On March 15, 1990, Pepsi introduced the “Pepsi Passport,” a credit-card-style discount program aimed at teenagers in Fargo, North Dakota. The initiative provides exclusive savings at various local retailers, enhancing the brand’s appeal among younger consumers. This program marks a significant effort by Pepsi to engage with a demographic often overlooked in marketing strategies.
The “Pepsi Passport” is a vibrant, plastic card that offers discounts at youth-oriented businesses and events. According to Linden Boyd, a marketing consultant working with Dakota Beverage Co., the program has quickly gained traction, with over 3,000 cards distributed in just two weeks. Boyd emphasized that the card is intended for individuals aged 12 to 18, a group that he noted has limited access to traditional cash or credit cards.
The concept for the card emerged from research conducted by Pepsi in the Twin Cities, revealing that young people are eager to spend money on various activities, including clothing, food, and entertainment. Boyd noted that many teenagers feel a lack of identity in financial transactions, stating, “They don’t have a cash card, a bank card… they don’t have anything other than an empty wallet or purse.”
The program aims to give teenagers a sense of “grown-up” status while offering tangible benefits. Participating businesses in Fargo provide discounts as a way to attract young customers, with current offers including 10 percent off purchases at local Hardees and Taco John’s, 15 percent off at Musicland, and special rental deals at Take 2 Video. Boyd described the initiative as a promotional tool rather than a commercial venture, stating, “I have no revenue objective.”
The distribution of the Pepsi Passport began at a booth in the West Acres Shopping Center, where the enthusiastic response from teenagers has exceeded expectations. Boyd anticipates that more retailers will join the program as it gains popularity. He aims to evaluate the program’s effectiveness in December, potentially leading to new cards and expanded offerings.
The launch of the “Pepsi Passport” is part of a broader strategy to connect with younger consumers and enhance Pepsi’s image in their eyes. Carol Labernik, manager of the Vanity store at West Acres, noted the positive impact the card has had on young customers, stating, “It’s making them feel kind of grown up because we treat it like it’s a credit card.”
The first event associated with the program, a “beach bash,” is scheduled for Friday night at the Red River Valley Fairgrounds. Admission will be free for those holding the Pepsi Passport, reinforcing the brand’s commitment to creating engaging experiences for its young audience.
Fargo serves as the pilot market for this innovative program, with plans to expand to the Twin Cities and potentially other areas across the country. As Pepsi continues to adapt its marketing strategies, the “Pepsi Passport” may pave the way for similar initiatives targeting teenagers in the future.
