How do you develop and implement a new method for rapid innovation tailored to a large multinational company? We helped PepsiCo create a method that radically cuts time to market and builds shared values across divisions. The innovations themselves are built on a deep understanding of consumer needs and aspirations, which have enabled the products to be more successful in the market.
In 2011 PepsiCo announced the creation of the Global Nutrition Group (GNG), a portfolio of the company’s nutritious products. GNG’s stated mission is to “establish PepsiCo as the leading provider of good-for-you food and beverages that are great tasting, wholesome, accessible, affordable and built on cutting edge science.” GNG includes billion-dollar brands like Quaker and Tropicana, as well as others in the areas of fruits & vegetables, grains, dairy, and functional nutrition.
PepsiCo hopes to triple GNG’s size by 2020. To achieve this goal, it recognizes the need to accelerate its innovation capabilities and timeline.
The creation of this Global Nutrition Group is part of our long-term strategy to grow our nutrition businesses from about $10 billion in revenues today to $30 billion by 2020. I think real change in this area can happen, as big corporations start having more two-way conversation with consumers. Consumers want to be healthy. Food could still taste good and be a lot healthier, and if it is mainstream could be just as affordable.
Ms. Indra Nooyi, CEO PepsiCo
On the lookout for innovation methods
PepsiCo was looking to incite disruptive change across its organization. It needed a new method of innovation that was both faster and built more strongly on consumer needs.
Based on Veryday’s successful previous partnerships with PepsiCo, discussions were initiated around how we could help prototype a fundamentally new approach to deep consumer insight, total experience design and rapid innovation. The partnership was also a strategic fit for Veryday, as we are driven to make healthier food more readily available.
An international and culturally diverse team was assembled, including people with backgrounds in anthropology, design, business, marketing, R&D, technology transfer, food and nutrition. Our collaborative R&D process broke down typical ‘silos’ within PepsiCo and got people aligned around tangible consumer demands, thereby building shared values for the organization.
We ensured that both global and local PepsiCo representatives participated, as we jointly explored important insights about each market’s key challenges. For instance, we learned that in Turkey, consumers are very interested in supporting local farmers. We made sure Tropicana’s packaging there reflected this, and identified other areas where the brand could be differentiated in the market.
The rapid innovation method (People3)
Veryday’s innovation team implemented a rapid consumer insight and innovation method called ‘Innovation Lab’, based on Veryday’s People3 approach. The aim was to reduce innovation cycles and uncover deeper local emotions and rituals around food across key markets.
We used a tool called ‘Emotional Experience Mapping’, which captures consumer drivers and pain points. It involves key stakeholders learning consumer behaviors and practices. The Innovation Lab format allows consumers to engage and express their dreams and aspirations in tangible ways.
We also introduced a new approach towards “total experience design.” We found ways to use all five senses to enhance and differentiate PepsiCo’s products, packaging, retail and marketing. In doing so, we delivered new exciting consumer offerings that were in line with customer’s aspirations, propelling new healthy breakfast, snacking and juice categories.
The collaborative approach helped accelerate and tighten the innovation process. Brand managers and product developers inside PepsiCo quickly became comfortable with the consumer insights and felt empowered to define the best way forward for each brand and product category, including a clear view of actionable next steps for how to get there.
We built a full set of market insight and strategic design opportunities. A valued outcome that was critical for the PepsiCo Quaker and German Müller Dairy joint venture, in the challenge of entering the US market.
To achieve disruptive change on the market, you need to look for co-creation and genuine, all-through collaboration, to solve complex business problems that ease consumers’ pain points
Jakob Boije, Project Director Veryday