pepsico innovates with insight
11/25/2006 03:01:00 PM 
Taking a quick glance through the presentations given by PepsiCo to analysts on October 23rd, shows a company pre-occupied with re-inventing itself in response to changing market conditions.
It's interesting to see that in an environment where consumer insight and research is often being substituted for findings-based intuition , insight is clearly at the heart of Pepsi's drive for re-invention.
It's also refreshing to see a company clearly acknowledging that it has issues and responding accordingly, understanding that it's going to need to invest to help bring about this change; PepsiCo announced a $500 million war chest to fund new acquisitions, which it has been spending acquiring both Izzie and Naked Juice.
6 highlights from the presentation:
1. Clearly defined challenges and responses
Three core challenges:
Changing retail environment
Demands from consumers for health and wellness
Rising inflation
2. Highlighting the importance of consumer insight
Using insight to segment the water business according to consumer segment from the mainstream Aquafina customer to Sobe's LifeWater for "image driven variety seekers".
3. Smart consumer segmentation by need states and mapping product against it
From social pleasure to heart health.
4. Responding to consumer's health demands
Creating a new healthy snack brand Flat Earth
Partnering with Whole Foods for drink innovation
5. Innovation beyond product
Packaging innovation for Pepsi- 35 different design variants for the regular can, to match culture; from music, to fashion, to cause
Hot vending innovation for Starbucks
6. Collaboration and innovation with retail partners
Holding and hosting innovation summits with key retailers where consumer insight drives new ideas in category management and promotion
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