Pepsi and Coca-Cola today have come a long way from just using catching jingles and songs in their ads and hiring pop stars as their spoke person. Today, these two organization are running a full fledge music campaign that is specially focused on the young consumers. Apart from hiring most successful pop stars as ambassadors, these organizations have also ventured in to partnership with organizations like Twitter, Amazon, Billboard (with Pepsi), Spotify, YouTube, I-tunes (with Coca Cola). Sponsoring talent hunt shows, signing deals with music labels to help launch new artist and brand albums are the major acts that took place in the recent years (Dyson, 2012). This newfound interest towards music to attract teens by these organization and their steps for achievement of these targets are the reason leading to analyses of this situation.
The key issues, this case write up tends to address is:
• Why use music as the means of marketing?
• What is the reason for teens being the targeted audience?
• What does the company plans to achieve through this marketing strategy?
• What are the advantages and disadvantages of brand association with new artists?
• What would be the consumer perspective on companies’ emphasis on using new music and artist in their ads? Analysis Long Term Results of Investing in Teen Market It is a general perception that believes that youngsters are our future, and thus proper investments should be made in them so that the society can have a bright and strong future. This notion is usually associated while planning budget and developing strategies for teens by the government. However, in recent times, it seems as if soda brands like Pepsi and Coca-Cola have adopted this strategy to make the future of their company brighter and stronger. According to the National Health and Nutrition Examination Survey, 2005–2008 “teenagers and young adults consume more sugar drinks than other age groups” (NCHS Data Brief, 2011), this data coupled with the soda brand estimated that “By 2020, one-third of the world's population, or 2.5 billion people, will be younger than 18. And in the next 10 years, teens in the U.S. will number 31 million” (NCHS Data Brief, 2011). All of this factual data and estimation is enough for these soda brands to target teenagers as their main audience. Recently, Coca-Cola revealed its 2020 vision as per which the company aims to “increase its revenue to $200 billion and increase its serving to 3 billion by 2020”. All of these endeavours by these giant soda brands to target teens are to achieve its long-term strategic plans of success (Zmuda, 2011). These brands are aware that a habit developed in early teens will form the part of a person’s personality almost to the life of that individual. Therefore, if a teenager develops their soda brand as his habit than almost in 90% of the case, the company will be free from incurring marketing expense on that individual and his peers after they cross the threshold of 19 years. Therefore, these tactics of focusing teens as their target audience is actually a very long-term benefit bearing strategy, which will help these organizations to achieve their targets. Advantages and Disadvantages of Associating Brand with Emerging Musical Groups Associating the brand with top-notch individuals of sports, music, and movies who possess mass appeal and huge fan following had been the marketing strategy of Pepsi and Coca-Cola. This had always been a sure shot success formula. Even today, both the brands are