PepsiCo's Social Media Crisis: Lessons Learned (2024)

Added on 2023-06-07

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Network and social Media
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P a g e | 1
PepsiCo, Inc. is an American based multinational food, snack, and beverage corporation. The
headquarters of the company are located in the New York. The company has found interested
in the marketing, promoting its products and services in the market by using the campaigns
and another way in the market. PepsiCo has found to promote its products and service on the
social media in any of the different ways (Forbes, 2017). The company was found to be
unique in making the new campaigns in order to get the publicity in the market. However,
sometimes it may have the negative effect on the company and its image in the market. One
of the incidents has been discussed below which was related to the social media crisis which
Pepsi has to face in the market (Semrush, 2017).
In the year 2017, one of the biggest scandals has been identified in the global market. Pepsi
was found to defend in the global market with a message f unity, peace, and understanding.
The company was found as the defaulter in the market due to providing the wrong
advertisem*nts in the market. The intention of Pepsi was to get the publicity in the market but
not have the belief to face the crisis on the social media. However, the interpretation of the
advertisem*nt and campaign was made in the wrong way. For this, the company has to pay a
very high amount in the market in the form of loss of sale, a decrease of reputation in the
market and spoiled image in the social media (Semrush, 2017).
The scandal is nothing but the company has presented the advertisem*nt in the market related
to its new campaign. Pepsi has presented a new advertisem*nt campaign featuring the mega-
celebrity Kendall Jenner. In this campaign, Kendall Jenner through away the Pepsi can to the
camera staff and run away from there and join the protest, which is running on the protest.
This video got viral on youtube. In one day, the video got the 1.6 million views (Forbes,
2017). The most amazing event was recorded in the video. Kendall gives the can in the hands
of the police officer, who takes a sip and smiles to his partners (Rutsaert et al., 2013).
The video and campaign was most advertising in the market. Video get the publicity too in
youtube and other channels. The campaign and video being promoted in the social media
market get advertisem*nt in the newspapers and youtube. This advertisem*nt was given as
the best example of white and economic privilege. This was judged for trivializing
demonstrations and serious social issues. Several memes and jokes have viral related to the
Pepsi and Kendall acts over the social media. The social media crisis has begun. This affects
the market value of the company and its reputation too in the market (Qualman, 2010).

P a g e | 2
It was necessary to shut the communication channel in the market so that the information
must not be sent to a high level in the market. However, Company fails to do so as the
information and video get viral in the short period within 48 hours with a million views and
like on them. This spoils the image of the company, which hampers the growth potential of
the company. The tipping point in the case is only the video that gets viral through the social
media and gets fire in the mind of the individual. This little thing has made the great
distinction in the market (Fearn-Banks, 2016). The difference came in the market after the
video get viral will hamper the image of the company in the minds of the consumers. This
will be considered a tipping or turning point in the life of the company. a little things make a
big difference in the image and sales of the company. The company get affected not only in
the economic terms but also gets affected in the social market also. The historical image that
the company has managed during its initial years was spoiled in the market due to this small
incident (The PHA Group, 2014).
The company was trying to manage the crisis by introducing and indulging the new aspects
of the market. Pepsi Company has tried many different ways to improve the image of
company on social media sites but gets fails to do so. The company was targeted by the social
media. The company tries to manage the affairs of the company so that image can be
improved and an increase in the market. Not only the market image but also market value
should also be enhanced. This should be improved in the eyes of its stakeholders and
shareholders. After all this, Pepsi managed to delete the video from its official sites and on
the social media channels (Berthon, Pitt, Plangger and Shapiro, 2012).
The Pepsi made statements that the Pepsi was trying to project a global message of unity,
peace, and understanding, but fails to do so in this campaign. The company promised to do so
in the near future. At last, the company accepts that they have missed the campaign
objectives and ultimate goals and they are found guilty and apologize for the same. Company
conveys its message on the social media that “we did not intend to make light of any serious
issue. We are removing the content and material available on the social media and halting any
further rollout. We also feel guilty for putting the Kendall Jenner in this position (Forbes,
It has been learned from the case that the Pepsi has to pay the high price for this small
incident. When the company is found struggling with the audience in the market, it has
faced such situation, which brought down its image too low in the market. The company

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