Pepsi AM Was Positioned as a Coffee Substitute

question 69

Essay

Pepsi A.M. was positioned as a coffee substitute. In one test market, Pepsi A.M. was introduced onto a university campus. It was both an immense hit and a total failure. The product always sold out of the vending machines, but the consumption of coffee stayed the same and the sale of other Pepsi products declined. In terms of levels of categorization, discuss what created the problem in the test market.

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Definitions:

National Recession

A period of economic decline across a country, usually defined as two consecutive quarters of decreasing gross domestic product (GDP).

Electronic Medical Record System

A digital version of a patient's paper chart, providing real-time, patient-centered records that make information available instantly and securely to authorized users.

Hiring Freeze

A temporary suspension of new hiring in an organization, typically implemented to reduce costs during financial constraints or organizational restructuring.