and the communities being served. Oh, and more brand equity isn’t bad, either.

Legacy. If this concept is ultimately profitable, it will not only be a success story, but one exemplifying a true change in consumer behavior. Although copycats will follow, I think Pepsi will be preserved as a heartfelt pioneer because of the level of risk taken on with this program.

So Pepsi, good luck to you. The bubbly Super Bowl ads will be missed, but the Refresh Project is definitely going to be fun to watch.

--Anne Mahoney

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Anne Mahoney is the Social Media Director of Vitamin IMC and a student in the Masters in Integrated Marketing Communications program at Northwestern University’s Medill School. She is hoping to watch the Vikings take the cake at the Super Bowl this year. She can be reached at AnneMahoney2010@u.northwestern.edu.

Ford “Pony Girl” Targets Tweens and Teens

Last week, Ford Motor Co. announced a move to target tween and teenage girls after research released by trend tracking firm The Zandl Group indicated that the Mustang is the “most desired car” among girls ages 8 to 16. “Pony Girl by Mustang,” according to the April 9 Brandweek article, is an “automotive-inspired, lifestyle-driven licensing program” designed to build brand affinity before its target demographic is old enough to take the wheels, in hopes that when the time does come to buy that first car, they will buy a Mustang.

With a colorful, “girly” style guide and a logo that features the Mustang brand’s iconic galloping horse, the program is intended to be aspirational—not promotional. According to John Nens, Ford’s director of global brand licensing, the program is really about “the essence of the brand” and forging brand relationships early on. The product categories being explored include apparel, accessories, jewelry, cosmetics, home décor and back-to-school partnerships.

It seems like a no-brainer: an underserved target market, dying to get a piece of the Mustang brand, a character from a wildly-popular movie franchise who drives a pink, monogrammed version of the car—and research that backs it all up. But, while the insight points to a great opportunity, the execution may be pointing toward disaster.

A simple web search of the term “pony girl” indicates that Ford and its licensing agency, the Beanstalk group, may have more work to do yet, in developing a strategy for execution that won’t have legions of mommy bloggers up in arms. Even among Mustang’s most passionate fans, the term “pony girl” has an entirely different meaning than the one likely intended for the tween consumer—just check out the photo galleries at any enthusiast website.

Could Ford be headed toward the same faux pas that forced Motrin to pull the baby-as-fashion ads that had Twitter ablaze with outraged mothers in November of last year?

--Guest Contributor: Alexandra Walford, IMC Graduate Student

P&G's Digital Hack Night

Last night, P&G held an experiment combining digital marketing experts with the power of social networks for a cause. The first-time event, called Digital Hack Night, hosted 40 people from Facebook, Google and several agencies to share the hands-on experience of reaching a market digitally through viral means. 

Instead of marketing the Tide product, the teams were competing to see who could sell the most vintage T-shirts; proceeds benefited the Loads of Hope program which partners with Feeding America to provide clean clothes to victims of natural disasters.

*image from www.polyvore.com

Information about the event showed up on popular blogs, on Facebook, and on Twitter  with the tags #pgdigital and #tide. In just a few hours sales of the shirts reached $50k and Tide matched $50k, raising $100k before midnight.  

Partnering with a cause can be a great strategic move for a company, as both sides reap benefits. P&G has been actively using cause marketing to enhance the value argument it is making for its products in this recession . 

Using social media for good is an increasing trend. Coupling this action with a marketing effort just might be the next big thing. If used appropriately, causes may help companies show authenticity to their customers and improve the strength of relationships.

IMC campaigns embrace the power of social media for marketing. By leveraging the power of word of mouth and the instant responsiveness of networks like Twitter, messages can spread quickly and reinforce a brand's image. However, social media must be utilized correctly in order for a campaign to be a success. Not every channel is appropriate for every company, brand, or campaign.

P&G set a great example with this challenge - marketers need to engage with social media to learn best practices to incorporate into future campaigns. The best part about this event was that it was organized by P&G, not an agency or a social media expert. And P&G chose a cause that fit with the Tide brand. By making the effort to learn how social media can best be used for its products, P&G went straight to the best minds in the industry, and emerged with knowledge it can use to market its other products and a successful charity event that will bode well with its consumers. I know I'm more likely to purchase Tide or other P&G products now - how about you?

--Stacy Cohen

Wonderful World of Widgets

Widgets. No, we're not talking about those fictional products that you use to read about in story problems for math class. We're talking about those little applications that countdown to your wedding, add a cyber pet to your blog, or help you find a restaurant on your iPhone.

Many widgets are created by developers as a hobby, however, widgets are now being created by marketers and nonprofits as a way to share information about their organizations. When implemented properly, widgets can be a great tool because they allow for the benefits of word of mouth. If the message or product featured in the widget is something that people are passionate about, they will want to talk about it. A widget is like a digital bumper sticker that allows the audience to show their support by sticking it on their Web site, blog, Facebook page, etc with the added benefit of being a convenient and interesting way to share the message (and it won't ruin your car!).

One example is the Deadly in Pink widget from the Campaign for Tobacco-Free Kids. Advertising from tobacco companies is a topic many people are passionate about and the widget is a way to show their stance on the issue, spread the word, and obtain additional information. 

Just think, maybe in the future "My kid is an honor roll student" bumper stickers will be replaced by widgets displayed on proud parent's blogs and, of course, shared with all their family and friends. 

Ready to test out some widgets or create your own? Check out these sites, and let us know what you think: Zembly,iWidgets, Sprout, Widgetbox

--Stacy Cohen and Marina Molenda

Twestival: Meet and Tweet For a Cause

Last night communities of Tweeters met in over 175 cities around the world to raise money and awareness for charity:water, an innovative non-profit dedicated to providing clean water to developing communities in desperate need. What started as a small gathering to benefit a local charity in London last year has evolved into a global fund raising event that is 100% volunteer organized. Early reports are predicting $1million was raised. Vitamin IMC attended the Chicago Twestival at Catalyst Ranch, a cool and funky converted loft that oozed creativity from every corner. 

Meeting other twitter users face to face was a great opportunity to network, share ideas and discuss the endless capabilities of Twitter. We'll explore these capabilities ourselves and how Twitter can be used as a marketing tool in an upcoming post. 

Referred to as the Live Aid of the tech world , Twestival's success highlights the power of social media. Not only does it allow you to share and connect with other users, but it can also be used to mobilize its users to effect social change. Social media is an important aspect of developing an IMC strategy, and as shown by Twestival, when used properly can yield great returns. We expect to see more events like Twestival in the future as the true value of social media is realized by more people.

So tell us, did you attend Twestival? What do you think about the power of social media?

--Stacy Cohen