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When two Orange County,
Calif., computer programmers last month named a computer virus they
had discovered "Code Red," after the cherry soda they had been chugging,
they gave PepsiCo's new soft drink global brand recognition money
can't buy.
The supersweet, cherry-flavored
brand extension of Mountain Dew, which hit shelves in May, became
the fifth-most-popular soft drink sold at convenience stores and
gas stations in July. That's a feat, considering Code Red is only
available in single-serve sizes and has yet to be advertised on
television.
Ryan Permeh, a programmer
at eEye Digital Security, Aliso Viejo, Calif., says he and his colleague
were "inches away" from calling the new virus they discovered the
"tequila worm." But Code Red, which he had bought "like six bottles
of" to keep awake through the night, seemed appropriate given what
the virus did: wipe out Web pages and replace them with the message
"Hacked by Chinese." PepsiCo later sent Permeh and the other programmer
five cases of Code Red in appreciation.
Pepsi's own "guerrilla"
marketing campaign for Code Red was well under way by the time the
Code Red worm began infecting about 750,000 computers. The brand
has boosted the Mountain Dew name in what has traditionally been
its toughest market, the urban and minority set. While "green Dew,"
the traditional brand, has long been a hit with computer geeks and
other largely white audiences, Code Red is more popular among black
consumers, according to Pepsi.
Pepsi officials attribute
some of the drink's success in minority markets to the fact that--according
to their customer data--blacks and Hispanics generally prefer cherry-flavored
beverages. But the Code Red name also helped. PepsiCo considered
calling the drink Wild Cherry Mountain Dew, until urban and ethnic
focus groups said they preferred Code Red.
Even prior to the virus,
the Code Red name also gave Pepsi's advertising agency for the soda,
UniWorld Group, a gimmick. UniWorld, a minority advertising agency
based in New York, recorded a rap radio jingle called "Crack the
Code" featuring rappers Fatman Scoop and Busta Rhymes. The agency
also put the slogan on graffiti-cartoon magazine ads it ran in hip-hop
magazines such as Vibe and the Source.
UniWorld pumped up the
word-of-mouth buzz by sending out compilation CDs and free cases
of Code Red to hip-hop celebrities such as producer Jermaine Dupri
and radio deejay Funkmaster Flex. Spearheading the effort was Pepsi's
director of urban and ethnic marketing, Charlee Taylor-Hines, who
has also been responsible for luring hip-hop stars Mary J. Blige
and Wyclef Jean to shill for Pepsi. "With the urban youth audience,
you really have to gain street credibility first, and you can't
do that with a typical mass-marketing campaign," Taylor-Hines says.
Code Red's success illustrates
that splashy, expensive launches aren't the only way to introduce
a new soft drink. An element of mystery can make a brand more desirable,
says Dawn Hudson, Pepsi's senior vice president for strategy and
marketing. "It creates a niche feeling," she says.
But part of the lure
of an urban audience and image is that the general public follows
the trend. Pepsi's plan is to broaden its target audience. Bottles
of Code Red showed up in the decidedly suburban summer movie "American
Pie 2," which recently premiered. Pepsi also plans to introduce
Code Red in multipacks in grocery stores beginning in October, and
is working on a TV commercial with New York-based Omnicom Group's
BBDO Worldwide, which has traditionally handled Mountain Dew, to
begin airing at roughly the same time.
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