FACULTY OF LIFE SCIENCE

FOOD PRODUCT DEVELOPMENT

ASSIGNMENT NO 1
GROUP NO 6
SUBMIITTED TO: SIR WALEED SULTAN
TOPIC: WHY PEPSI AM FLOPPED?
SUBMITTED BY:
MUHAMMAD ZEESHAN L1F20BSFT0056
AHMER SHAHID L1F20BSFT0066
AIMAN IKRAM L1F20BSFT0041
SYEDA DARAKHSHAN ALI L1F20BSFT0074
ABEER ZULFIQAR L1F20BSFT0077
MINAHIL IMTIAZ L1F20BSFT0060

TABLE OF CONTENTS:
1. Failure of Food products…………………………………………….........1
2. Wrong price……………………………….……………………………….2
3. Poor Marketing efforts …………………………………………………...3
4. Pepsi A.M………………………………………………………………......4
5. Description…………………………………………………………………5
6. History……………………………………………………….……………..6
7. Wake Up the World” Campaign …………………………………………7
8. Overview of Pepsi A.M……………………………………………………8
9. Ingredients & Nutritional Value………………………………………….9
10. Main Ingredients……………………………………………………………………….10
11.What Does Pepsi A.M. Taste Like……………………………………….11
12.Marketing Campaigns & Promotional Activities……………………….12
13.Packaging design of Pepsi
Am…………………………………………….13
14.Special promotions and
giveaways……………………………………….14
15.Reasons Pepsi AM fail in market…………………………………………
15
16.Test before launch…………………………………………………………
16
17.Tips for choosing the right time to launch your product……………….17
18.Learn from previous
failures……………………………………………..18
19.Poor marketing and sales
techniques…………………………………….19
20.Facing competition……………………………………………….……….20
21.Conclusion…………………………………………………………………21
1, Failure of Food Products
Great products fail because customers do not recognize the value that they create. Today, we
have unprecedented insight into how customers evaluate new products. Yet many firms focus
solely on creating value, without regard to how customers recognize innovations and evaluate
new products.
A lot of great new products fail, and the firms often wonder why. They were careful to listen to
their customers, yet the products still failed. This is not a rare occurrence. A recent study of
almost 9,000 new products that achieved broad distribution at a national retailer revealed that
just 40% of them were still sold three years later.
Most firms focus on customer needs, they do not think hard enough about how customers decide
what to purchase. We now have ample insight into how customers evaluate new products. Yet
firms focus solely on creating value, without regard to whether customers will recognize this
value.
To decide what to buy, customers need to know what products are available and how their
features vary. Whether you are an airline choosing which aircraft to purchase, a graduate
choosing your first car, or a parent buying diapers for your infant, there are only two ways you
can collect this information.
Approximately 95% of all new food products fail, which may not be for the reasons people think.
Often, a person produces a delicious food option. Still, they fail to consider other factors
affecting their profitability, use poor marketing efforts or fail to keep their company agile.

2.Wrong Price
People often produce a viable food product, but the cost of producing that food is more than the
consumer is willing to pay. This often happens when a company introduces new food without
identifying its proper target audience. Therefore, the first thing that needs to happen when a
company is offering a food product to the public is to determine what price they are willing to
pay for that food.

Getting an accurate assessment of this information requires you to take the food and go out in
public and let them sample it, then directly ask them what price they would be willing to pay for
that food. In some cases, the company creating the product will need to adapt it such that a
different target audience can be engaged – ideally one willing to pay more for the product.

When you ask the question “why do new food products fail?,” the company must take a second
factor into consideration. They have failed to identify the right vendors to supply the ingredients
needed to produce the food. The answer to this problem is to do market research. You will want
to identify vendors and specify their arrangements. See what they are willing to offer if they are
the sole supplier. In some cases, new food companies get locked into long-term contracts that are
not in their favor through lack of knowledge, so the food company may opt to hire expertise to
help them identify the right vendors.

3.Poor Marketing Efforts

New food companies often fall victim to poor marketing. The first step in solving this issue is to
create a brand identity that connects with the target audience. Everyone at the company must be
able to enunciate that personality. All decisions made around the food, like its packaging and
advertising efforts, must reflect that identity. Getting this right from the beginning also helps
successful food companies identify opportunities that are right for them and know when to
disregard other options.

