Pepsi's Brilliant Marketing Plan

Recently the president of Pepsi Co., Indra Nooyi made the bold move to try and separate Pepsi Co from the US foreign policy for its dwindling foreign sales. Faced with new islamic competitors in areas from Britian to Kuwait and anti-american sentiment everywhere, Pepsi needs to find a way to compete. Given that Coca Cola is forever connected with the United States in the same way McDonalds is, Pepsi has an opportunity to capture foreign sales that Coca Cola loses. Pepsi merely has to take a stand against the US.

Apparently in her speech, Nooyi compared the US to the middle finger that is being shown to the world because of all the evil that is perpetrated by our nation. It has not yet picked up a lot of air time, but I suspect that it will. As an attempt to preempt the backlash, Nooyi posted this message on pepsico.com:

A message from PepsiCo's President & CFO, Indra Nooyi
Following my remarks to the graduating class of Columbia University’s Business School in New York City, I have come to realize that my words and examples about America unintentionally depicted our country negatively and hurt people.

I appreciate the honest comments that have been shared with me since then, and am deeply sorry for offending anyone. I love America unshakably – without hesitation – and am extremely grateful for the opportunities and support our great nation has always provided me.

Over the years I’ve witnessed and advised others how a thoughtless gesture or comment can hurt good, caring people. Regrettably, I’ve proven my own point. Please accept my sincere apologies.

– Indra Nooyi

It will be interesting to see if the gamble works for Pepsi. Will they gain more foreign sales than they lose in the United States? Will foreign purchasers buy the obvious marketing ploy in greater numbers than Americans condemn the ploy?

My bet is that this will be a total failure that will cripple Pepsi for the next two years.