Transforming Breakfast for Indian Consumers

PepsiCo - A Global Powerhouse P iC Gl b l P h

In our field of play And on the FMCG landscape

PepsiCo Global 2010 F&B Revenue: US$ 57.838 BIlion

A Portfolio Promise Of Refreshment, , Fun & Nutrition

A spectrum of beverages delivering fun and refreshment p g g

Snacks offering plenty of good food and 'good fun'

Dairy Tropicana, the best of fruit The Quaker range of healthy food choices

Re-hydration and sports nutrition expertise

A Culture Of Excellence That Builds Powerful Trademarks, While Incubating Innovation

PepsiCo India: Young, Vibrant & Upbeat Young

2010:20th Anniversary Strongmarketshare 40plantsacross Diverseportfolio Employmentimpact p y p 180,000 >$1Bninvestments $

Powered By A Soaring Vision

TOMORROW BETTER THAN TODAY

Guided By A Strong Values Compass PERFORMANCE WITH PURPOSE

Committed to Building An Organization Recognized for

Thoughtleadership Thought leadership Innovation

ConsumerRegard Consumer Regard

StakeholderTrust Stakeholder Trust

We Are Building A Portfolio To Address A Range Of Beverage And Snack Needs

Beverage Need States
Refresh

Snack Need States

Refresh

Hydration

Enjoyment

Sustenance

Enjoyment

Health

Indulgence

Health

Indulgence

Nourishment

Transformation

Nourishment

Enhancement

Energy

Energy

Driven By Muscular, Consumer-Preferred Brands Muscular Consumer-

Our Two Building Blocks

1

RELEVANCE

How our brands integrate into consumers lives

Resonant with their values, attitudes, lifestyles Reflective of their physical and emotional needs, today and tomorrow Integrated into their daily rituals

INNOVATION

How we craft our portfolio to be

Aligned with consumers beverage and food Need-States Appropriate for the Occasions they consume us in Cognizant of consumers concerns on Value, Health & Affordability

Our Third Building Block

3

THINKING OUTSIDE THE BOX!

To Find A Unique Position In The Consumers Mind, Consumer s You Must Ignore Conventional Logic Conventionallogicsaysyoumust findtheconceptinsidetheproduct. find the concept inside the product Thatsnotnecessarilytrue. Lookinsidetheprospects mind The Th Uncola id ideawasnotinside i id the Itwasinsidethecoladrinkershead!

Conventional Logic Says To Successfully Market Your Product, You Have To Integrate It Into Existing Rituals
ConventionalApproach StepA:IdentifyaLargeFoodOccasion:TeaAccompaniment StepB:Developproductswithhighcomplementarity Step3:ProceedtopaytheMaximizingConversionsgame

Kurkureflippedthelogic
ItcreatedawholenewRitual, challengingandsubvertingexistingTea ritualsandcodes(Tea+Sweetbiscuit)andfocusedentirelyaround romancingitsuniqueproductexperience

It created a whole new tea time experience wicked multisensorial undeniably Indian Itcreatedawholenewteatimeexperience wicked,multisensorial,undeniablyIndian ItintroducedadelightfullyidiosyncraticFamilythateveryonewantedtobeapartof! TeaTimeswereneverthesameagain!

Subverting An Orthodoxy Can Reap Juicy Dividend Orthodoxy xy The mango experience is one of childhood nostalgia . Its about playfulness, fun with the family, and the honest-to-goodness taste of ripe, juicy mangoes. Mango is The Familiar Taste of The King Of Fruits

Slice Sli
The mango experience is a highly indulgent one. Its taste, smell, colour and f l seduce the senses making it ll l d feel d th ki irresistible to God and man alike. Mango is so much more than a fruit. It is pure sensual pleasure.

When The Going Gets Tough, The Tough Re-write g g , g ReThe Rules

TurningAdversityintoAdvantagewithflair& withclassicPepsiIrreverence

How Do You Stamp Your Ownership Of A p p Platform So Huge, That Its A Religion?
Create The h Symbols Give Them The i h m h Chants

Cricket The R li i C i k t Th Religion Of a Billion

Give Them A Gateway to iv h m y o Their Gods

How Do You Constantly Refresh & Revitalize This Association Such That You Own The Platform Differentially, Powerfully?
Cricketisn'twhatitusedtobe
TEXTBOOK TEXTBOOK TECHNIQUE PERFECT BOWLING BOWLING AND FIELDING ACTIONS COLD, MECHANICAL UMPIRING

