Gatorade's line of performance drinks adds over 40 years of rehydration & sports nutrition
research to the PepsiCo portfolio
Our Corporate Philosophy
Refresh Refresh
Hydration Enjoyment Sustenance Enjoyment
Energy
Energy
Serviced By Muscular Brands That Enjoy
Consumer Preference and Loyalty
Built Through Superior, Consumer-
Validated Propositions, Rooted In Insight
And Supported By A Robust Information
Ecosystem
The re-
shaping of Community
Community Increasing
culture, Transformations
Transformations focus on
community, &
Health
Health &
& Wellness,
what it means Wellness
Wellness though low
to belong evidence yet of
walking the
talk
Customization &
Shorter attention
personalization,
time spans,
spurred by
unprecedented
increased
exposure
individualism
Brand Platforms
Declined trust in are
Corporations - becoming crowded
demand for spaces –
more information Cricket is activated
by > 130 brands!
Consumers Are Now In Control
The Rules of Engagement Have Changed
Altering the Power Equation Between
Advertisers & Consumers
Much Of This Is Powered By A Changing
Media Landscape
+ MANY-TO-MANY
My Media
ONE-TO-ONE
Consumer control an
Niche Media
Mainstream Media ONE-TO-FEW
engagement
Social Media
ONE-TO-MANY
Personal Media
Segmented Media
Mass Media
-
Media Today Is Feeding Consumers’
Appetite For Content…
…But Also Affiliating Them To Powerful
Ideas
Traditionally, Media Distribution Had A
“Top Down” Structure
broadcaster
Content jumps…
Consumers “broadcast” …between ...between
to other consumers platforms… geographies
through blogs, BBS and
social networks.
movie
gets
uploaded
then
downloaded
Source. Wikipedia.org
Social Media is
about people having
conversations
online..
The Social Media Landscape Today Is A
Powerful Enabler Of The Changing Conversation
Types of Social Media
• Blogs ( web-logs)
• Emerged in the Mid 90s; Simple online diaries - by individuals, corporates
• Micro blogs
• Twitter fastest growing social media brand
• Instant messaging, news/image sharing, job board
• Continues to evolve as a real-time communication tool
• Social Networks
• Connections
• Music, sports, politics, sex, hobbies
• Sub-category includes customizable social networks – eg Ning, KickApps
• Video/Image sharing sites
• Upload and share; The blurring of ‘public’ vs ‘private’
• Social Media Aggregators
• ‘FriendFeed’, ‘socialthing’
• Centralize users’ various profiles; manage multiple conversations from one location
• Social News Aggregators
• Submit links to content on other websites
• Ranked by discussion it evokes
• Social Bookmarking sites – Folksonomies
• Bookmark and share useful web pages
• Wikis
• Creation and editing of interlinked web pages – collaborative websites
• 100% UGC – By the readers
Media Consumption Is Evolving From Lean-
Back, Captive to Lean-Forward, Engaged
Blog, Gaming,
lean forward Newspaper, RSS – Feed, Contests, Social
Magazines Internet Networking
Networks
Just 2 degrees of
separation
on facebook results in
an exponential
multiplier
31%
India 9%
Australia Korea Singapore
Malaysia
16% of those online spend less than 5hrs a week consuming traditional
media
Ironically, many of these ‘online only’ consumers are still consuming the
same content – i.e. Watching TV shows, listening to the radio and so on.
Yet they are doing it digitally.
73% of internet
users search
1+ Bn queries Over 4.8 mn Clicks
the web*1
per month On Search Ads *1
with 53 Searches
per User *2 Search revenue
projected to touch
$120 mn in 2010
from $50 mn *3
* Source:
1. IAMAI 2008
2. comScore qSearch (June 08)
3. Industry Sources
A Significant Growth in ‘Prosumerism’…
32
Taiwan
Singapore
Malaysia
India
China
Australia
Total
36,00,000,000: Photos
archived till June ’09.
That’s roughly 1 photo for
every two people on this planet!
• … that’s engagement
The Wachowski Brothers who produced The Matrix supplemented the first chapter of
their film trilogy with two more films; Enter the Matrix, a video game that revealed
critical events and interactions offscreen before, and during the events of the 2nd
and 3rd films; The Animatrix, a series of animated shorts from acclaimed anime
directors that covered critical background events and introduced minor characters
featured in the later films; and a compilation of Matrix comics from renowned comic
artists and writers.
