Crystal Pepsi’s Clear Assumptions
In 1992 PepsiCo, one of the leaders of the soda industry, released a shiny new product called Crystal Pepsi. It was marketed as a clear, caffeine-free soda that still had that classic Pepsi flavor. By the end of 1993, it was pulled from the shelves. In this article, I will explain three ways in which the company made flawed assumptions that lead to the product’s failure.
Problem Assumption:
People want a natural/healthy product from Pepsi
During the time of release of Crystal Pepsi, there was a fad in the beverage business of natural and clean-looking products that were good for consumers. PepsiCo wanted to jump on this trend and made the assumption that this fad was truth and here to stay. The also assumed that people would look to and trust Pepsi to deliver a healthy product.
Solution Assumption:
Make the Pepsi clear and caffeine-free
Their solution was to change the color from dark brown to clear, and sell it as a special product. It was an attempt to reinvent a staple. They assumed that people wanted the color of the beverage to change. Or perhaps they assumed that the customer wouldn’t believe the beverage was clean, fresh and caffeine-free unless it was clear.
Implementation Assumption:
By making the Pepsi clear, users will buy it as a healthy option
They assumed that consumers want something that looks like one thing (a clear, healthy beverage), and tastes like another (OG Pepsi). When Crystal Pepsi first launched, there was a short surge in sales, maybe out of curiosity. However, a problem occurred when user research found that Crystal Pepsi didn’t taste the same as original Pepsi, and that might have been the reason that there weren’t many consumers who bought the product a second time.
Conclusion:
After sales plummeted, Crystal Pepsi was pulled from the market.
Consumers were comfortable with the original dark brown color of Pepsi products. When you push people out of their comforts they don’t always respond well. Heinz later made this same mistake of reinventing a staple when they made different brightly colored ketchups. It too failed.
From the color of the beverage, to the change in taste PepsiCo didn’t address enough assumptions. It would be interesting to know what the hypotheses were during their initial testing/research of Crystal Pepsi. Were any of these assumptions on the table?
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