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About PepsiCo and its

Design Thinking
PepsiCo is a global food and beverage company that embraces
design thinking to drive innovation and enhance customer
experiences.

By Somya Dubey
PepsiCo: An Introduction

PepsiCo is a multinational corporation known for its popular brands such as


Pepsi, Lay's, Quaker Oats, Gatorade, and Tropicana. With a rich history spanning
over a century, PepsiCo continues to be a leader in the food and beverage
industry.
Originating from Caleb Bradham's creation of "Brad's Drink" in 1893, which later
became known as Pepsi-Cola, the brand has a rich legacy spanning over a
century. Pepsi is recognized for its distinctive taste, red, white, and blue circular
emblem, and various iconic advertising campaigns.
PepsiCo operates in over 200 countries and territories, making it a global
household name. The company's diverse portfolio includes a wide range of
beverages, snacks, and food products marketed under different brand names.
Industry Analysis
Analyzing the dynamic food and beverage industry is crucial for PepsiCo's success. By
understanding market trends and consumer preferences, PepsiCo stays ahead of the
competition and identifies new growth opportunities.

Market Overview and Size: Understanding the overall scope and size of the industry, including
global, regional, and sector-specific market sizes..

Market Segmentation: Identifying different segments within the industry, such as packaged
foods, beverages, fresh produce, dairy, confectionery, etc.

Consumer Trends and Preferences: Analyzing changing consumer behavior, preferences for
healthier or sustainable options, interest in specific diets (like vegan, gluten-free), and
demand for convenience foods or functional beverages

Regulatory Environment: Understanding food safety regulations, labeling requirements, health


standards, and compliance issues that impact the industry. Changes in regulations can
significantly affect operations and product formulations.
PepsiCo Logo

The PepsiCo logo has undergone various redesigns


since its inception, but the current design features a
circular shape with a red, white, and blue color
scheme. The logo is meant to symbolize the
company's values of refreshment, fun, and
innovation.
The red, white, and blue colors are meant to evoke a
sense of patriotism and national pride. Additionally,
the circle shape is a symbol of unity and
completeness, which represents the company's
commitment to bringing people together through its
products.
Over the years, the PepsiCo logo has become a
recognizable symbol of the company's brand identity
and values.
About PepsiCo Vision and Mission
Vision Mission
"PepsiCo's vision is to deliver top-tier • Global Leadership: The company
financial performance over the long term by aspires to maintain a leading position
integrating sustainability into its business in the global market for convenient
strategy, leaving a positive imprint on society foods and beverages.
and the environment."
• Winning with Purpose: Emphasizes
This vision emphasizes the company's the significance of achieving success
commitment to sustainable growth and while aligning with a greater
responsible practices. PepsiCo aims not only purpose, including sustainability
to achieve financial success but also to efforts, consumer satisfaction, and
integrate sustainability into its core business social responsibility.
strategies, thus making a positive impact on • Sustainability Focus: Integrating
society and the environment. sustainability into its core operations
and decision-making processes is a
crucial aspect of PepsiCo's mission.
• Consumer Delight: Prioritizing
consumer satisfaction by delivering
high-quality products that meet
consumer preferences and needs.
PepsiCo Brands

Pepsi Lay's Gatorade


Pepsi is one of PepsiCo's Lay's is a globally Gatorade is a popular
flagship brands, offering a recognized brand for its sports drink that provides
refreshing and iconic cola delicious, crispy, and wide hydration and energy to
beverage loved worldwide. variety of potato chips athletes around the globe.
flavours.

Doritos is an American brand of flavoured


tortilla chips produced by Frito-Lay, a wholly
owned subsidiary of PepsiCo. The concept for
Tropicana Doritos originated at Disneyland at a restaurant
Tropicana is a trusted managed by Frito-Lay. In 1966, Doritos became
brand known for its high- the first tortilla chip available nationally in the
quality and refreshing United States.
orange juice products.
Market Share of Carbonated Drinks
Pepsi Coca-Cola
Pepsi holds a significant share of the carbonated Coca-Cola, PepsiCo's main competitor, also holds a
drinks market, offering consumers a range of flavors considerable market share and offers a diverse
and innovative beverage choices. It competes closely portfolio of carbonated beverages. The competition
with its main rival, Coca-Cola. between Pepsi and Coca-Cola is often referred to as
the "cola wars" due to the intense rivalry between the
two companies.
While exact market share numbers may vary, Pepsi
has consistently been one of the top players in the Both Pepsi and Coca-Cola invest heavily in marketing
industry, capturing a significant portion of the market. and advertising to maintain and expand their market
share in the carbonated drinks industry.
Opportunities
there are several opportunities that companies like PepsiCo might consider to drive growth,
innovation, and market expansion. Here are some potential opportunities:

1. Health and Wellness Trends: The growing consumer demand for healthier food and
beverage options presents an opportunity for PepsiCo Investing in healthier alternatives,
low-sugar or natural ingredient beverages, and snacks aligned with health-conscious
consumer preferences could be beneficial.
2. Plant-Based and Alternative Products: the rise in plant-based diets and sustainability
concerns, there's an opportunity for PepsiCo to develop and market more plant-based
beverages and snacks.
3. E-Commerce and Digital Innovation: The shift towards online shopping and digital
platforms offers an opportunity to enhance its digital presence. Investing in e-commerce
strategies, personalized marketing, and direct-to-consumer sales channels can help
reach a broader customer base.
4. Expansion in Emerging Markets: Exploring and expanding into emerging markets,
especially in regions experiencing economic growth.
5. Sustainability Initiatives PepsiCo can seize this opportunity by further investing in
sustainable packaging, responsible sourcing of ingredients, and reducing the
environmental footprint of its operations
PepsiCo's Approach to Design
Thinking
1 Human-Centered 2 Creative Ideation
PepsiCo puts people at the By encouraging creativity
heart of its design thinking and diverse perspectives,
process, focusing on PepsiCo fosters a culture
understanding and meeting of innovation and
consumer needs and generates out-of-the-box
desires. ideas.

3 Iterative Prototyping
PepsiCo creates multiple prototypes and gathers feedback to
refine and improve its products and packaging.
Success Stories of Design Thinking at
PepsiCo
Ice Cans Smart Vending
Machines

Recyclable Snack
Packaging
The introduction of ice PepsiCo's commitment to
cans allowed PepsiCo to PepsiCo implemented
sustainable packaging
provide a unique drinking design thinking to create
design led to the
experience by keeping the intelligent vending
development of
beverages colder for machines that offer
recyclable packaging
longer. personalized beverage
solutions for their snack
recommendations based
products.
on consumer preferences.
The Impact of Design
Thinking on PepsiCo's
Business
Innovation Competitive
Design thinking has enabled Advantage
PepsiCo to consistently By applying design thinking
innovate, introducing new principles, PepsiCo
products and packaging that differentiates itself from
resonate with consumers. competitors, enhancing
customer loyalty and market
share.

Customer Satisfaction
Design thinking drives PepsiCo's focus on meeting and exceeding
customer expectations, resulting in improved satisfaction rates.
Challenges Faced by
PepsiCo in
Implementing Design
Thinking
While design thinking offers immense benefits,
implementing it at the scale of a multinational corporation
like PepsiCo poses challenges such as resource
allocation, cross-functional collaboration, and managing
cultural change.
Future of Design Thinking
at PepsiCo
PepsiCo will continue to leverage design thinking as a strategic
tool to drive innovation, create meaningful experiences, and stay
ahead in the ever-evolving food and beverage industry.

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