Case Study:
Marketing to Teens Worldwide via Music
Knowing that teenagers in many nations have similar attitudes and tastes, the world’s two largest soft drink companies see this group of consumers as an extremely important target market with long-term profit potential. Both Coca-Cola and PepsiCo know that not only do their soft drinks have to taste good, their marketing has to be relevant to capture teens’ attention and keep them engaged with the brands as well. Both are using music as part of their strategy for reaching out to teens through their shared interest in new music and bands. Although Coca-Cola and PepsiCo have long been identified with music—Coca-Cola on TV with American Idol, PepsiCo with commercials starring legendary performers like Michael Jackson—these new teen campaigns focus on cutting-edge music and involve more interactivity than ever before. “The number one passion point for teens is music,” explains a Coca-Cola senior vice president. During the 2010 World Cup soccer tournament, for example, the company scored a global hit when its TV ads showed the Somali rapper K’naan performing the brand-related “Flag Wavin’” song. The song was released commercially and quickly hit the top of the charts in 18 nations. During another campaign, Coca-Cola invited the popular band Maroon 5 to create a new song based on suggestions and comments submitted by teens via Facebook and Twitter during an intense 24-hour jam session—all streamed live online to a global audience. For the 2012 Olympics in London, Coca-Cola continued the focus on music with its “Move to the Beat” campaign. A new song written expressly for this campaign, incorporating sports sounds and performed by U.K. singer Katy B, was released before the games began and was featured in TV ads, online ads, mobile marketing, social media posts, and other global marketing activities. “We can’t afford not to talk to teens,” says a Coca-Cola official. “You can’t think, ‘Teens already know us,’ and skip a couple of years. Every six years there’s a new population of teens in the world.” Like Coca-Cola, PepsiCo uses music in marketing to attract teens’ attention and to demonstrate its hip factor. In addition to global campaigns featuring music enjoyed by teens in many nations, PepsiCo tailors some marketing events to the musical tastes of teens in specific regions. It has sponsored new-talent festivals in India, for instance, and major rock concerts in Argentina. Knowing that the Grammy Awards are popular among music-loving teens, Pepsi is one of the award program’s sponsors. Pepsi’s association with the reality TV singing competition, the X Factor, is a high-profile way to associate the brand with up-and-coming musical artists who may, with a dash of luck and a lot of talent, blossom into stars who become wildly popular with teen audiences. PepsiCo is also using social media as a pivotal part of its international marketing to teenagers. During its recent “Summer Time Is Pepsi Time” TV and online campaign, the company pictured parks, beaches, and pools from around the world. Consumers who checked in via foursquare at any three of the sites received special badges and were entered into a sweepstakes for the chance to win prizes. These ads still draw viewers on YouTube, where teens and everybody else can enjoy and share them again and again.
Q1. What long-term results do you think Coca-Cola and PepsiCo hope to achieve by investing heavily in marketing to teens around the world?
Q2. What are the marketing advantages and disadvantages of associating a soft drink brand such as Coca-Cola or PepsiCo with musical groups that are just beginning their careers? Do you agree with this strategy? Explain.
Q3. From a consumer behavior perspective, why would these two companies emphasize new music and emerging performers in their ads, rather than wellknown songs and groups?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.