NewagecricketisCricketwithPEP! Irreverent,Unorthodox,Fun,CHALLENGING,Inclusiverewritingtherulebook
UN ORTHODOX TEXTBOO SHOTS K TECHNIQ UE

WELL BEHAVED, INNOVATIVE KNOWLEDGEA NEW BOWLING BLE ANDFIELDING AUDIENCES

TECHNIQUES

INFORMAL COLD, UMPIRING MECHANICAL UMPIRING

PEPSI CELEBRATES THIS DYNAMIC CHANGE IN CRICKET AND YOUTH ATTITUDE

GIVE INDIA A NEW LEXICON

Result: Highest Top-Of-Mind Association With The Top-OfWorld Cup

17
CRICKET SURVEY FINDINGS: ICC WORLD CUP

9 7 6 6 6

s i

o f

i e t r

a i

r o

l a i

Our Case Study Issue Today Requires To Think Outside The Box

YOU

Case Summary
TheFoodIndustryispoisedontheedgeofsomesignificantevolutionarychanges. h d d i i d h d f i ifi l i h ConsumerawarenessoftheimportanceofHealthierLifestyles,andtheir receptivitytomakingprohealthchoiceshasincreasedsignificantly. Althoughactionisyettoechointent,andtheleadingparameterofHealthformost consumersisstillFreedomfromDisease;Vitality andWellnessareconceptsthat willsoonstartpercolatingdownthesocioeconomicladder. will soon start percolating down the socio economic ladder Thisawakeningcannothappensoonenough,givenIndiasalarmingscorecardon Health,anditsgallopingstatisticsonlifestylerelateddiseases. Health and its galloping statistics on lifestyle related diseases TwoPepsiCobrandsareperfectlyintunewiththeconsumersneedforVitalityand Wellness Tropicana, theWorldLeaderinJuiceandQuaker, theWorld sNo.1 Wellness Tropicana the World Leader in Juice and Quaker the Worlds No 1 brandedhotcereal. Thecurrentlynascentmarketforthesecategorieswillrequireseveralimportant The currently nascent market for these categories will require several important unlocksatboththeconsumer,andthecategoryend.

Understanding The Consumer

Indias Journey From A Protectionist Past To A Resurgent, Consumerist Economy Has Fashioned the Values And Attitudes of Key Consumer Cohorts

Kids(612)

Millennials (1328)

YoungFamilies(2939)

Boomers(4060)

Born: B

After1999 Af 1999
Indiamakingits presencefelt

19991983 1999 1983

Globalisation PrideinIndia Communication Technologies Diversity Economic Boom EconomicBoom Experimentation Materialism Individualism UnabashedConsumerism

1983197219511971 1983 1972 1951 1971

Globalisation MediaPenetration Consumerism,Mobile Telephony SteadyEconomic Growth Generationoftransitioners Thrift&ValueOrientation, butPropensitytoSpend but Propensity to Spend Highachievers Indiainevolution EconomicUncertaintyto Progress

Key Influences

Technology leapfrogging Environmentand Conservation EconomicsofPlenty Competitiveness

Consumerism Sociocentrism EarlyAdopters

Values& Attitudes

Materialism Mecentrism Confidence

For The Purpose Of This Case, We Shall Focus On Some p Case, Key Segments Within These Cohorts

Millennials(1328yrs.) ( )

YoungFamilies(2939yrs.) ili ( 29 39 )

Boomers(4060yrs.) ( 0 60 )

24 50years 24 50 years

Letstakeacloserlookatthem Lets take a closer look at them

Defined as much by a mindset as by birth year, Millennials are people who were shaped by demographics, parenting styles, demographics styles economic conditions and prevailing cultural norms

TheMostImportantInfluencerFor Millenials:TheInternet HungerToExpandHorizons, Hunger To Expand Horizons FearOfBeingLeftBehind

*Imagecourtesy MTVYouthStudy

FlagBearersofOptimism, Adventure

Families Are The Anchor Of The Indian Socio-Economic Fabric. SocioStructures Have Evolved, However Kinship Remains A Key Need..

TheChurningOfTradition: Roles,FoodHabits

TheFamilyisstillthescorecard,even The Family is still the scorecard, even fornewage,individualisticmoms

TheResource Rich,TimePoorFamily: needforcopingmechanisms

Boomers A Large, Heterogeneous Group With Differences In Quality Of Life/Attitudes Towards Life/Physical & Mental Quality Abilities To Negotiate The Gains & Losses In Life. Theyvaryintheirattitudes&valuesystems,butshareaworkhorseculture,are Theyvaryintheirattitudes&valuesystems,butshareaworkhorseculture,are selfmotivated,value selfmotivated,valueconscious,pragmaticandfamilyoriented.

