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.'s newly introduced product line- Pepsi Homemade, are syrup pods filled with Pepsi, Cherry Pepsi and Sierra Mist.
How can Pepsi Co. leverage their partnership with Sodastream, and build a billion dollar brand in 5 years?
Soda Catagory hits a 26 year low
US soda consumption has been in steady decline for the past 10 years and former soda drinkers are turning to other beverages to replace their soda habit.
Pepsi VS Coke:
Everyone is feeling the pressure
Coca-Cola has also turned to the make-my-own market to help increase overall beverage sales. Their partnership with Keurig has manifested in Keurig- Kold which ONLY allows you to make "exact replica" of a Coke products at home.
3 major flaws.
High appliance Cost: $369 — or $299 on promotion.
High product Cost: Single-serve pods cost $0.99 to $1.29 for a single 8-ounce cup of soda.
Convenience: It takes 60 to 90 seconds to prepare each drink.
Coke + Keurig
Pepsi + SodaStream
The goal of the partnership is to become a leader in the make my own disruption giving consumers a sense of creation & customization of Pepsi Co. beverages.
We quickly realized a major issue. The low adoption rate of Sodastream machines in the US market.
No Sodastream, no need for Pepsi Homemade products.
So we reframed the challenge:
Get people to invest in Sodastream as an essential countertop appliance.
Pepsi Homemade as a current product offering does not align with current Sodastream mission and beverage category Trends.
They're Looking elsewhere for their fix
Energy drinks have the largest annual growth rate of any other beverage category at 14.3%
Current trends suggests that energy drink consumption will surpass coffee in the near future.
We know that millions of americans are choosing energy drinks to get their caffeine fix.
Energy Drink Growth VS Coffee
Who's drinking energy drinks the most?
Based on the messaging alone, one would assume hardcore, extreme men are the key consumer.
We discovered that energy drink companies have failed to engage with group who individually, is welling to spend $1300 on average annually on energy drinks.
Specifically young/first-time mothers. There are 3.5 million of these busy moms. They're 58% more likely to consume energy drinks than those women of the same age without children. They are most likely to consume on average have two energy drinks a day.
In fact, their purchasing index is 2x higher than:
- Young adults just coming out of college.
- Singles in their 20s and 30s
Young moms are heavy energy drink consumers, but no one knows because it’s mom’s little secret. The stresses of parenting and handling the daily pressures of life are a lot to bear and energy drinks help mom cope. But she doesn’t want to be judged so she keeps it to herself.
Make Sodastream mom's gate way to guilt-free energy
To create a new brand that solvesmom's energy drink problems
FUEL FOR AMERICA’S YOUNG MOMS
Meet the rest of the team:
Ashley Stanfield | Michelle Darnell | Whitney Paul