Avoiding Crystal Pepsi's Failure Through Better Design and Decision-Making
One of the most significant product disasters throughout the entire history of the beverage
business is typically perceived as Crystal Pepsi, which PepsiCo debuted in the mid-1990s. In
spite of broad promoting endeavors, the product was dropped after a brief timeframe. This case
study researches how the failure of Crystal Pepsi might have been avoided with a more
prominent plan and better-informed decision-making.
Market research and Consumer insights
The lack of client comprehension during the introduction of Crystal Pepsi was perhaps the most
obvious problem. PepsiCo made customers' desired assumption of a reasonable, caffeine-free
cola without doing in-depth market research to support this assertion. PepsiCo could have spent
more money on market research and client experiences to forestall making such a mistake. They
might have utilized strategies like focus groups, surveys, and taste testing, for example, to decide
client inclinations and better match Crystal Pepsi with market needs.
Supply chain Effectiveness:
Crystal Pepsi's unusual formulation showed problems related to production and required a
particular manufacturing technique. Higher manufacturing expenses and supply chain failures
were the aftereffects of these difficulties. To solve this, prior to pushing ahead with
commercialization, PepsiCo ought to have assessed the viability and financial consequences of
the plan (Chopra and Meindl.,2016).
PepsiCo might have diminished manufacturing costs and increased profitability by smoothing
out the supply chain to meet Crystal Pepsi's specific needs.
Positioning and Branding
Crystal Pepsi's positioning and branding were out of step with customer assumptions. The
transparent cola was considered more to be a curiosity than a genuine substitute for regular colas.
To address this, PepsiCo needs to have formulated a convincing brand strategy that makes clients
mindful of the distinctive value proposition of Crystal Pepsi (Keller,.2013).
Test Market and Guiding:
PepsiCo made an error by concluding to avoid test marketing in specific geographic areas.
Before a full-scale launch, organizations might survey client responses and make the expected
enhancements by leading test markets. Testing Crystal Pepsi in a couple of regions would have
permitted PepsiCo to get helpful feedback and insights, allowing them to improve the product
and promote the plan as needed (Jay, E., Hughes, G., & Haley, I). It would have reduced the risk
of Crystal Pepsi.
Flexibility and Adaptability
Even after fewer sales highlighted the requirement for modifications, PepsiCo demanded keeping
with the Crystal Pepsi idea rather it ought to have been more open to improving its products or
advertising strategies in response to client input (Christopher,.2016).
Conclusion
Various things contributed to Crystal Pepsi's failure, including poor market research, insufficient
supply chains, branding issues, a lack of testing, and an inability to adapt. PepsiCo might have
had the option to forestall this mistake by applying ideas of operations management and supply
chain management. The destiny of Crystal Pepsi might have been changed from an unsuccessful
product to a successful product in the beverage industry with a more thorough design effort and a
willingness to make educated judgments in view of market input.
References
Chopra, S., & Meindl, P. (2016). Supply Chain Management. Strategy, Planning, and
Operation (6th ed.). Pearson
https://www.researchgate.net/publication/248796177_Supply_Chain_Management_Strate
gy
Keller, K. (2013). Strategic Brand Management: Building Measuring, and Managing
Brand Equity. Global Edition (4th ed.). Pearson Education.
Jay, E., Hughes, G., & Haley, I. Test Marketing in New Product Development. Harvard
Business Review. https://hbr.org/1976/05/test-marketing-in-new-product-development
Christopher, M. (2016) Logistics and Supply Chain Management. 5th Edition, Pearson, London.