AgeisJustaNumber ManagingAgev/sFightingAge

Reinvent,Rediscover,Rejuvenate

TheWatchYourHealth/Futureresponsibility

Positive Food Attitudes Develop In Mid-20s When MidBusy Lives Impede An Active Lifestyle
2024 2529 3034 35+

Firstjobbersjustbeginningtoget intoorganizedroutines Healthmeans: Beingontopphysically& e g o op p ys a y mentally Healthroutes: Believeinsports/exercises forhealth&fitnessandstart lookingatlighter/safer versionsoffoodanddrinks Healthbarriers: Health barriers: Highconsumptionoffast Food,lowconsciousnessof Nutritionalcontentoffood, Ignoreillhealth/avoidcheckups Healthtriggers: WOM,BuyBestknownbrands

ConsciousHealthchoices Healthmeans: Beingontopphysicallyand mentally Healthroutes: Foodtakesprecedenceover Exercise,Choosenutritious options,thinkofcalories, DietingandYogapreferred Healthbarriers: Unabletocompletelyavoid Unable to completely avoid Fastfood,feelstressed,fearill healthwillcomeintheway Ofperformance Healthtriggers: Keenonhavingahealthydiet, BuyBestknownbrands

FamilyNutritiontopsthe Healthagenda Healthmeans: Nothavinganypainor disorder Healthroutes: Periodichealthchecksups becomeimportant,beliefin become important belief in Alternativemedicinegrows, Dietcontrolthepreferredoption Healthbarriers: Difficulttomaintainorganized routines,caloriecountinga chore,busylifestyle Healthtriggers: Health triggers: Healthinownhands,home madesolutionsthebest

Mostconsciousaboutindividual health Healthmeans: Beingontopphysicallyand Being on top physically and mentally Healthroutes: Calories,Cholesterolafocus, Reducemeat,Homeopathy& Traditional,checknutritional Content,walking,dietcontrol Healthbarriers: H lth b i Believehealthisaboutluck, Brandsbecomelessimportant Healthtriggers: Healthproblems,Family nutrition

Health Also Manifests Differently By Gender - Women Believe In Regimen & Advice While Men Need Performance Benefit
Believethat busylifestyles leavelittle spaceforhealth 71%claim healthyphysical health,60%on mentalfitness Morelikelyto More likely to followawell organized routinefor health 69%claim healthyphysical health,58%on mentalfitness

Healthmeans Health means nothavingany painordisease

Believein sports/exerciseas sourceofhealth, followedbyhealth followed by health checkups

Healthmeansbeing topofphysicaland mentaldemands

Foodthebiggest sourceofhealth, followedby followed by alternativemedicine

Healthbarriers: HigherconsumptionoffastFood,ignorehealthproblems, Selfmedication Healthtriggers: Health triggers: Healthproblems,diet,indulgenceWithcontrol, Periodicalhealthcheckups

Healthbarriers: Worryaboutfamilynutrition,Feelmorestressed,butmore likelytoignoreproblemstilltheygoaway Healthtriggers: Askpeopleforadvice,useHomemaderemedies

Food & Beverage Category Dynamics

Food And Beverage Trends Continue To Be Shaped By Fundamental Drivers

Health

Sensory

Convenience

Comfort

Individualism

Two Recurrent Themes In Particular, Are Expected To Intensify As The Market Evolves
ShiftinH&WAttitudes Moreproactive Healthasameansoftransforminglife Womensnutrition TherapeuticNutrition Convalescence&SlimmingProducts Convalescence & Slimming Products MealDeconstruction Blurringboundaries:MealySnacks Bl i b d i M l S k andSnacky Meals GrowthofQuasiMeals Foodonthego,processsimplifiers DrinkableFood

Health

Convenience

Outlook:TheIndividualismthemewillalsogrow.AnillustrativeexampleistheIndianpersonalcareindustry,where productsaretailoredtoage/gender/needstatespecificrequirements.Suchproductselectionbehaviorisexpectedto becomefarstrongerinF&Bchoicestoo. 34

Regional Cuisine Will Continue To g Be A Big Driver

The

to o adventurous.

d s desire

e pe experiment e

and d

be

The desire to hold on to or rediscover our

regional cuisine.

The Th end result: A melting pot of i d l l i f ingredients, di flavors, textures and a possible

reinvention of what is our food.