Defining Transmedia Storytelling
• Transmedia stories are those “which unfold across multiple media platforms
with each new text making a distinctive and valuable contribution to the
whole”
• Each medium should do whatever it does best
• At best, each part is self contained to make it accessible on its own terms,
without the rest of its components
• The vision needs to be consistent and unified; if it is redundant or self-
contradicting, participants will notice
• Can attract multiple audiences by using different approaches in different
media, to reach each group
• The logic shifts from “licensing” to “co-creation”
• Can form communities when it brings people and gives them something to do
From Transmedia Storytelling
Transmedia Planning
Advertising Advertising
Interactive Public
Interactive Public Experience Relations
Experience Relations
Person Person
Brand
Community
Central Idea
Person Person
Direct Direct
Retail Retail
Marketing Marketing
In 2001, BMW stunned the ad world by investing in short films which had nothing
to do with their product
The idea was to give film directors a BMW car around which a compelling short film was to be made.
Many of the tales centered on life-and-death chase scenes, but several were humorous or even melancholy.
McDowell ( Mktg VP, BMW) figured if The Hire, took off and the films were downloaded from BMW's Web site
by 1 million to 2 million viewers, BMW would chalk up the same number of eyeballs as a snappy advertising campaign
aired during the Super Bowl, but would reach a higher percentage of BMW-type customers: Progressives with a nose
for cinema, technology, and high bandwidth.
If you really understand your consumer, you can be very clever about how to communicate.
You can change the whole paradigm
The buzz started slowly with the first film but grew to avalanche proportions by the time Madonna's short
comedy film about a cranky diva was released, overwhelming BMW's expectations and forcing the automaker
to add servers as fast as it could.
But it didn't stop there. As the short-film gambit rocketed around the blogosphere, national TV broadcasters
flooded McDowell's office with requests for interviews on CBS, Entertainment Tonight, and Fox News.
The novelty of an automaker producing films fanned public interest and stoked downloads.
After one year, the number of viewers who had visited BMW's Web site to download The Hire shot to over 21 million,
and with three more films added in 2002, it rocketed to 100 million, sparking a Harvard Business School case study.
One million enthusiasts ordered a DVD with all eight films.
http://www.youtube.com/watch?v=1pd74It‐yVo&feature=related
So What Does This Mean For Brands?
Brands will be “owned” by consumers more
than ever before
Think about partnerships with brands who have similar core values
• Total page
views 2.58 mn
• Total unique
users 6.6 L
http://www.youtube.com/watch?v=FPXhDGoi6yM
When
Pepsi
branded
the
Unstoppable
generation…
Youngistaan
The Youngistaan Portal
Page Views – 2.63 MM; Unique Users – 1.08 MM; Avg Time Spent – 8.1 mins
An Experience Gateway For Youngistaanis;
A Key Multiplier of the ATL Idea
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When Nike created the NIKE + RUNNING
COMMUNITY
http://www.youtube.com/watch?v=nhStKDFGv_s
When You Can Use The Internet To
Get Off The Internet
Source: meetup.com
Meetup helps groups of people with shared interests plan meetings and form
offline clubs in local communities around the world. With more than 2,000
groups that get together in local communities each day, Meetup is the
world's largest network of local groups. Meetup currently has 4.7 million
members in 3,601 cities worldwide, 46,315 local groups, 4,916 Meetup
topics and facilitates 102,000 Meetups monthly. Their tagline? “Use the
Internet to get off the Internet!”
2) SHINE THE SPOTLIGHT ON
YOUR CONSUMER
Doritos Presented Consumers With The
Biggest Stage Ever To Showcase Their
Creativity – The Super Bowl!
Visit http://www.crashthesuperbowl.com/
Kurkure Gave Its Evangelists The Ultimate
Sign of Respect – Featuring Them on Their
Packs
• Over 50mm
Kurkure packs
carried
pictures of
winners along
with their
recipes
• >1L entries
received
• Positive impact
on both
Volume and
share of tea-
time
consumption
Pepsi My Can Leveraged User Passion To
Give a New Face to the Pack… And The Brand
http://www.youtube.com/watch?v=-poiJFcdCXo
3) CUSTOMIZATION
Lays Accelerated Consumer Engagement With
Its New Flavors Through Consumer Advocacy
Dewmocracy
“you want to vote now. Dew it”
Mountain Dew Is Leveraging The Collective
Intelligence Of Its User Base to Architecture The
Brand: From Flavor To Packaging Graphics
http://www.facebook.com/mountaindew#/mountaindew?v=app_11007063052&viewas=0
http://www.youtube.com/watch?v=n3mphZrRFgk
4) BREATHE LIFE INTO THE BRAND
EXPERIENCE
Honda staged a live three-minute TV ad showing a
team of skydivers demonstrating Honda's current
marketing idea 'Difficult is worth doing'.
