Innovating profitably in affordable snacks

Pepsi’s affordable snack segment is largely designed for emerging markets, but changing conditions (including a recessionary environment and increased production costs) were jeopardizing the financial viability of the business. The Global Innovation Team asked Black Bamboo to develop marketing and product innovation to restore margins and intrigue in the segment, with a focus on Brazil.

Through consumer ethnographies in low-income markets as well as retailer discussions, we evidenced a disconnect between what the current portfolio provided, what the realities of production and sourcing allowed, and what local consumers really needed.

from global value play
to local, affordable treats

Consumer and retailer discussions helped us identify two approaches: create new products tapping into locally sourced nutritious ingredients (e.g. cassava), and re-think the entire marketing mix to better align promotion and activation strategies with cost-conscious consumer attitudes and behaviors.

This initiative allowed Pepsi to introduce higher nutrition snacks that boosted the bottom line as well as consumer confidence.

What we did: Consumer Insights, Foresight Analysis, Innovation Strategy/Visioning