Categories Investing Behind These Trends Are Experiencing Strong Momentum

Source:ACNielsen.Growthis10/09

36

F&B Brands Are Leveraging Functional g g Messaging To Build Adoption

Promise of larger benefit
Oil, atta, cereal : Heart Care

Key dietary ingredients

Packaged Salt: Iodine, low sodium

Endorsement by Authority
Chewing gum : Indian Dental Association

MFD cereal : Special benefits MFD, ( women, kids)

Cornflakes: Kelloggs Iron shakti

Juices : Protein foods and Nutrition Ju ces o e oods a d u o

Biscuits : Healthier snack

Chywanprash : Ayurveda

Horlicks Nutrition Academy / Saffola Heart Health foundation

However, Food Marketing Requires Many More Triggers

Our Relationship With Food Is Unique Driven As Much By Our Taste Buds

As It Is By Our Cache Of Childhood Memories As

Lets Examine Some Levers Brands Employ To Drive p y Category Habit

Integrationinto 2 Rituals

Ingredient Insights I i h

Category Adjacencies

Occasion Occasion Build

Brand Brand Semiotics

Strategic Strategic Partnerships

1 Rit li i Ritualizing The When & How Of Consumption Th Wh H C ti

Corona + Lime

Axe Spray More Get More

Wrigleys Better to Share

Allen Solly Friday Dressing

Kit Kat Fingers & The Kit Kat Break

Oreo Twist..Lick..Dunk Starbucks Third Place

Movies , Popcorn & Pepsi

Shake the Bottle, Wake the taste

After Eight Post Dinner Mints

Horlicks Epang Opang Chapang

Tim Tam Slam

Interestingly, Some Rituals Are Born Organically, And Not As The Result of A Marketing Effort Gatorade Shower

At the end of an important win, American football players show their gratitude and playful relationship with the coach by dunking him with a bucket of d l f l l ti hi ith th h b d ki hi ith b k t f Gatorade, in a ritual known as the Gatorade shower.

Apple Unboxing The fanaticism surrounding the brand, its

product range and the beautiful shells they arrive in, led to a phenomenon called Unboxing

Facilitated by sites like YouTube where enthusiasts filmed themselves unveiling their new phone/computer to share online.
Samsung produced an amusing viral spoofing this phenomenon. Check it out at http://bit.ly/samsungunbox

Some Organically Born Rituals Become Part Of g y Culture: Volkswagen Slug Bug

A simple game - when you see a Beetle on the road, you're supposed to elbow the person next to p g y ,y pp p you while yelling out, "Slug Bug!" Some kids keep a running tally going to see who can spot the most. The "no tag-backs" line is added by more seasoned players, meaning, You Can't Elbow Me If You See the Same One! Dating back to the 1950s when the Beetle really got popular in America

See how VW leveraged it in their 2010 Super Bowl commercial http://www.youtube.com/watch?v=7I_pOUueifI

In esting Brand Ingredient 2 Investing The B and With An Ing edient Insight

Pears Glycerine Kurkure made with familiar, wholesome ingredients- D l /R j i di t Dal /Rajma

Kurkure Xtreme Seriously Thoda Zyaada

Nimbooz - The Asli Indian Refresher Garnier Shampoo + Oil Tata Salt Iodine + Iron Leveraging consumer evangelism tell us your flavor

Lays Chaat Street the taste of India

Horlicks

Womens Horlicks because womens nutritional needs are different

Focusing on Ingredient Efficacy, Gatorade Turned The g g y, Science Of Sweat Into A Cultural Phenomenon Aphenomenonthatgrewfromthepracticefieldsofcollegefootballinto atrueiconofthewayweplay,watch,andexperiencesports

BedrockedinScientificIntegrity&ConsumerEducation

Three Building Blocks Are Guiding the Brands Future Brand s

Ingredient Insights Can Be Leveraged to Unlock Both E d B h Ends Of The Value Spectrum Th V l S HereshowtwoverydifferentPepsiCoBrandshaveleveraged IngredientInsights

Naked Juice A Super Premium Juice communicates its p unique point-of-view on quality, taste and love of life point-of-

Lehar Iron Chusti An Affordable Snack Aimed At Addressing A Key Health Issue Iron Deficiency

