
Case Study
Pepsi’s Rebranding Failure in 1960s Taiwan

What happened to Pepsi?
In the 1960s, Pepsi launched its business in Taiwan with a series of translation and cultural adaptation problems. For example, they misinterpreted the pronunciation of their brand name from ‘Pepsi (百事)’ to ‘Funeral Affair (白事)’ in Mandarin. They failed to adapt their messages from English to Chinese, which affected how Taiwanese customers understood the brand images of Pepsi.
Reasons for Cultural Adaptation and Translation Problems
Lack of Research
They didn’t research the differences between English and Chinese language systems, leading to direct translation of messages without adaptation to Chinese culture.

The differences between the English and Chinese language systems.
English
Relying on structures of alphabets to form vocabulary and pronunciations of each word.
Chinese
Using characters to form words or morphemes, so the pronunciation isn’t based on individual alphabets and phonetic sounds.

Breakdown of the Translation Problems
As Pepsi didn’t know about the differences in the language systems, they used the English language system to interpret Chinese content. They interpreted Pepsi’s Chinese name ‘百事 (bǎishi)’ through phonetic sounds (English system), which shares the same pronunciation of ‘Funeral Affair (白事)’ in Mandarin.

Pepsi’s Ineffective Solution
After Pepsi discovered the problems, they changed their name from Pepsi (百事) to 'Pepsi-Cola' (百事可樂) in Chinese, borrowing the word “Cola” from their competitor, Coca-Cola. However, it couldn’t solve the pronunciation problems, which still connects to ‘funeral affair (白事)’ in Mandarin. And they have never adapted the messages of their English name to Chinese name.

Pepsi’s Original Messages
Pepsi was invented in 1893 by Caleb Bradham (1867-1934) in America, who believed his drink could assist with humans’ digestion. So, he borrowed the biological word “pepsin,” an enzyme in human stomachs that helps our digestion.
Suggestions for Pepsi’s Chinese Name
Reconnection to the Original Messages
元氣消樂' (Yuán Qì Xiāo) combines:
'元' =Element or Essence
'氣' =Air, Energy, or Vitality
'消' =Digest or Consume
'樂' =Joy or Happiness
Functions: The word ‘消’ connects to the original meaning 'Pepsin.’ The term '元氣' is a popular word from Japanese but has also become fashionable in Chinese. It expresses positive energy without making Pepsi appear old-fashioned, and it also adapted the messages to Chinese cultures.
百喜' (Bǎi Xǐ):
The second word of '百事' (bǎishì) changed from '事' to '喜’
‘喜’ = Happinese
Functions: The word ‘喜’ means happiness and retains a similar sound to the original name, but removes the association with 'funeral affair.' Although it may not directly connect to the original messages, it forms a connection between customers and Pepsi’s energy and positivity.

Conclusion
When we need to adapt any brand content to other languages, we should have a deep understanding of other cultures and language systems. By conducting thorough research, we can ensure the adaptation of brand messages. If Pepsi had researched Taiwanese culture, they could have conveyed their messages accurately to Taiwanese audiences.