One wonderful way to ensure everyone is on board with the brand’s identity is to host frequent
in-house networking events. This allows those in C Level Execs to meet the marketing team and
vice versa. Then, when questions arise, the person knows who to call to solve the issue. The
closer a new team is, the better it functions.

It is also essential that the company start networking with those in the industry who can move the
product into the appropriate retail venues. When the marketing team does not already have
contact with these people, it can be challenging to build them. While cold calling and attending
trade shows can help, working with a food broker is often the best solution because they will
have a set of established contacts

There are often multiple reasons for failure, but here are 8 common reasons:

1. Lack of understanding of the target market and customer needs. If you do not know
who your product is for and what customers need, your product is unlikely to succeed.
2. Poor product design and quality. If your product is poorly designed or low quality, it is
unlikely to attract and retain customers.
3. Inadequate market research and testing. If you do not thoroughly research and test
your product before launching it, you may miss key insights and opportunities.
4. Misaligned pricing and value. If your product is priced too high or too low, it may not
provide the right value to customers.
5. Difficult to understand or use. If you create something difficult to understand or use,
you are increasing your odds of failure.
6. Poor product-market fit. If your product does not fit the needs and preferences of your
target market, it may struggle to gain traction.
7. Lack of innovation and differentiation. If your product is like existing products and
does not offer unique or compelling advantages, it may not stand out and succeed.
8. Mismanagement of risks and challenges. If you do not effectively manage and mitigate
risks and challenges, your product may encounter unexpected problems and setbacks.

Some Examples of Failed Product:

Some food products that are failed in the market are:

 Purple and green ketchup

 Colgate Lasagna
 Sun Chips
 Life Savers Soda

 Tropicana Orange Juice

 New Coke
 Pepsi A.M.
4 Pepsi A.M.:
Pepsi A.M. was a Pepsi cola flavor first test-marketed in
sporadic regions of the United States in 1989. By 1990, it was
discontinued due to low sales, lasting for an entire year of
production.

5.Description
Pepsi A.M. was a variant of Pepsi. Its flavor was the same as
regular Pepsi but added 25% more caffeine. There was also a
Diet variant that had one calorie.

6.History
In August 1989, PepsiCo first began to test market Pepsi A.M. alongside its Diet variant in
sporadic regions of the United States aimed at coffee drinkers.
It was then later reported that Pepsi A.M. was getting test-marketed in some regions of massive
cities. These cities confirmed are Cedar Falls, Iowa, Waterloo, Iowa, and Fort Wayne, Indiana.
Others unconfirmed are Pittsburgh, New York, and Phoenix. The unconfirmed locations are
unknown from this test market release.
Shortly after its introduction, a year of production, Pepsi A.M. and its Diet variation ceased
production in October 1990 due to low sales.
7.Wake Up the World” Campaign
When Pepsi decided to bring back Pepsi A.M in 2014, they launched a clever marketing
campaign called “Wake Up the World”. The campaign aimed to position Pepsi A.M as a
morning beverage alternative to coffee and featured television commercials and print ads that
highlighted people drinking Pepsi A.M and feeling energized and ready to tackle their day. The
campaign was a success and helped reintroduce Pepsi A.M to a new generation of soda drinkers.

Are you a morning person who can’t start your day without a jolt of caffeine? Then you should
know that Pepsi A.M. has the refreshing taste of Pepsi with a little extra caffeine kick to help
jumpstart the day.
From its humble beginnings as a limited edition soda to its current status as a beloved morning
pick-me-up, we’ll learn the story behind Pepsi A.M.

8.Overview of Pepsi A.M.

