Pepsi Refresh Project - A Scammers Paradise?

In January 2010, PepsiCo. announced that it would be foregoing their traditional Super Bowl Ad Campaign in order to focus on a Project called Refresh Everything. By utilizing funds normally reserved for the anunal and quite extensive Ad Campaign Placement which has been placed every year by PepsiCo for the past 23 years, Pepsico.s going in another direction and has left their spot vacant in one of the most watched commercial segment for any professional game:The Super Bowl. 

Pepsico. made the decision to move forward with a project designed to get great ideas off the ground with the intent to not only improve the lives and members of the communities in which they live, but also projects that pose with the ability to take it a step further by transforming and making an impact on all of America.

By ditching the Super Bowl Spot, Pepsi announced that it is investing money saved from Commercial Advertisement Investment and is allocating $20 Million towards a Social Media Program called Pepsi Refresh. The Pepsi Refresh Site will allow individuals with big ideas and those with smaller ideas to submit and compete allowing individuals to vote for the Projects that speaks to them.

There was a solid point to clarify the line between Advertising and Marketing Investments made by Shar VanBoskirk who said,"Advertising budgets will decline. But Marketing Investments won't." Lisa Bradner further reflects and points out that while the era for annual TV budgets is coming to an end found in her report, Adaptive Brand Marketing. 

PepsiCo., continues to focus on letting the Brand filter into the world of Social Media. This allows Pepsi to achieve a higher goal by having the Brand seen as one that cares about making the world a better place.This is accomplished by associating the Brand with the image of respect and humanity. During this Refresh Campaign Process, though not a goal, it doesn't hurt that Pepsi has simultaneously gained fans by utilizing this focus and capitalizing on the effectives of how Social Media can influence a Brand's Perception. 

Social Media has long ago arrived in the forms of Facebook pages with the cute little "like button" attached, Twitter accounts, Blogs, Delicious, StumbleUpon, My Spaces, iLike, and Digg and the list goes on and on. It really doesn't matter how many followers you have or friends or Fans, but it's how you use these assets that count and will allow you to grow your Brand, recognition and respect in the Category or Industry that you are in.

Now, on the Pepsi's Refresh Side of things, dropping $20 Million in a Program designed to fund thousands of Community Projects can be a very smart move. The project has the ability to demonstrate Pepsi as a Brand that truly cares and wants to see members of the Community recognize this image. By portraying a caring voice and emphasis on positive Brand Image, this may lead to future purchases increasing new sales, recommendations to friends through Share of Voice and allowing the PR work to be placed into the hands of the Consumers and those Participating in the Projects. 

However, this type of programming may pose significant threats and consequences to the Project's Big Picture Objectives if Social Media is unable to meet the Core Objectives which is to have the Brand be seen as a committed partner with the true intent and desire to make the world a better place, not just by providing funding to thousands of community projects in the Refresh Everything Project.

Pepsi's Refresh Everything Project allocates 1.3 Million dollars in funding and awards that amount each month to 32 out of the 1200 entries selected in the following increments: 2 Recipients in the 250K Grant Category, 10 Recipients in the 50K Grant Category, 10 Recipients in the 25K Grant Category and 10 Grant Recipients in the 5k Grant Category. Total again, 32 Recipients totaling 1.3 Million a Month.

Social Media and integrating it into contest formats or cause formats isn't a new concept and has been used often to develop Brand loyalty. However, some questions remain:

Is Pepsi demonstrating a commitment in truly understanding how to make that deep connection with consumer involvement and are they accepting the responsibilities and taking the necessary steps that need to be taken in order to be seen as a Brand who desires to make the World a better place?

Did Pepsi understand the risks involved with experimenting and implementing a Social Media "Do Good" Campaign Approach and recognize the long-term irreversible consequences on a Brand if the Refresh Project is not closely monitored, sanctioned and properly structured?

On the Consumer Involvement front, perhaps Pepsi did think about that which is why, if you ask your neighbor, colleague or a friend if they have heard of the Refresh Project, they might say no unless they are in a Big City surrounded by Billboards. Instead, they are letting the Project Leaders and Supporters of the Ideas Advertise the Brand themselves by trying to capture Daily Votes for their submitted Project to move up in the ranks, with the hopes of finishing, in the Top 10. 

However, for those involved and actively participating in Pepsi's Refresh Project, the opinion of Pepsi and the respect of the Brand and the Company is quickly declining. Pepsi should be thankful they kept their marketing budget intact because damage control and correcting matters will have to be kicked in to keep the Brand "Doing Good".

Fraudulent behavior, including identity theft, are reported daily. The reported behavior includes stolen or purchased e-mail accounts from the New York Times Magazine Subscription Lists, fundraiser email lists used without the permission of the owner on the account, Proxy Voting and illegal Voting from software that automatically votes. Action has not yet been taken, but Pepsi will be taking action to avoid a lawsuit that is being filed. In fact, so many complaints have been filed for illegal voting and fraud, that sources say Pepsi has hired a second auditor and they have plans to bring in a third. Pepsi officials said that they were aware that cheating is occurring with the Leader board and that it is so corrupted that those involved in the scheme have to "float votes" to other Projects because having 1,000,000 votes a day would be rather obvious. So,Pepsi has admitted that they are aware of the corruption, and that the complaints are being listened to and investigated.

With 10 Days Left, how long will it take for Pepsi to disqualify the Projects that have been identified who aren't "Doing Good"? 

It's not necessarily Pepsi's fault, yet. They aren't committing a crime, but they will be dealing with a class action lawsuit being filed demonstrating that Pepsi allowed illegal activity to continue with their full knowledge. 

We all want people to "be good" and "do good" in life. However, Pepsi should have realized that Brand Loyalty doesn't come by giving individuals and organizations free money. It brings greed, corruption and the honest individuals who work so hard and need it most...lose. So, for the Good Projects competing who are loyal to your Brand, let this be a lesson.Sometimes it's better to retain than to expand