TowardsitscommitmenttoreduceirondeficiencyinIndia,PepsiCoIndiaisconcentratingitseffortsonapilotprogram intwoAndhraPradeshtowns,wheresevenoftenadolescentgirlssufferfromirondeficiency. in two Andhra Pradesh towns, where seven of ten adolescent girls suffer from iron deficiency. Intensiveschoolandcommunitylededucationalprogramfocusingonthegirlchild. Educationprogramledbyeducationalfilmonsymptoms,causesandexplanationofirondeficiency Simplebehaviourchangeandnutritiontipstoreduceirondeficiencyovertime. Lehar Iron Chusti an extruded snack and a sweet biscuit that are richly fortified with EDTA iron delivering 25 LeharIronChusti anextrudedsnackandasweetbiscuitthatarerichlyfortifiedwithEDTAiron,delivering25 %oftherecommendeddietaryallowance(RDA)ofironand50%RDAofVitaminB1,B12andFolate each. Productsmadewithwholesomelocalingredientslikesoya,peanutsandjaggery AffordablepricingatonlyRs 2

A Rich Ingredient Insight Combined With An Evocative Cultural Insight, Results In Breakthrough Communication
Layswasfacedwithcategoryandenvironmentrelatedheadwindsthatwere constraininggrowth. i i h TheTask:Toeraseconsumermisperceptions,bytappingintoconsumersdeepseeded loveforthisiconicbrand.

Inside every bag of Lays is a moment of happiness that reminds us that the best things in life are simple g p

Happiness Is Simple

Connect Lays To The Community By Communicating A Little Known Fact Lays Potato Chips Are More Local Than Local Potato Chip Brands

Remind Consumers That Happiness is A Simple Pleasure, Made With Simple, All Natural Ingredients

Exploiting C t Category Adjacencies Adj i 3 E l iti

Pepsi& Pop Corn Dosa disappears with Kissan jams Heinz Goes with everything y g

Oreo Cookies & Milk

Pepsi Makes Food Better B tt

Chai Time Masti Bole Toh Kurkure!

Tea and Marie Doritos + Dip

Lays + sandwich

g g 4 Leaning Into The Frame Insinuating Your Brand Into An Existing Occasion

Transforming Tea Times Appropriating Meetha Moments Late Night Snacking

4 pm Hunger Pangs

For When Kids Come Home Hungry

Completing Your Breakfast Nutrition Diwali Gifting

Knorr Soup at 7pm

Heres How Walkers UK Brought Alive The Idea g That Sandwiches Go Great With Walkers Crisps!
Perception:ConsumerResearchindicatedthatBritishpeoplebelieveasandwichismoreexcitingwitha
packetofWalkerscrisps. k f lk i Reality:Lessthan1in10peopleactuallydoit.

TheWalkersteamsetouttoprovethatWalkerscrispsmakeaSandwichmoreexciting. p p g AnySandwich

Howatiny,sleepyvillagecalledSandwichbecamethemostexcitingplaceinBritain

British boy band JLS performed at Sandwich Tech Popular comedian Al Murray hosted a quiz night

Triple Michelin Star chef Marco Pierre White made free sandwiches for the town

F1 champ J h Jenson B tt Button gave locals a ride in his taxi Chelsea Midfielder Frank L m d j in d F nk Lampard joined in f for practice at Sandwich FC

The local pub got a new barmaid for a day Pamela Anderson!

The result: Sandwich received GBP 3.2 million of coverage, the films g generated 1.6 million views online, Walkers sold an extra 1.5 million packets of crisps
Watch the whole story at http://www.youtube.com/watch?v=DClOTJyVQzc

5 Brand Semiotics & Sensory Signatures

Coffee Source- Integrity, Aroma, Stimulation Strong, Highly Sensorial St Hi hl S i l Appetite Appeal, Thirst Stimulation

Cola Craving

Indulgence Pleasure-seeking Natural, Fruit Provenance

Sensory Signatures Bring Alive Each Element y g g Of The Marketing Mix, Including Packaging therebypermittingsophisticatedMoodMarketing yp g p g

These smooth & spicy notes partner well with Merlot for a surprising peppery finish

This citrus squeeze and Rosemary blend bl d compliments the buttery notes of l h b f Chardonnay to create a vibrant finish

Lays Romances Irresistibility And Flavors

Themultisensorialexperienceof fresh,earthyPotatoes&Flavorful NaturalIngredients N t lI di t

TheLaysOasisMoment

Slice Brand Semiotics Have Helped It Own Mango p g Codes Differentially

Thelogo iscutoutfromaperfectlyripe& juicymango. InIndia,mangoesareavailable&consumed inabundance. Slicegivestheexperienceof abundant,lusciousmangoes.

Wewaiteagerlyformangoestoripensowe We wait eagerly for mangoes to ripen so we canenjoythatfirsttaste.The firstdropof Slice connotestheculminationofthiswait.

