What can we learn from Pepsi’s branding Big Bang
We’re forever advocating to hospital and health system marketing leaders to look beyond our own industry for ideas. Pepsi’s recent rebranding efforts are another example, though not necessarily for positive reasons. The saga is captured well by an article in the most recent issue of BusinessWeek titled “Blowing up Pepsi.” It tells the tale of Massimo F. d’Amore, the CEO of PepsiCo Americas Beverages, who had been charged by PepsiCo CEO Indra Nooyi with reinvigorating the cola and beverage business in the U.S.
d’Amore’s solution? Rebrand seven separate beverage brands – including the redesign of more than 1,100 different packages (cans, bottles, etc.) – and launch all the new brands by the 2009 Super Bowl. The results have been mixed, to say the least. For example, the redesign of the Tropicana brand packaging raised such a consumer backlash that Nooyi cancelled the redesign (after it had already hit the stores). The new Pepsi logomark, featuring upturned curves meant to reflect smiles and grins, has also received much ridicule. (When the initial presentation of the new logo by branding guru Peter Arnell was leaked on the Internet, many thought the presentation was so ludicrous it had to be a hoax). On the other hand, the new campaign for SoBe Lifewater featuring a dancing lizard and the relaunch of Gatorade as “G” have both received positive reviews. In the end, Pepsi has research showing consumers have increasingly positive reactions to the new brands, and Pepsi has begun gaining market share against Coca-Cola in the U.S. (though how much of the gain can be attributed to the rebranding is of course debatable).
There are many aspects to this story that illustrate how not to approach branding, as well as some innovative strategies for which Pepsi should be applauded. But here’s one aspect that relates well to hospital branding. According to the BusinessWeek story, the rebranding effort was well under way (the new Pepsi logo had been presented, for example), when d’Amore, realized he was falling behind his self-appointed deadline, appointed three senior PepsiCo veterans to help oversee the effort. One of them, Frank Cooper, saw the challenge this way:
“The main charge was simple: It was to get Pepsi into the conversation again within the culture. But the only part of the puzzle clearly in place was Arnell reinventing the Pepsi graphics.”
The group decided what was needed was a new “brand manifesto,” or an expression of the desired Pepsi brand (or what we might call a brand strategy). After creating the new “brand manifesto,” the group was ready to proceed with developing advertising.
The question here seems obvious: how do you decide to create a “brand manifesto” – describing the desired traits and audience of Pepsi – after you’ve redesigned the identities and packaging for all the brands? That’s like drawing up the architectural plans for a house after it’s been built. Wow. No wonder there were some disconnects between the new packaging and consumer audiences.
Unfortunately, this situation happens quite frequently in healthcare. With only an estimated 5-10% of hospitals having an active brand strategy in place, it becomes hard for those developing a new corporate identity to leverage a “manifesto” in creating the new logo. Most simply make do, as often hospitals are reluctant to invest in the time and energy required to develop a brand strategy in the first place.
I recall a conversation with a branding consultant who was new to healthcare, as we discussed the possibility of developing a new brand strategy for a health system. The consultant asked what the current brand strategy was, given we had recently completed the redesign of the system’s corporate identity. When I replied “they don’t have a brand strategy,” the consultant was aghast. In his experience with other industries, this was virtually unheard of.
I simply smiled and said, “welcome to healthcare.”
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