Pepsi A.M. was first introduced in the early 1990s as a limited-edition soda. It was specifically
marketed toward early-morning soda drinkers who wanted a little extra boost to get their day
started. The drink contained more caffeine than regular Pepsi, as well as a blend of other
ingredients that were meant to give consumers a sense of wakefulness and alertness.
The drink was only available for a short period before it was discontinued. However, it gained a
cult following among early-morning soda drinkers who loved the taste and the extra caffeine
kick. Pepsi took notice of the drink’s popularity and decided to bring it back in 2014 as a
permanent addition to its product line.
Pepsi A.M. is manufactured by PepsiCo, one of the largest food and beverage companies in the
world. The drink is available in both cans and bottles and can be found in most grocery stores
and convenience stores across the United States. It is also available in select international
markets.
So, what is it about Pepsi A.M. that makes it so popular among soda drinkers? For starters, the
drink has a unique and refreshing taste that sets it apart from other sodas. The addition of extra
caffeine also makes it a great option. But beyond the taste and the caffeine content, Pepsi A.M.
has also managed to gain popularity due to its clever marketing.
The drink is marketed as a morning pick-me-up, making it a great alternative to coffee for those
who prefer the taste of soda. Additionally, the drink’s limited-edition status in the 90s gave it an
air of exclusivity and made it a must-try for soda enthusiasts.

9.Ingredients & Nutritional Value

Pepsi A.M. is a unique morning beverage that’s packed with energy-boosting ingredients. It’s
made with the same great taste as regular Pepsi but contains a special blend of caffeine, vitamins,
and other nutrients that are designed to help you stay energized and focused throughout your
morning routine.

10.Main Ingredients
The main ingredients are carbonated water, high fructose corn syrup, caramel color, natural and
artificial flavors, phosphoric acid, caffeine, citric acid, and potassium benzoate. Additionally, it’s
fortified with vitamins such as vitamin E, B3, B6, and B12, making it a good source of these
essential nutrients.

High Fructose Corn syrup:

Like most soda beverages, it contains high fructose corn syrup, which is a type of sugar that’s
been linked to various health issues when consumed in excess. However, as a morning beverage,
Pepsi A.M. is best enjoyed in moderation as part of a balanced breakfast.

Caffeine:
One important thing to note is that Pepsi A.M. contains caffeine, which is a natural stimulant that
can increase alertness and improve mental focus. Each can of Pepsi A.M. contains around 92
milligrams of caffeine, which is roughly equivalent to a cup of coffee. While caffeine can be
beneficial in moderation, it’s important to be mindful of your overall caffeine intake throughout
the day.

Calories:
In terms of nutritional value, Pepsi A.M contains 150 calories per can, which is a relatively
moderate amount for a soda beverage. It also has no fat or protein and is relatively low in
sodium, with only 30 milligrams per can.

11.What Does Pepsi A.M. Taste Like?

Pepsi A.M. has a unique and refreshing taste that sets it apart from other soft drinks. It has a
slightly sweet and citrusy flavor, with a hint of lime and a touch of vanilla. The flavor profile is
well-balanced, with just the right amount of sweetness and fizz.

Pepsi A.M. is similar to other citrus-based sodas, like Mountain Dew or Sprite, but with a more
subtle and sophisticated flavor. It’s also a great alternative to traditional morning beverages
like coffee or tea, as it provides a refreshing burst of energy without the jitters.

One of the great things about the taste of Pepsi A.M. is that it’s versatile and can be enjoyed in a
variety of settings.

12.Marketing Campaigns & Promotional Activities

Pepsi A.M. has certainly had its fair share of clever marketing campaigns and promotional
efforts over the years, as already mentioned above. Let’s take a look at some of the most
memorable marketing campaigns and promotions that have helped make Pepsi A.M. a household
name.

Limited-Edition Pepsi A.M.

The original release of Pepsi A.M. in the early 1990s was a limited edition run that was
specifically marketed toward early-morning soda drinkers. The drink’s packaging featured a
bright and colorful design that was eye-catching and memorable

Pepsi also ran television commercials that featured people waking up in the morning and
reaching for a can of Pepsi A.M. instead of coffee. The limited-edition status of the drink gave it
an air of exclusivity and made it a must-try for soda enthusiasts.
“Wake Up the World” Campaign

When Pepsi decided to bring back Pepsi A.M in 2014, they launched a clever marketing
campaign called “Wake Up the World”. The campaign aimed to position Pepsi A.M as a
morning beverage alternative to coffee and featured television commercials and print ads that
showcased people drinking Pepsi A.M and feeling energized and ready to tackle their day. The
campaign was a success and helped reintroduce Pepsi A.M to a new generation of soda drinkers.