Theirresistiblydelicioustasteofmangoes allowsIndulgenceandGuiltyPleasure.Slice usersenjoyPureMangoPleasure

6

Associations & Strategic Partnerships

Red Bull Extreme Sports Pepsi - Cricket Lays - Cricket

Mountain Dew Extreme Sports Vodafone - Movies Nike Chalkbot Lance Armstrongs Live Strong Foundation Adidas - Rugby

Nike And Apple Created The NIKE + Running Community

http://www.youtube.com/watch?v=nhStKDFGv_s

Strategic Partnerships: Win-Win Alliances That g p WinHelp Further A Corporate/ Brand Agenda

PepsiCo s 360 degree Farmer connect program PepsiCo Exnora Waste to Wealth Program

Quaker TOI Q k TOI Apollo Hospitals Mission To Make India Heart Healthy

Quaker Barista Healthy Breakfast

Time To Meet The Brands You Are Working On

69

Indias Juice-Based Industry Is At A Massive Juice1.82 Billion cases, Predominantly Unpackaged

Indian Juice Based Landscape

Unpackaged (88%)

Packaged (12%)

Street Juice*

Nimbu Paani P i

Coconut Water W t

Sugarcane Juice

Mango Drinks Di k

Nimbu Pani P i

1 19% FruitJuice F it J i

20 100% FruitJuice F i J i

27%
% of total

51%

5%

6%

76%
% within packaged

4%

7%

13%

* Includes homemade Juice

ThePackagedJuice/JuiceDrinksIndustrytodayrepresentsjust g / y y p j 12%oftheopportunity!
Source:PIIndustryConstruct,StreetJuiceQuant,CDT11

Packaged Juices Are Segmented By Juice Content and Pricing

Others

100%Juice (Rs80100)
4.2mmc/s /

20 79% FruitJuice F it J i Beverage (Rs7080)

19.2mmc/s 19 2mm c/s

0 19%Juice Drinks (Rs50 (Rs 50 69)

16.4mmc/s

MangoDrink (Rs50 55)

145mmc/s

Though Small In Volume, Juices Are Growing At 32% g

Value$MMUS l $

InValueTerms,Categoryisat1.5XInstantCoffee and0.8XNoodles

However, Category Penetration and Trials Still Low

72

70 68 67 66

66 52 49 44 40

47 46

32 26 25

20

6 1 0 Colas MBD 3 3 3 7 4

Lemon Lime Clear

Orange

Pkgd. Nimbu Pani

Pkgd Juice

GeographicalfootprintskewedtoNorth(74%)followed byWest(14%).SouthandEastareatroughly6%each

100% Juice Is Only 16% of Category Mix, But Is Driving Category Growth. Tropicana Enjoys Share Dominance

The Rest Of The Range ( < 100%) Constitutes The Bulk At 84%

Juice Category Home-Truths HomeFast Growing, Cluttered Category Witnessing High Activity Across Segments Growing Health & Wellness Trends Are Proving Tailwind For Future Growth Affordability and Relevance are Key Barriers. So Are Taste And Perceived Freshness Key Benefits are Nutrition, Health, Vitality and Taste Consumer Awareness and Understanding of Juice Propositions y y /Benefits/Juice Content Very Fuzzy Consumer Education and Product Differentiation Will Be Key g To Unlocking Growth

In 08, Tropicana Embarked On A Well Considered Strategy To Drive Greater Relevance Phase1
CelebratetheProduct
BuildConsumerConfidence Build Consumer Confidence &Education Tropicana100%is 100%Juice BuildReasontoBelieve CommunicateNo addedcolor,sugar, preservatives

Phase2
GivetheBranda Gi h d RelevanceAnchor
Anchorthebrandinthemost Anchor the brand in the most relevantOccasion Tropicana100%gives youahealthystart BuildReasontoBelieve InherentNutrientsand Goodness Topupyourbreakfast with100%

Phase3
MaketheBrand k h d IntegraltoBreakfast
GivetheBrandahookinto Give the Brand a hook into consumerslives Tropicanaunderstands thetradeoffsyoumake BuildReasontoBelieve RushedBreakfastleaves nutritiongaps Combatyourhectic lifestylewithTropicana 100%

Phase1

Celebrate C l b t The Product

Leadwiththe100%range:
CommunicateSuperior ProductCredentialswith strongbenefitmessaging: 100%Juice NoSugar No Color NoColor NoPreservatives

RestofRangeToDriveFlavor Experimentation,Taste& Value

Phase 1: Single Minded focus on establishing the Core 100% proposition

DesiredConsumerResponse:Ifitsnot100%,itisntgoodenough

Phase 2: Identifying A Relevant Consumer Insight To Drive Consumption Relevance Phase2

Differentiate The Brand Arm It with a R l Relevance Anchor

It is now well proven that breakfast is the most important meal of the day. Unfortunately, it is also the one meal that is the most compromised for me due to my rushed morning schedule h d i h d l

How Do You Unlock A Highly Ritualized Occasion Like Breakfast?

