Positioning in Marketing: The Downfall of Pepsi Blue

When I was 7 years old, I learned about the importance of positioning in marketing, without being aware of it. In 2002, Pepsi released its new soft drink, Pepsi Blue. Having the flavour of berries and cotton candy, in my seven year old opinion, it was absolutely delicious. Yet by the time I turned 9, Pepsi had pulled Pepsi Blue from the market and no longer sold it in North America. As I mourned the news, I wondered why Pepsi Blue had failed. Now, as a 17 year old Business student, I can see why. Pepsi did not understand how to properly name and market their new product. In the 1981 book, Positioning: The Battle for your Mind, Al Ries and Jack Trout described how marketing involves positioning products in the minds of consumers. They discussed the free-ride trap, where companies release a new product, under the name of a pre-existing product (e.g. Pepsi Blue). The downside of this strategy is the original product already holds a position in the customer’s mind. Therefore, when people thought of Pepsi Blue, they thought it would taste like Pepsi, not a super-sugary berry drink. As a result of this, consumers were disappointed when they bought the product. If Pepsi had called the product Berry Blue, and not included Pepsi in the title (e.g. 7UP, Mountain Dew, Mug), it would have been far more successful.

http://www.quickmba.com/marketing/ries-trout/positioning/