PepsiCo Unlocks Granular Growth Using a Data-Driven Understanding of Shoppers
Learning Objectives
- Explain why PepsiCo needed granular shopper insight as growth slowed, SKUs multiplied, consumer preferences fragmented, and retailers advanced their own analytics capabilities.
- Distinguish the PepsiCo Demand Accelerator from a conventional analytics center of excellence by focusing on its commercial accountability for sales, profit, and retailer partnership value.
- Trace how PepsiCo combined enterprise data, external shopper data, cloud analytics, and machine learning to uncover latent demand by shopper, store, product, and occasion.
- Evaluate how PEPWORX℠ helped PepsiCo and retailers co-create value through joint business planning, targeted launches, localized assortment, space optimization, and category recommendations.
- Consider how PepsiCo could extend shopper insights into supply chain execution, frontline selling, local market responsiveness, and more automated retail action.
Abstract
In 2019, PepsiCo was a $65 billion global consumer packaged goods company that offered a suite of data analytics capabilities called PEPWORX. The capabilities enabled PepsiCo and its retail customers to unlock granular growth in the marketplace by helping users of PEPWORX better understand how to optimize store-level assortment and total store space, manage marketing dollars more effectively, and successfully launch and manage innovative marketing programs. PEPWORX was the product of a centralized unit at PepsiCo called the PepsiCo Demand Accelerator, established in early 2015, which helped the company build an advanced analytics platform, a large anonymized shopper-level data set, and an array of information solutions, ultimately packaged as PEPWORX. Over that time, the PEPWORX capabilities supported PepsiCo in transforming the nature of its retail customer relationships from transactional to collaborative.
Appropriate for the Following Course(s)
data monetization, data management and analytics, marketing, customer partnerships, and organizational design
THERE IS NO TEACHING NOTE FOR THIS CASE STUDY.