Pepsi’s Smooth

Essay by EssaySwap ContributorUniversity, Master's February 2008

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Summary Brian Swette, Pepsi's Senior Vice President for Brand Development, think that milk has the potential to grow. He wants to build an entirely new business in the dairy category. He proposed a new product, Smooth Moos Smoothies, a milk-based smoothie that comes in four flavors, and "Spot" the cow is being used as its advertising mascot. Milk is a commodity-like generic product, but Brian wants to change that by building a unique identity for Smooth Moos amongst its early-teen target market. Also, Pepsi tries to test the market's reaction to this new product.

Beverage Consumption trend 1. More and more Americans consume non-alcoholic and light alcoholic beverages. Soft drinks and bottled water has the greatest long term increase.

2. Coffee consumption has remained steady 3. Milk Consumption is falling slightly 4. Whole milk consumption has fallen dramatically with modest increases in the consumption of 1% milk Target Group The targeted group is market's youth segment.

It retailed for $.89 a bottle and was being sold in the test area's convenience stores and filling station quick marts Steps of the test 1. Determine the descriptors the target user-group used when relating to the product, by studying 25 sixth-grade students 2. Determine how the target market group actually described the product's taste, appearance, and texture as well as to what alternate product or product they could compare each flavor and drink (eight sixth grade students, equally divided between males and females 3. An eighteen-question questionnaire cover both the vanilla and chocolate flavors was created from information obtained from the study's previous steps 4. Blind taste-test to compare smooth Moos French Vanilla to McDonald's vanilla shake drink and to compare Smooth Moos Double Chocolate to YooHoo Test Result 1. Chocolate Smooth Moos was preferred over YooHoo by a wide margin 2. Narrow margin preferred the McDonald's shake over the vanilla Smooth Moos Comment According to milk consumption, increasing number of people consume 1% milk. Since the Smooth Moos Smoothies is a 1% low fat dairy drink, I think that there is growth potential for this new product.

Also, I think that there should be a little adjustment for the test that they perform. I think they should sample more students. In addition, I think they should try to study the parents' opinion toward this product since for youth segment, normally; their parents do the shopping for them. It is essential for them to get inputs from the parents of the target groups.