Pecsi Billboard in Buenos Aires

Have a Pecsi: BBDO Argentina tweaked the venerable brand to suit local market tongues and tastes.

The 1985 New Coke launch taught soft drink makers and marketers the risks inherent in tampering with the real thing. Amazing then, that PepsiCo green-lighted a Buenos Aires ad agency’s proposal last year to actually change the name of their world-famous brand.

The idea? Like Nike and Levi’s, Pepsi is one of those U.S. brand names that often proves problematic for native Spanish speakers. In Argentina, the pronunciation usually sounds more like “Pecsi,” so the creative minds at BBDO Argentina reasoned, why not change the name to suit local tongues and tastes? The gamble paid off.

The “Pecsi” campaign, which brought the brand closer to Argentine consumers, was just awarded the Grand Prize at the Wave Festival, the most competitive showcase of Latin American advertising creativity. Another top prize went to Argentina’s Del Campo Nazca Saatchi & Saatchi for their successful Chocolatometer campaign for Cadbury. The creative spots feature a chocolate meter mirroring female emotional reactions to romantic situations.

While positive stimulation raises the chocolate bar repeatedly, a George Costanza-like gaffe on the part of the male ultimately leaves the Chocolatometer empty. The tagline: A Man Will Never Be As Good As A Whole Cadbury. Perhaps another sign of global ad spend recovery, AdAge says there were 40% more entries at this year’s Wave Festival which just wrapped up in Rio. (Full article)

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Kraft Cadbury Argentina

It may not be the perfect deal worldwide, but Kraft/Cadbury has them smiling in Argentina.

Judging by today’s headlines, Kraft’s $19.44 billion purchase of U.K.-based Cadbury Plc. is not going down well with most market insiders: Warren Buffett went on CNBC and said he “felt poorer” (after Kraft upped the ante by almost $3 billion) and MarketWatch’s Simon Constable warns, “Kraft is going to get indigestion from gobbling Cadbury.”

While the deal may present major challenges in terms of leverage and global integration, at least it makes sense in one of the 155 countries where Kraft Foods operates: Argentina. Martín Bidegaray at Clarín offers a good analysis and ranking of both Kraft and Cadbury’s offerings in the local market and finds two very complementary brand portfolios.

Kraft has candies, chocolates and crackers like Terrabusi, Pepitos, Milka, Variedad, Melba and Tita, while Cadbury is Argentina’s King of Chicles with brands like Bubbaloo and Beldent. And just as the acquistion will put Kraft/Cadbury that much closer to global market leader Nestle, so too in Argentina will the new duo be better positioned to take on local market leader, Arcor, which dominates several of the local candy/cookie/cracker segments and generates annual revenues in excess of $2.2 billion.

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