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INNOVATION SUCCESS RECIPES Anton Borisyuk, Senior Insights Director, East Europe Region
Breakthrough Innovation Business Breakfast
February 1st, 2017.
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PepsiCo: the Largest Food and Beverage Company in Russia*
* According to the RAEX-600-2015 ranking of the largest companies by sales volume by the ranking agency “Expert RA”
** in 2015. Source: PepsiCo 2015 10-K
$2,797 bn
In annual sales**
>20 000 employees
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Innovation is an important contributor to long term success
Innovations could contribute ~10-20%
of category sales
Innovations enabled key market
players to keep / gain share in
challenging economic realities
Affordable innovations offset price
issue and drive incremental sales
Innovations maintain consumer
interest and motivate consumers to
pay premium
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We have robust process for identifying, developing and launching projects that enables to bring successful projects to Market
Idea
refinement
Initial
feasibility Development Scale up
Launch &
learn
Ideas
filter
Gate 3 Gate 4
Doing the
Right Projects
Doing the
Right Projects
Doing the
Projects Right
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We start innovation development by identifying Consumer / Shopper / Market trends, Consumption moments, unmet Consumer needs
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Strong product innovation. Fruktovy Sad Kompot
• Compote is a widely spread traditional home made drink to accompany meals
• Homemade compote is currently consumed in 4% of all beverages occasions
• Unmet need: no ready-to-drink convenient compote solution in the market –
consumers cook it at home, which is not always convenient
LAUNCH RESULTS:
+10% incremental volume
+0.7pp in value share
Fruktovy Sad packaged compote
with taste “from the childhood”
2015
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Strong packaging innovation. Agusha fruit puree in Doypacks
• Mother often spends time with her child out of home: i.e. going for a walk. She
takes some food / snack for the child with her.
• Unmet need: no easy to consume on the go products for children
LAUNCH RESULTS:
Agusha fruit puree sales almost tripled in 2 years
+10pp in segment value share and challenged successfully segment leader
Agusha was the first on the market to offer
fruit puree in Doypacks -
“NEPROLIVAYKA”
2012
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We responded to challenging economic reality via offering value formats to Domik v Derevne consumers in Dairy
UHT milk in TFA
900g Pasteurized milk
1,4L Sour cream
400g330g
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We select projects based on Size, Fit with brand and BASES Probability of long term success
RELAUNCH POTENTIAL SCORE
Good to
Proceed
SNAPSHOT
Good to
Proceed
SNAPSHOT
Good to
Proceed
• Keep current users
• Attract new consumers
“Size of the prize”
Strategy & brand fit
Long term success probability
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Long term innovation success requires consistent support
To “launch and love” From “launch and leave”
Range development Consistent communication
Q4 2012 2014 2016 2013 2014 2015-16
33% in brand
portfolio
+10pp incremental
value share in
segment
Imunele Kids successful growth
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Thank you!
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