KeyChallenges Breakfast is a highly ritualized occasion Breakfastisahighlyritualizedoccasion Food&Beveragehabitswellestablished Key Needs: Nourishment Day Long KeyNeeds:Nourishment,DayLong Vitality,Energy,AndTaste Juice Not part of the Indian Breakfast JuiceNotpartoftheIndianBreakfast Culture

StrongFunctionalDeliveryCritical Stake Claim to Nutritional High ground StakeClaimtoNutritionalHighground Tropicanacoversupthenutritiongapsin yourbreakfast

Phase 2: Anchoring The Brand In The Breakfast Occasion to Drive Relevance

Customized Breakfast Promotions Executed For Priority Customers To Drive Penetration

83

Disruptive Retail Merchandising To Drive Impact

Phase 3 Intensify The StrategyMake The Brand An Integral Part of Breakfast Phase3

Deepen the Brands Role Give it a Talking Point in the Consumers Life C Lif
.

Phase 3: An Empathetic Tone Of VoiceBuilding An Integral Role For Tropicana In Consumers Lives

86

Quaker Is A $2.8B Global Oats Business

#1globalbrandedhotcereal
$1.7 $0.9 $0 9
RTEcereals 14%

Primarilyahotcerealbusiness
Bars/ Biscuits 9% Other4% Other 4%

$0.8 $

$0.6

Hot cereals 73%

Quaker Q k

B&G

Whtbx Wh b

CPW

Presentin38countries

Skewedto4markets Skewed to 4 markets

Other14% UK4% UK 4% Mexico5% Canada 16%

US 61%

Source:Euromonitor;internalfinancials

Launched in India In 2006, Quaker Occupies Dominant Share Of The Oats Segment

LaunchedintheSouthZone,whereOats consumptionisawelldevelopedhabit categorypenetrationat30% category penetration at 30% QuakerenjoysdominantShareofMarket andStrongConsumerKPIs and Strong Consumer KPIs SteadygrowthinKeyConsumerMetrics
2011Changev/s10 TopOfMind EverEaten ControlsCholesterol 31 62 95 +16 +3 +17

India Has A Large Breakfast Opportunity, Mostly Unbranded

#Last4WeeksHH Penetration

12%

Muesli 910MT

Oats 8000MT

Traditionalfoodsare attheheartofthe Indianbreakfast habit BrandedBreakfast Market<50,000Tons.

Cornflakes 13200MT

98%

Poha

Idli

Paratha

Daliya

The Breakfast Cereal Category Is Witnessing High Decibel Activity

KeyConsumerTrendsHaveConvergedtoGrowTheBrandedBreakfastMarket
Health Concerns Stressed Lifestyles QuestFor Convenience

TheCompetitiveLandscapeIsStrong&Expansive

Saffola

BuildingOffHeart Healthcredentials

LeveragingBreakfast ExpertiseCredentials E i C d i l

BuildingHealth Credentials C d i l

Oats Category Home-Truths HomeLarge Breakfast Opportunity, But Predominantly Unbranded ( > 95%) Branded Breakfast Market Small ( 1000 Crs), But Fast Growing ( 30%). Oats Growth 46%, Breakfast Cereal 30% Growing Health & Wellness Trends And The Convenience Quest Ensure A Strong Growth Outlook South Contributes Over 70% Of Oats Volume, Followed By West. Low overall Relevance for Oats outside of South Key Barriers Are Low Awareness & Low Relevance. Consumer push back on Oats Taste &Texture also presents a barrier Consumer Education and Product Differentiation Will Be Key To Unlocking Growth

Quaker Has Leveraged The Heart Health Promise To Drive Relevance With The Consumer
2007
NutritiousBreakfastthathelps reducecholesterol reduce cholesterol

2008
Heartagemorethanyourage

200910

Isuddenlydiscoveredmy cholesterolproblem

Stronglyanchoredintheingredientpromisethatdrivesthe efficacyofOatsasaHealthfood.

