Pepsi’s biodegradable backlash: the snack bag that was too noisy Harvard Case Solution & Analysis

Introduction

The basic idea which has been identified in the case or the article “Pepsi's biodegradable backlash: the snack bag that was too noisy” presents the situation where PepsiCo and its R&D group actually decides to launch biodegradable bags in the year 2006. To initially test this concept and to become a sustainable firm, Pepsi launched the compostable bags for SunChips product which were launched to position themselves as healthy snacks or chips. The idea was that PepsiCo wanted to present itself as a sustainable organization. The company.Therefore. launched 100 % compostable chip package.

In spite an effort to make a user friendly packaging, it actually failed and the customers complained about the extra noise these packages made. PepsiCo itself knew that the package was crankier and cracklier which the customers did not actually like.

The packaging which made this noise was not liked by customers at all, and in fact people stopped using the chips because they just cannot bear the noise of the package. With the issue rising against the noise, PepsiCo went on to produce a new packaging which was a quieter bag and was still biodegradable.

This time around the customers actually did not find the noise irritating. Since SunChips was a smaller brand therefore, it did not affect the company at all. As per the findings, it is always better to test a new technology with the less preferred brand rather than raking the sales of star or cash cow products.

With constant development and efforts, PepsiCo eventually enhanced itself as a sustainable organization. PepsiCo with this move staked out as the first mover in this concept of becoming sustainable. The program has been quite successful and is now operating in more than 70 birdages and 22 countries simultaneously.

Main themes

The key or the major theme that has been identified in the case “Pepsi's biodegradable backlash: the snack bag that was too noisy” is the concept of sustainable marketing. Sustainable marketing is a concept which has aimed to look upon marketing strategies which are focused on securing equitable and environmental friendly viable and fair business for the existing and the future generations.

In this situation, PepsiCo was quite successful and generating revenues, however with the R&D investment and efforts, PepsiCo introduced sustainable packaging bags to become environmental friendly. Although it was a costly move and it did cost PepsiCo quite an ample amount, however,sustainability actually increased the brand image and customers after initial failure actually preferred the new concept.

PepsiCo reduced its profit margins and introduced new packing which was biodegradable. The major purpose was not profits and revenue, in fact this new packaging and Sun Chips have been launched to become sustainable and the efforts were directly related to sustainable marketing. This attribute was an instant success and PepsiCo went to become first company to do so in snack industry. The concept made by the company is a step towards becoming sustainable and unfriendly for the world.Pepsi’s biodegradable backlash the snack bag that was too noisy Case Solution

Visualizing Sustainable Development

The concept of visualizing sustainable development is based on the bearable, equitable and sustainable idea. A firm such as PepsiCo is a renowned and competitive brand in the snack food industry. With the introduction of sustainable product with healthy packaging the company has actually looked to serve the social, economic and environmental factors of the market. Snack foods have become quite unhealthy and it is considered as junk food.

However, the idea of becoming sustainable with the aspect of keeping economic, environmental and socially responsible the sales can also increase significantly. More countries, governments and NGOs have been emphasizing on the idea of developing sustainability in the organization.

Theoretical elements

The situation of PepsiCo identified in the case or the article indicates that the firm when launched sustainable and user friendly eco-friendly packaging it faced quite a few issues which actually decreased the sales for the company. ................................

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