E-Poll Market Research Blog

Pepsi Looks to Simon Cowell to Challenge Coke

Pepsi and Coke have been locked in a fierce battle for cola supremacy for decades.  Coming off a period of declining sales, with industry data showing both Coke and Diet Coke now surpassing Pepsi, Pepsi recently opened a new front in the cola wars with its sponsorship of The X Factor.  Starring Simon Cowell, The X-Factor will challenge Cowell’s former program, American Idol, and its long-time promotional partner Coke.

In these overlapping rivalries Pepsi seems to have found an ideal situation. The contest between American Idol and The X Factor mimics the competition between the two soft drink companies.  Coke and American Idol are the stalwart brands with years of market leadership, while Pepsi and the upstart newcomer The X Factor look to take down the establishment.   What can Simon Cowell and The X Factor offer to Pepsi in their battle with Coke?

Cowell’s Attribute Scores

Pepsi has touted itself as “the choice of a new generation” with the intention of focusing on younger audiences and implying that Coke is tired and old.  Pepsi also gained attention with its aggressive “Pepsi Challenge” calling out Coke as having inferior taste.

According to E-Score Celebrity data, Cowell is considered Aggressive (31%), Confident (35%) and Influential (28%).   A risk for Pepsi is that Cowell is also perceived as Rude (42%) and Mean (39%).    However, Cowell’s strong personality and attitude compliment Pepsi’s interest in reigniting the cola wars and taking an aggressive position.

Cowell’s contribution to the Pepsi brand may serve as a model for other X Factor sponsors demonstrating how his uniqueness can supplement a brand’s directive.  E-Score Celebrity can demonstrate how a personality can aid in a new brand strategy.

Gatorade’s G Men – Part 2

In 2009 Gatorade changed its logo in an attempt to refresh and reposition its brand. In March of 2010 we used E-Score Brand to compare the old logo against their new G logo.

The research revealed a substantial difference in logo awareness with the new logo scoring 48 points lower than the previous version.  A year later we decided to revisit Gatorade to see if a year of marketing and promotions has improved the awareness of the G logo.

Gatorade’s Brand Name vs. Image Awareness

From January 2010 to February 2011, the G logo saw an increased logo awareness of just 9 points (34% vs. 43%), falling well short of the 82% awareness the original logo garnered.  Name awareness of Gatorade remained relatively static over that same period with a score of 80% to 79%.  Arguably Gatorade’s closest competitor Powerade, which holds a much smaller market share, earns a logo awareness score stronger than Gatorade’s (46% vs. 43%).

Consumer Comments on Gatorade

According to company officials, Gatorade is now focusing on younger athletes and active adults with a message of functional benefits for serious athletes.  Two data points suggest that they may be making headway with this strategy.

In February 2011, 59% of respondents ages 13-24 showed awareness of the G logo compared to just 43% for all respondents.  When asked “What is the first thought that comes to mind when you see the name of the brand,” the same age group also showed an 11 point increase in mentions of “sport” when compared to 2010.

Source: E-Score Brand, Respondents asked “What is the first thought that comes to mind when you see the name of the brand?”, Combined responses greater than 100%, responses filtered by ages 13-24

The research suggests that Gatorade may have a long road to return to its previous awareness’ score but is on the right track to reposition the product with younger consumers as a performance enhancer and not simply a sugary beverage.

E-Score Brand’s monthly fielding can track changes in a brand’s logo, name and how receptive the public is to a new strategy.