Teaching Note Pepsi Perfect: Back to the Future Marketing Success or Futuristic Fail? Case Overview This case study examines how Pepsi capitalized on a rare event in pop culture history by developing an entire marketing campaign around Pepsi’s key brand placement in the Back to the Future Trilogy. This marketing campaign reached many outlets and built much anticipation for the release of a specialty item on Back to the Future Day. Technical errors intervened with Pepsi’s plan causing them to implement crisis communication tactics to maintain a good reputation among fans. Purpose of Case The purpose of this case is to analyze a unique marketing campaign centered around an exceptional event as well as evaluate the crisis tactics that were employed when an unforeseeable technology glitch occurred. The importance of understanding the audience is a focus within this teaching note as well as the significance of capitalizing on essential events. Lastly, this case is unique in the way in which is provides a phenomenal marketing campaign that still encounters some trouble. This is a perfect way to have students dissect the case for the positives of the company’s actions as well as offer suggestions as to how the students believe they could have operated differently. 1 Application of the Page Principles Tell the Truth. When technical errors erupted and the product went on sale before its time, Pepsi confirmed this via Twitter and stopped the sale in order to preserve what was left for those who were waiting to purchase it. Pepsi did not tell the public how much had gone on sale though; this is not telling the entire truth because many customers might think they still had a good chance of getting the product. Since the company withheld this tiny bit of truth, it could make the public wonder what else it could be not keeping quiet. Prove it with action. After the product went on sale early, Pepsi did stop the sale to save some. After angry Tweets flooded Twitter, Pepsi made a plan to appease the many outraged customers. They would set up an additional limited run and publicize the date, time and way to purchase the product well. In addition to doing this, Pepsi responded to many furious Tweets apologizing and directing them to the next limited run date. The later limited run sold out within eleven minutes and Pepsi shipped that batch on December 26, 2015. Listen to the customer. For the marketing campaign, Pepsi listened to what the customers wanted – Pepsi Perfect. They created this iconic product and made it available to the public to contribute to Back to the Future Day. With regards to the crisis, Pepsi listened to the upset customers as well and took action to ensure they knew they were heard by responding to Tweets and providing another limited run of Pepsi Perfect. Manage for tomorrow. Pepsi did not follow this principle in their marketing campaign because throughout the campaign it was unclear where to actually purchase Pepsi Perfect. The news release and all other media outlets conveyed to the public that they should simply follow Pepsi’s Twitter to know how to proceed. Also, though technical glitches cannot be helped in some instances, it does not seem as if this was even considered as a potential problem. A better initial response and action could have been conducted if there would have been a plan intact. Conduct public relations as if the whole company depends on it. When the crisis occurred, the Tweets that were being issued were not simply about the Pepsi Perfect failed release but actually attacked the company as well. Pepsi knew that this was not as simple as fans being upset and ensured something would be done to alleviate some of the tension that many consumers were feeling with the company. Realize that a company’s true character is expressed by its people. 2 From the beginning of the marketing campaign, statements could be found made my actual people working at Pepsi about how important this campaign was to customers and the company. Throughout the campaign, the marketing had so much positive energy associated with it. Even their official statements and news releases contained quotes from the trilogy. Those from Pepsi definitely seemed to be having fun with this campaign which became contagious to the public as well. Remain calm, patient, and good-humored. Even though fans were outraged and continued to communicate that with all who would listen, Pepsi took responsibility for that glitch and consistently kept an up-beat, positive and fun attitude. The next day when Pepsi announced it had depleted its supply of Pepsi Perfect, the spokesperson used a quote from the trilogy. Pepsi wanted to ensure that fans continued to enjoy Back to the Future Day. Discussion Questions Why do you think the first announcement of Pepsi Perfect was at the New York Comic Con? [It is imperative to know your audience.] What were the benefits and hindrances of only releasing a certain amount of Pepsi Perfect to be sold? What are other ways Pepsi could have used its iconic brand placement in its marketing campaign? What were the advantages and disadvantages of primarily communicating the Pepsi Perfect release via social media? Do you think the ways in which Pepsi responded to the crisis were enough? What else might you do to appease the outraged customers? “Bring back Pepsi Perfect” is a campaign on Change.org. Should Pepsi consider this? 3 Case Study Class Activity Read the Situation Overview together and have the students divide into groups of two or three to read the case and analyze Pepsi’s campaign and response. Ask discussion questions after the students have had enough time to read and have a short analysis. Interactive Class Activity Divide the class into two groups. The first group will be Pepsi’s marketing and public relations team who is responsible for the Pepsi Perfect campaign. The second group is comprised of the Pepsi Perfect customers. Reenact the failed release. The first group should elect a spokesperson to make announcements. The entire first group should work together to decide how they should approach the crisis from beginning until the end and come up with at least one different way in which to handle the situation. The second group should put themselves in the customers’ shoes to see the situation from their point of view. They should consider themselves very big fans of the trilogy and understand that they have been waiting a very long time for this day to come around. When dealing with the public, it is imperative to be able to relate. If time allows, switch the groups so that the students have an opportunity to be both a Pepsi employee and a disgruntled fan and customer. This exercise is an interactive way in which students can practice crisis management skills and try to understand how the consumer feels when these types of mishaps occur. Individual Assignment Use the Institute for Public Relations’ guidelines for how to handle a crisis to analyze Pepsi’s crisis management tactics. (See http://www.instituteforpr.org/crisis-management-and-communications) What communication channel was used? How well was Pepsi’s initial crisis response according to the 8 best practices listed on the website? Which reputation repair strategy most closely resembles Pepsi’s according to those listed on the website? With which crisis type would this situation best identify according to those listed on the website? How should Pepsi respond in its post-crisis phase? 4
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