Homemade by Pepsi: Product Innovation


CHALLENGE

Through its partnership with SodaStream, how can Pepsi disrupt the beverage business and grow the Homemade portfolio to a billion dollar brand in the next 5 years?

PROBLEM

Pepsi Homemade is caught in no mans land.

Long-time Pepsi fans want the flavors they're used to and don’t see the benefits of buying a whole new machine over cans or bottles. SodaStream loyalists purchased the machine to escape soda in favor of healthier drink alternatives.

OPPORTUNITY

Like craft beer before it, the craft soda industry is on the rise. The "Make My Own" category offers many similarities to craft beverages, allowing consumers to experiment with creative flavors and complex tastes.

But in order to leverage craft, Pepsi needs to overcome the perception that craft soda is "anything not Pepsi or Coke."

TRUTH

The beauty of craft soda is not the actual beverage, but the process of exploration, creativity, and boldness behind each sip. 

NEW TARGET

Gen Z: The bold and creative. They make up 25% of the U.S. population. They're health and ingredient conscious. As they mature, they value customization and independence to make their own decisions. And they want to make the world a different, better place. They'd rather be entrepreneurs than employees.

NEW BRAND POSITIONING

Homemade by Pepsi: craft boldness.


SEARCHING FOR A DISTURBANCE: Craft Case Study

We chatted with some craft beer lovers...


“I love the interesting design concepts and names of breweries and their beers.”

“I like how beer availability changes regionally and seasonally.”

“There is always a new idea being brewed up by a brewer somewhere.”

“Creating diversity and pushing the boundaries of beer. Forming new flavors that are not accessible with mainstream beer.”

 

...and dived deeper into craft soda.
 

"I think there is actually a huge potential for craft cola…

I think products like Caleb's are bringing back some of the cool factor."

PepsiCo CEO Indra Nooyi


Craft soda is about the process.

We broke that down into three pillars to help Pepsi own the positioning "craft boldness."


NEW POSITIONING + PRODUCT UPDATE

We created a new system of Pepsi caps for SodaStream using tiers. Tier 1, the bases, is made of pre-existing Classic caps Pepsi and Sierra Mist. To offer more variety, we also added in Pepsi sub-brands Caleb's and Stubborn soda as craft choices. Tier 2, the toppers, are flavors - like wild cherry, lime, or coffee. Tier 3 consists of home ingredients that consumers already have in their fridge or pantry - like cinnamon or honey - as we encourage them to mix and match tastes for a different craft drink experience each time.


CAMPAIGN CONCEPT: No rules for the tastemakers.

Convince Gen Z that they are the tastemakers, and that Homemade by Pepsi is a way for them to exercise creativity in a fun and tasty way.

(Check out the campaign manifesto I wrote here.)