Design Thinking- Pepsi

- Himanshu Shekhar A050

- Salvi Shrivastava A051
- Harsh Shukla A052
- Jaspartap Singh A053
- Karanjit Singh A054
AGENDA

What is Design Thinking and its framework?

How PepsiCo turned design thinking into strategy?
The reason behind design thinking and its effects?
Managing Change
What is Design Thinking?
It is a discipline that uses the designers sensibility and methods to match
peoples need with what is technologically feasible and what a viable
business strategy can convert to customer value and market opportunity.
How design thinking happens?
Inspiration Phase
Locate the business problem, opportunity and potential threats
Observe the customers perspective, their need and want
Identify the business constraints- time or resources

Ideation
Brainstorm
Build creative frameworks
Apply integrative thinking
Prototype and test

Implementation Phase
Execute the vision
Help the marketing design a communication strategy
Spread the word
The reason behind Design Thinking
Sale of Pepsi dipped by 14% over 9 yrs.

Integrate 2 sides: Drinks and Snacks.

45% revenue from Good for you products

Quick launch in test markets 3 months cycle

Tracking consumer purchase

Enhancement of user experience

Integration of change in supply chain

The reason behind Design Thinking

Sale of Pepsi dipped by 14% over 9 yrs.

Integrate 2 sides: Drinks and Snacks
Quick launch in test markets 3 months cycle
Tracking consumer purchase
Enhancement of user experience
45% revenue from Good for you products
Integration of change in supply chain
 Product Portfolios

Good for You Better for You Fun for You

Nutritious products Indulging yourself Traditional foods and
that include fruits, doesnt have to be beverages that the
vegetables , whole necessarily guilty taste buds will
grains etc. Lower Fat Content, appreciate
Foods and Beverages Snacks with Whole Most Billion Dollar
that fuel the body, grains and Beverages Brands are in this
performance and with fewer calories category
liefestyle Mountain Dew,
Oats, Naked Juices and Baked Lays, Pepsi Kick Mirinda, Lays, Cheetos
smoothies
 WHEN PEPSICO TURNED DESIGN THINKING INTO STRATEGY

PEPSI SPIRE AQUAFINA

Touch screen soda fountain New package design: Captures a sense of

Choose a drink > mix in flavour shots > enjoy movement and fluidity; brings refreshment

Use of analytics: Observes which brands and and elevation of the brand

flavours people love most to optimize the offerings

New line: Aquafina Sparkling (naturally

flavoured sparkling water beverages)
 WHEN PEPSICO TURNED DESIGN THINKING INTO STRATEGY

NSPIRE

Mobile culinary experience on wheels

Physical manifestation of PepsiCo's many brands
Vehicle has kitchen that serves flavour inspired dishes
(Mountain Dew Zesty Chicken Wings)
Embedded Pepsi Spire units
Provides consumers with a dynamic and contemporary
opportunity to engage with the company's brands
 WHEN PEPSICO TURNED DESIGN THINKING INTO STRATEGY

GATORADE HYDRATION TRACKING SYSTEM

Designed and piloted a hydration tracking and personalized sports fuel

delivery system
System includes formula-specific Gatorade pods, a squeeze bottle with
Bluetooth tracking cap, and a mobile hydration app
Gatorade developed Drinkfinity to make individual and sport-specific
fuelling recommendations
Effects:
Organic segment witnessed 4% revenue growth
Cut water use by 20% in 3 subsequent years
Sales revenue contribution for soft drink segment reduced
to less than 25%.
Annual productivity savings = 1 Billion USD (2013)

2007-11 Research on Blueberry Gatorade

Sold 250,000 cases for 6 months
Star product along with Mountain Dew

Contract to develop
customized Electrocyte
Gatorade Pod
 Managing Change

Bringing everyone in the company for a dramatic change

Pushing culture change among people
Check stage of incorporation of design thinking in the
process

How Design can Thrive The Process

Bring in the right kind of design leaders

Get the right sponsorship from the top
Get as many external sponsorships as possible

Launch and Failure

3 month strategy for product
extensions
Testing for new products
Mountain Dew Kickstart (80
calories, USD $200 Mil.)
 Performance with purpose
People
Engage peoples hearts, heads and
hands and sustain talent and supply
chain partners

Fundamentally changing how to Focus on delivering sustainable long

deliver performance term growth rate while leaving a
positive imprint on Society and
These 3 things were at the heart of Environment.
every strategy v

Planet
Making the food system more sustainable
Promoting efficient use of land and natural
resources, Recyclable Plastic
Products
Transforming the portfolio and offering
healthier options
Reducing Sodium, Sugar and Saturated fats
THANK YOU !