Pepsi tempts UK youth with direct Stuff appeal

Pepsi is poised to launch Pepsi Stuff, a long-term loyalty strategy, into the UK, with a catalogue offering consumers branded products at discount prices. The scheme has already been successfully launched in the US.

Pepsi is poised to launch Pepsi Stuff, a long-term loyalty

strategy, into the UK, with a catalogue offering consumers branded

products at discount prices. The scheme has already been successfully

launched in the US.



The company will this month send 500,000 catalogues and 30,000 e-mails

to homes from its database.



The campaign is a culmination of Pepsi UK’s drive to gather consumer

data and generate brand loyalty among young consumers in the face of

fierce competition from Coca-Cola and Virgin Cola (see table).



Data collection began in earnest with the Spice Girls ’Generation Next’

promotion in May 1997 and included a Star Wars offer in July this

year.



The Pepsi Stuff catalogue offers products from Sony minidiscs to

Technics turntables at up to 40% less than their recommended retail

price in return for a specified number of specially coloured blue or red

ring-pulls. The catalogue features images of ’discount’ Pepsi-branded

shops, designed to attract youngsters.



The campaign, designed and developed by Claydon Heeley International,

ties in with Pepsi’s global strategy tagline ’Ask For More’, which was

launched in February. The positioning suggests Pepsi drinkers get more

out of life.



A spokeswoman for Britvic Soft Drinks said: ’The campaign targets a

youth market, and specifically a core audience of 17-year-old

males.’



Andrew Marsden, marketing director at Britvic Soft Drinks, added: ’This

is not a short-term campaign - the blue ring-pulls will be on the cans

forever.



’We are extending the Pepsi concept of exclusive access and have gone

out of our way to give consumers good deals and genuine rewards for

loyalty.’



The follow-up to Pepsi Stuff, which has an application deadline of

February 29, 2000, is expected to be a further, updated catalogue.



A similar project in the US boosted the company’s market share by a full

one per cent, a success the company wants to emulate in the UK.



Cola wars

Company           Q2 1998     Q2 1999

1 Coca-Cola         15.9%       30.6%

2 Pepsi             16.4%       13.4%

3 Virgin Cola        7.9%        7.4%

Household penetration

Source: Taylor Nelson



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