Applied neuroscience: PepsiCo – Testing product launches
Stephen Springfield Sr and Aaron Reid
PepsiCo and Sentient Decision Science
Admap: Applied neuroscience
This article is from the September 2014 issue of Admap, which focuses on the application of neuroscience in marketing.
Sentient used implicit response testing, which measures the degree of conscious and subconscious association of attributes and emotions with brands, products, packaging, concepts and advertising, to provide PepsiCo with a roadmap for brand extension.
The business problem
PepsiCo has 22 megabrands, each generating US$1bn in revenue, or more. Most of these have become iconic and established a persona that stands for more than the original product that they represent. Within the salty snack segment (i.e. Frito-Lay brands), PepsiCo captures nearly 65% market share. This kind of dominance with a house of brands makes it difficult to grow one brand without cannibalising others. To meet these challenges, PepsiCo has become an innovation force by continually investing in new research and development to find new areas for growth. One of the greatest areas of latent potential is to extend these megabrands into new and adjacent categories.