Pepsi Engaged With Youngistaan By Making The
Consumer the Chief Architect
WHATS UR WAY?
Interrupt
Engage
Entertain
5) INVOLVE YOUR CONSUMER
Pepsi’s Gave its Consumers A
Collective Voice
refresheverything.com
An open letter
The idea was to create an OPEN LETTER to the President, simply by asking
Millenials ( core TG) the question:
What would you say to the man who is about to refresh our nation?
The initiative capitalized on the excitement and momentum the entire country
was feeling.
7,00, 000 visits to refresheverything.com, Over 700 videos
(> YouTube benchmark of 200 videos); over 4,000,000 video views
www.pepsicotastethesuccess.com/case_study_AV
6,000,000 unique Facebook visitors; On Jan 22nd, #1 most viewed sponsor channel
TOI Led A Movement That Sparked A
Nation’s Imagination
http://www.youtube.com/watch?v=pgHyjMgPi2Q
Tata Tea Became A Force For
Social Change
http://www.jaagore.com/
http://www.youtube.com/watch?v=JXWdhB1xYic
6) CONNECT THROUGH ISSUES THAT ARE
IMPORTANT TO YOUR AUDIENCE
Quaker Oats Partnered With TOI To Raise
Awareness… And Action…To Promote Heart
Health
Sunsilk Created A Space For Young Women
To Connect On Issues In Their Life
Dove Made Its Brand Hugely Relevant
Culturally, By Challenging Stereotypes
http://www.campaignforrealbeauty.com/
http://www.youtube.com/watch?v=oYfwIAWWH6M
7) ENGAGE, INTERRUPT,
INFLUENCE
Pepsi Max In UK Sharply Jump-shifted Salience And
Affinity By Evolving Their Engagement Model…
From To
Communicating to consumers Engaging with them
… Bringing The Story Alive By Being Part
Of Their Consumers’ World
On-line
streaming Mobile
http://www.youtube.com/watch?v=epsgsfuIN4Y
Diesel’s Digital Campaign Positioned The
Brand As Cutting Edge
http://heidies.com/demo2/
McDonald’s Alternate Reality Games
Involved Consumers Without Making Them
Feel “Marketed To”
An alternate reality game (ARG) is an interactive narrative that uses the real
world as a platform, often involving multiple media and game elements, to tell a
story that may be affected by participants' ideas or actions.
The Lost Ring is an alternate reality game, (ARG) revolving around a fictional
Olympic sport that disappeared 2000 years ago that was created by McDonald’s
as part of their marketing for the 2008 Olympic Games, in Beijing, China.
Read the case at http://www.thelostring.com/
The Key Challenge For You
PepsiCo’s View On Building Brands
• Despite the large population, total online users are only 57 million ( 5% penetration)
• 37% of the users are from Cyber cafes, driven by the growth of online gaming
• Broadband has grown 83% from ’07 to ’08. However, 512 mbps is considered
broadband
• Local language sites have grown to 34% of market
• Ecommerce is a USD $2000 Million industry of which travel contributes to 80%
• At 400 Million mobile users, India is second only to China
• 20% of mobile users are mobile internet users. Most have their first internet experience
on their phone.
Some pointers for you as you
work the case…
3. The tale of two Indias
• The TG is not a homogenous group, with key differences between metros
and non-metro cities. What’s the new language to connect with both these
groups?
Young Adults 19-24 yrs, Metros: 4.1 MM
Characteristics
Prefer English to Hindi; Experienced online users
Offline
Asset Ownership: Own Mobile, Internet Connection at Home, Bank Accounts more than other segments
Offline
More computers/laptops than metro counterparts Source: Juxt Consult Youth Online Report 2008;
Low cable TV connection/DTH compared to metros Metros: Delhi, Mum, Kolkata, Chennai, Bglore,
Hyderabad, Pune, Ahm
Some pointers for you as you
work the case…
Teens 13-18 yrs, Metros: 0.6 MM
Characteristics
Comfortable with both English and Hindi
Second maximum number of entrants from this group
Offline
Very light users of mass media
Maximum % of ownership of computer/laptop than the other segments
Offline
More iPods than young adults and metro counterparts (on a % basis)
Implications
•Traditional Media
• Standard TV advertising has seen a dip in effectiveness, but appetite for
content is growing
How do we use TV to satiate the hunger for content in a way
that is linked to our brands?
• Slide 96 has 3 questions posed to you. Your team must address all
three.