Interview


 * Interview **

Chetan Bhanot Sales Director - Convenience & Gas Channel PepsiCo International 5600 Headquarters Drive | Plano | TX 75024  Telepone: +1.972.963.6522 | Email: chetan.bhanot@pepsico.com

**Question One:** Do companies such as Pepsi use hidden messages and techniques to get consumers to buy their products? If yes, please explain. There aren't any "hidden messages". We set a brand strategy or targetted campaign with a certain message (that is not hidden) but we use a 360 degree approach which hits the consumer in multiple ways so the message is re-inforced.

Do these products use the same hidden message and techniques on or are they all unique depending on the product? Please explain. (Refer to above as well). Depending on the brand and the target audience, we'll have a different message or campaign over the course of the year. Like right now, Pepsi is all about the pepsi refresh project where we're giving away millions of dollars for ideas to better the world (and consumers vote on the best ideas each day).
 * Question Two:**

How much does Pepsi spend on consumer research a year? I don't know that answer. (Refer to question six)
 * Question Three:**

Can you comment on some of the methodologies that they use in their research? We split reseach into two areas: Primary and Secondary. Primary is research like focus groups, sampling, questionairres, interviews etc… This is direct contact with the consumer or shopper. Secondary is about take consumer data and stats from third party organizations like IRI and Nielsen to derive trends, opps, gaps, etc.
 * Question Four:**

How large is the 'consumer' research team at Pepsi? BIG ... Pepsi has a number of companies all over the world, so it's hard to determine a precise number.
 * Question Five:**

What do you think is the most effective medium Pepsi has when reaching out to its customers? (e.g.: Internet, TV, etc). This year we moved away from Superbowl TV advertising, the first time in 23 years! Now we are moving towards more digital/social media as this medium is what our consumer uses mostly and resonates with. For instance sites such as:(Facebook, Twitter, Youtube, blogs, targetted emails, etc…). This is expected to cost us around $20M, which is significantly less than the cost of our Superbowl ads last year estimated around $33M.
 * Question Six:**

How much effort is put in terms of time & money spent in launching a new product at Pepsi? Launching new products in our industry is a huge growth driver each year. Getting it right is extremely important or else the company suffers a major fall. There's a lot of time upfront spent on determining the white spaces based on trends, developing different concepts, testing them, making sure the financials work and then rolling them out through the sales system.
 * Question Seven:**

When dealing with Pepsi products what techniques are used to increase sale of product? The primary sales drivers are similar to the 4P's of marketing: Product (make sure you have relevant assortment), Price (at the right price points), Place (with the right merchandising support in store with displays and appropriate space on shelf) and Promotion (timing, concepts and in-store support).
 * Question Eight:**

How do they use consumer feedback to enhance their product in the eyes of the consumer? Consumer feedback is one element that is taken into consideration. Impacts are made towards taste preferences, packaging preferences, social responsibility in terms of the ingredients we use and the environmental impacts of how we make the product.
 * Question Nine:**

Does Pepsi & other grocery stores collaborate to discuss the proper product position & techniques that should be used to gain consumer attention? Yes… Indeed, there's a high level of dialogue between the supplier (us) and the customers (grocery stores). The only thing that does NOT happen during this ongoing comuunication process is any type of price fixing. The final retail pricing decisions are in full control of the grocery store.
 * Queston Ten:**