Test Marketing in the Internet Age

PepsiCo, Inc. used Denver as a test market in 1998 for Storm, a new caffeinated lemon-lime soft drink. Light Storm, a zero-calorie version, hit Denver retail outlets, a year later. The testing included in-store product sampling, coupons for free two-liter bottles, and special television and radio advertising. Unfortunately, Denver was about the only place Storm sold well, and the brand eventually was pulled.

In October of this year, Pepsi announced that it would try again with Sierra Mist, a new …