Live Client Campaign:
Pepsi Co. released a new line of products focused on their Sodastream partnership. The Sodastream is a carbonated water system that gives consumers the opportunity to make sparkling water at home. Pepsi Co. current products are called Pepsi Homemade, which includes syrup pods filled with Pepsi, Cherry Pepsi and Sierra Mist.
How can Pepsi Co. leverage the Make My Own disruption in the beverage industry with their partnership with Sodastream, and build a billion dollar brand in 5 years?
The goal of their partnership is to become a leader in the make my own disruption giving consumers a sense of creating the beverage themselves. But the first problem was that Sodastream machines are not on enough of America’s countertops. Without having a Sodastream there is no need for Pepsi Homemade products.
In fact, with only 750K US households current owning a Sodastream machine, each of those households would have to spend $1,333 per year to create the $1 billion in revenue for Pepsi Homemade.
We reframed the challenge:
Get people to invest in Sodastream as an essential countertop appliance, something they use everyday and becomes habitual.
Pepsi's current products are not the answer
Pepsi’s current products won’t win Sodastream a place on the countertop for three reasons. The first is that the majority of people currently only use the Sodastream to make sparkling water. Second, mainstream brands don’t align with the MMO disruption drivers and finally, soda is trending downward while the other beverage categories are rising.
So whats rising? Energy Drinks.
Energy drinks have the largest annual growth rate of any other beverage category at 14.3%. In fact, at this rate they will surpass coffee consumption in just a few years. These drinks provide the bubbles from soda, flavor from juices, and caffeine from teas and coffee that consumers are looking for.
Energy drinks are a part of millions of Americans everyday lives. But unlike other popular caffeinated beverages there is no appliance focused on making energy drinks.
Solution: The Sodastream can provide the base of sparking water to create MMO energy drinks.
Largest Energy Drink Consumer:
The Most XTREME Energy Drinkers are Young Moms
Young Mom's need for energy
“Older Millennials are going through a lifestyle shift, such as getting married or having children…their interests and priorities are shifting and individuals that require more energy are turning to energy drinks.
- Elizabeth Sisel, beverage analyst
There are 3.5 million of these busy moms who are 58% more likely to consume energy drinks and on average have two drinks a day totaling an average annual spend of $1300 on energy drinks. They turn to these energy drinks to cope with their daily activities. They are putting everyone else’s needs before theirs, are overwhelmed with too much to do, constantly under stress, and under extreme pressure.
But these moms are drinking “concealed in the pantry.”
They feel shame that they are turning to drinks positioned for riding bulls and jumping out of airplanes just to get through the day. It causes them to hide them in their pantry or chug them in their car before entering PTA meetings.
Make the Sodastream and Pepsi Co. partnership Mom's gateway to guilt-free energy.
Zest is a new brand for Pepsi Co. that is positioned as fuel for America’s young moms. Zest solves many of mom’s problems including the need for an energy drink filled with natural ingredients that reflect a healthier lifestyle so the new Zest pods will be filled with natural forms of energy including caffeine, guarana, ginseng, and vitamin B12. The second is that it is a brand moms can get behind because the current competitors marketing to moms are using gender stereotypes such as pink packaging and products called “Her” and “Cougar.” The last is that Zest can become a part of mom’s routine. We have decided to leverage drinkfinity technology that Pepsi Co. already owns because the sleek stylish bottle and ease of use are better suited for mom then the current Pepsi Homemade packaging. Zest is something mom’s can confidently bring into those PTA meetings.
Zest uses Pepsi Co. technology called Drinkfinity. Pepsi Co. has already used Drinkfinity technology in their current portfolio with their partnership with Gatorade. See information and images below.
An advantage to targeting Mom, is she controls the appliances that live on the kitchen counter. By providing her a cost efficient, convenient, and stigma free solution to her energy crisis, the Sodastream will get a permanent home on the counter. As Mom's habit becomes consistent the rest of the family- especially Dad who consumes more energy drinks than mom- will begin to use the SodaStream and Pepsi Co. and unlock the rest of their Pepsi Homemade products.
For decades, Americans have woken up each day and brewed a pot of coffee. But that is changing, as more Americans turn to energy drinks Pepsi Co. and Sodastream have the opportunity to be the energy of the future.