Collaborations with Celebrities and Influencers

Over the years, Pepsi has also collaborated with celebrities and influencers to help promote Pepsi
A.M. In 2016, they teamed up with actress and singer Bella Thorne for a social media campaign
that encouraged fans to share their morning routines and how Pepsi A.M. helped them get
started. The campaign was a hit and helped raise awareness of Pepsi A.M among a younger
audience.

Special Promotions and Giveaways

Pepsi has also run special promotions and giveaways to help promote Pepsi A.M. In 2018, they
partnered with the ride-sharing service Lyft to offer riders a free can of Pepsi A.M. during their
morning commute. The promotion was a hit and helped introduce Pepsi A.M. to a new audience.
13.Packaging design of Pepsi Am:
The packaging design of Pepsi A.M is eye-catching and vibrant, just like the drink itself. The
logo features the iconic Pepsi globe, with the word “A.M” written in bold, capital letters
underneath. The font used for the “A.M.” is slightly different from the classic Pepsi font, which
adds a touch of uniqueness to the design.
The colors used on the packaging are primarily blue and white, which gives the can a clean and
refreshing look. The blue color is a nod to the classic Pepsi color scheme, while the white
provides a crisp contrast that helps the logo and other design elements stand out.
One interesting feature of the Pepsi A.M. can is the use of graphics and text to emphasize the
drink’s morning focus. For example, there’s a graphic of a sunrise on the side of the can, which
reinforces the idea that this is a drink to be enjoyed in the morning. The text on the page can also
include phrases like “Rise and Shine” and “Morning Energy. “
Another notable aspect of the packaging design is the use of “slim” cans. These cans are taller
and narrower than traditional soda cans, which gives them a sleek and modern look. The slim
design also makes them easier to hold and store, which is a nice touch for people who are always
on the go.

In terms of nutritional value, Pepsi A.M contains 150 calories per can, which is a relatively
moderate amount for a soda beverage. It also has no fat or protein and is relatively low in
sodium, with only 30 milligrams per can as these are labelled on the can

14.Special promotions and giveaways:

Pepsi’s marketing strategy utilizes celebrity endorsements and company sponsorships to promote
their product. In fact, Pepsi has exclusive rights to the Superbowl half-time show, which brings
in about 100 million viewers each year.
Pepsi has also run special promotions and giveaways to help promote Pepsi A.M. In 2018, they
partnered with the ride-sharing service Lyft to offer riders a free can of Pepsi A.M. during their
morning commute. The promotion was a hit and helped introduce Pepsi A.M. to a new audience.
The company often uses humor and storytelling to appeal to its target audience. For example,
one of PepsiCo’s most successful advertising campaigns was the “Pepsi Generation” campaign,
which used music, dance, and celebrity endorsements to create a sense of fun and excitement
around the brand.
As Pepsi uses various methods to Promote its products, mostly it is through advertisements.
Pepsi advertises on social media:
Pepsi is also active on social media, and it uses this platform to connect with consumers and
promote its products. The brand has a large following on platforms like Facebook, Twitter, and
Instagram, and it uses these platforms to share news about its products, run contests, and engage
with consumers.

15.What are the reasons Pepsi AM fail in market and why people not like
them?
There could be several reasons why Pepsi AM didn’t do well in the market. Some people might
not have liked the taste or found it too different from regular Pepsi. Additionally, the concept of
a morning-specific soda might not have resonated with consumers. It’s important for products to
meet the preferences and needs of the target audience. Some reasons why Pepsi AM may have
failed in the market could be because people might prefer other beverages for their morning
routine, such as coffee or tea. Additionally, the taste of Pepsi AM might not have appealed to
everyone. It’s also possible that the marketing and promotion of Pepsi AM didn’t effectively
communicate its unique value to consumers. Another factor that could have contributed to the
failure of Pepsi AM is the competition in the market. There are already established and popular
morning beverages like energy drinks, juices, and traditional breakfast options that people are
accustomed to. Introducing a new beverage specifically for mornings might have been a
challenge in terms of breaking into the market and capturing consumer interest. It’s essential for
products to meet the needs and preferences of consumers to succeed. Another reason why Pepsi
AM might not have been well-received could be the lack of awareness and availability. If people
weren’t aware that Pepsi AM existed or if it wasn’t easily accessible in stores or cafes, it could
have hindered its popularity. Effective marketing and distribution are key to getting a product
into the hands of consumers. Sometimes, even a fantastic product needs the right exposure. It’s
always interesting to analyze the factors that contribute to the success or failure of a product.
While we may not have all the exact reasons for why Pepsi AM didn’t do well in the market, it’s
likely a combination of various factors like taste preferences, competition, timing, and
marketing. Each of these elements plays a significant role in shaping consumer behavior and
product success.

