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:

Porter's Five Forces Model

A framework for analyzing a business's competitive environment, focusing on five key forces that influence its ability to serve customers and turn a profit.

Substitute Products

Products that serve as alternatives to one another in the market, satisfying similar needs or wants of consumers.