How PepsiCo identifies customer needs: Insights from Bryant Ison

Summary

In this interview, Brandon, a global innovation leader at Pepsi, discusses how innovation drives branding and marketing worldwide. He explains that while there may be no unmet needs in beverages, innovation creates unique experiences that resonate with consumers, citing the global launch of the Lemon Lemon lemonade under 7UP as an example. Brandon emphasizes understanding unarticulated consumer desires across diverse markets to create products that connect emotionally. He also shares insights from his work at Johnson & Johnson, highlighting the success of KY Warming, a product designed to enhance user experience in unexpected ways, demonstrating how innovation can transform and grow brands globally.

Takeaways

• 🌍 Innovation is a key driver of global brand growth, helping companies connect with consumers in meaningful ways.
• 🥤 Even in markets where there seems to be no unmet need, innovation can create products that consumers enjoy and integrate into their lives.
• 🍋 Understanding unarticulated consumer desires is crucial for developing globally appealing products.
• 🌐 PepsiCo's global lemonade brand, Lemon Lemon, demonstrates how research across multiple countries can inform product innovation for international success.
• 💡 Marketing and branding alone have limits; product innovation is essential to truly engage consumers.
• 🧪 Research and R&D collaboration can uncover unique product enhancements that address subtle consumer preferences.
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• 🔥 Example from KY brand: developing a warming lubricant met an unspoken consumer desire and significantly boosted brand growth.
• ❤️ Innovation can enhance consumer experiences and relationships beyond simply solving a problem.
• 🌟 Success often comes from creating products that feel enjoyable, surprising, or fun rather than strictly necessary.
• 📊 Understanding cultural and regional consumer behavior is key to launching successful global products.
• 🚀 Incremental innovations, like product feel or sensory experience, can drastically change a brand's trajectory.

Q & A

How does innovation play a role in global branding and marketing?

Innovation is key to growing brands as it allows companies to connect with consumers' unarticulated wants and needs. It goes beyond traditional marketing by addressing deeper desires and creating experiences that resonate with customers globally.

What does the term 'unarticulated wants' mean in the context of beverage marketing?

Unarticulated wants refer to consumer desires that they cannot fully express or articulate. In beverage marketing, this could mean finding a drink that fits into a specific moment or satisfies a hidden need, like a particular taste or experience with the product.

Why does Brandon believe there are no 'unmet needs' in the beverage industry?

Brandon argues that while there may not be unmet needs in terms of basic product availability, there are always unarticulated wants that consumers have. These are wants that, when addressed, can lead to the creation of highly successful and innovative products.

Can you give an example of how PepsiCo innovated in the global beverage market?

PepsiCo developed the global lemonade platform **Lemon Lemon**, under the 7Up brand, after extensive research in multiple countries. The product was designed to tap into consumers' desires to connect with nature, which was identified through research in countries like Egypt, Russia, Mexico, and the United States.

What made **Lemon Lemon** a unique product in the global market?

Lemon Lemon stands out because it reinvents lemonade, a drink that's been around for centuries, by focusing on consumers' emotional connection with nature. This innovation allows PepsiCo to offer a product that resonates deeply with people across different cultures.

What role did global research play in developing **Lemon Lemon**?

Research in diverse regions, including Egypt, Russia, Mexico, and the United States, was crucial in understanding the unarticulated wants of consumers. It helped uncover the emotional connection people had with natural products, which influenced the development of **Lemon Lemon**.

How did innovation impact the success of the KY brand at Johnson & Johnson?

Innovation in the KY brand led to the development of **KY Warming**, a personal lubricant that warmed when it interacted with moisture. This unique feature surprised consumers and helped drive significant growth for the brand, creating a deeper connection with its audience.

What was the key innovation behind the success of **KY Warming**?

The innovation behind **KY Warming** was its ability to provide a warming sensation upon contact with moisture, which addressed a subtle but important consumer preference. This product wasn't just about solving a need, but creating a new, enjoyable experience.

What does Brandon mean by ‘branding can only carry the weight so much’?

Brandon suggests that branding can establish a product’s identity, but it’s innovation—particularly product innovation—that truly drives the growth and long-term success of a brand. At some point, a brand needs to offer something new and exciting beyond just its marketing.

How can understanding consumer emotions and desires influence product development?

Understanding consumer emotions and desires helps brands create products that resonate deeply with their audience. By tapping into unarticulated wants, brands can develop products that feel personal and meaningful, leading to stronger customer loyalty and success in the market.