16.Test before launch

 Before launching any new product to the market, company should conduct extensive
testing.
 This could include holding focus groups, running sampling experiments, and getting
feedback from potential clients.
 They can then assess the product's appeal and make any necessary changes.
17.Tips for choosing the right time to launch your product
 You don’t always have to be the first out of the
gate.
 You can learn from the mistakes of your
predecessors and fine-tune your product
accordingly.
 What matters most is ensuring you have a great
product ready to go and people want it.
 Also, ensure your launch conditions are
favorable. Will you be able to meet a spike in
demand? Can customers easily make purchases
without glitches? Are your suppliers able to deliver? Is your entire team ready to give
customers the best possible experience?

18.Learn from previous failures

 It is critical for any beverage company to learn
from the past failure and use it as a springboard
for future success.
 A detailed investigation of what went wrong will
provide valuable insights for future product
development.
 Company can avoid repeating similar mistakes
and improve their overall product strategy by
recognizing the core causes of failure.
19.Poor marketing and sales techniques

 You can have a fantastic product that no one buys

because no one knows about it.
 Products may not reach the relevant audiences or
generate enough interest in potential buyers if the
proper marketing and sales strategies are not
used.
 If you despise marketing, engage a marketer and
a salesperson to help you.
 To get your product in front of the right people at
the right time, you need personnel with
marketing and sales experience.
 To reach your target audiences, use a variety of
marketing channels such as social media, email
marketing, advertising, content, and influencer marketing.

20.Facing competition
 Companies that undervalue their competitors are caught off guard when their competitors
outperform them.
 Another possibility is that rivalry drives a company to develop and stay ahead of the
competition. Finally, the competition could be a much larger company that swiftly
dominates the niche, making it difficult for smaller enterprises to exist.
 Product failure can be caused by a variety of factors, including a lack of innovation, poor
quality, higher prices, ineffective marketing techniques, and so on.
 Companies must keep ahead of the curve and take aggressive actions to counter possible
threats from competitors to ensure that their products remain competitive.
 They must also be able to respond rapidly to changes in customer preferences and
industry trends.
 To ensure that their products remain competitive, businesses must stay ahead of the curve
and take aggressive efforts to counter any threats from competitors.
 They must also be able to react quickly to shifts in customer preferences and industry
trends.
 To keep ahead of the competition, you must do the following:
 Hiring the best personnel with the most up-to-date knowledge and talents
 Keeping an eye on what your competitors are doing
 Keeping up to date on market developments
 Receiving regular consumer feedback in order to continue improving your product to
meet their needs

21.Conclusion
One of the most exciting days for a firm is when a new product is released into the
market. To ensure your product's market success, it's critical to take the time to
thoroughly analyse the market gaps that your product will fill. Furthermore, you must
understand how your clients expect you to meet their needs. The success of a product is
viewed as a planned process. It is recommended that you construct your product
backwards to ensure product success and avoid product failure. Always start with the end
objective in mind and work backward to decide how you'll get there and what you'll need.
References:
 Reasons Food Products Fail (itsallgoodsinc.com)
 Why Great Products Fail - February 2016-Duncan-Simester.pdf
 6 of the worst product failures in the food and beverage industry's history | Food Dive
 Pepsi A.M. | The Soda Wiki | Fandom
 Pepsi A.M. - Beloved Morning “Pick-me-up” Caffeinated Drink - Snack History
 https://www.snackhistory.com/pepsi-a-m/
 https://www.coursehero.com/file/24907727/PEPSI-individualdocx/#:~:text=Pepsi
%20A.M.%20was%20discontinued%20due,in%20the%20Morning%E2%80%9D
%20marketing%20campaign.
 https://www.mashed.com/224011/the-real-reason-pepsi-a-m-disappeared/
 https://rapidr.io/blog/why-products-fail/
 https://www.parlor.io/blog/why-new-products-fail-how-to-prevent-it/