A Powerful Consumer Education Campaign Has Formed The Core Of The Communication Strategy

Quakers Thought Leadership In Heart Health Has Paid Rich Dividend

HighgroundonHeartHealth
TheIntent

DeliveredGreatResults

TheFirst Source OfHeartHealth

Breakfast,Leader Reducecholestrol, Behaviorchange

Oats,Natural,Expert

At18%oftheBreakfastcereal marketandover50%shareofthe market and over 50% share of the OatsSegment,QuakerOatstoday enjoyssupremacyonbothbusiness metricsandonconsumerregard metrics and on consumer regard scores. Over300,000havejoinedtheMission

TheIdea
MobilizeIndiatoadoptHeartHealth AIMission DrivingRelevance inSouth

96

Deepening Oats Relevance For The Consumer Continues To Be A Critical Success Factor
ConsumerTruths
Busylifestyles,lackoftime, acceptanceofpackagedfood,& risinghouseholdincomesareall rising household incomes are all creatingagroundswellfor Healthierlifestylechoices. However,despiteHealthbecoming anincreasinglyimportantfactorin , ourfoodchoices,Tasteremainsof paramountimportance. Healthisstilldecodedbythe consumerasfreedomfrom disease,ratherthanoverall Vitality.

CategoryTruths
TheBrandedbreakfastcategory isregisteringstronggrowth. NewBrandlaunchesarebeing h b i N B dl builtonthepropositionsof increasedconvenienceor Nutritionorboth. OutsideoftheSouthzone,Oats penetrationataNationallevel penetration at a National level remainsverylowatonly3%

BrandTruths
QuakersHeartHealth propositionhasresonatedwith Consumers. Consumers However,thetriggerstoTrial remainlatentawareness,heart ailmentsandmedicinaladvocacy TheBrandrunstheriskofbeing perceivedinaproblemsolution perceived in a problemsolution context,andhencebeing regardedas medicinal/therapeutic.

Having Established Product Efficacy Credentials, Quaker Is Now Focusing On Enhancing The Relevance Of Heart Health FocusontheSoWhatofHeartHealth

TG

35yroldseeminglyfitcitylifer

Insight

Thepressuresofcurrentdailylifeprevent mefrominvestinginmytomorrow. f i i i

Proposition

Takescareofyourheart(today) soyoucanrealizeyourhearts desires(tomorrow) desires (tomorrow) ToWhyThatsImportant

FromWhatitDoes

Evolving Brand Tonality From Problem-Solution To ProblemProactive, From Instructional to Empathetic

Education
QuakerBenefits(notjust Q k B fi ( j forthesick&aged) ProprietaryOwnershipof HeartHealth(BETA GLUCANstory) GLUCAN story)

Empathyfor35+TG
Aphysicalmilestone:You noticesubtlechangesin yourhealth Anemotionalmilestone: Greaterurgencytoachieve yourdreams

Extending Oats Relevance Will Also Be About Making Oats Play A Larger Role In Peoples Lives
NewUserSegments

ProductInnovation
MotherBrandBenefit:Oatsreduce cholesterolandkeepyouheart healthy QuakerOatsCookies:ATastyand HealthyOatilicioussnacktofulfillthose y inbetweenmealhungerpangs

Challenge:Howdoyouvivifythebenefits ofconsumingOats? g Insight:FitcopsareararityinIndia yQ p g p p Initiative:A30dayQuakerprograminpartnership withdoctors,nutritionistsandphysicaltrainersat majorpolicestationsinChennai

Understanding Breakfast

A Good Breakfast Marks The Start Of A Good Day!

Acomfortzone Ritualistic Positivestart Fuelfortheday Fuel for the day

Entry Barriers Are Least For Breakfast , They Get Tougher As We Move Closer To The Core
Entry barriers least; High experimentati on, adoption and acceptance Eg Biscuits, Modern snacks/ Breakfast for some Quasi meals

Fixed, Fi d Sit down, d Home cooked meals Cultural, Ethnic , Foods; Main meals : Lunch Morning tea Festivals Lunch for HW Weekend family Lunch Breakfast for many

Small treats Celebrations

Snacking Entry barriers medium Eg; Breakfast g; cereals, eggs and Bread, Tropicana

Toughest to enter but once there, its most deep rooted

The Notion Of Breakfast Is Evolving

From
SPIRITUAL
Ihavegivenyoumybest.Nowgo outandseektheworld.Shubh Aarambh . Focus is on Taste Aarambh.FocusisonTaste

To
Healthisawayoflifeandeverything wedohasitsimpact.Tastestill hygiene,butHealthImportantand hygiene, but Health Important and makinginroads EatLikeAKing,butkeepithealthy Eat Like A King, but keep it healthy

SOCIO CULTURAL PSYCHOLOGICAL

EatLikeAKing:BellyFill Eat Like A King: Belly Fill

Sendingthefamilyoffwithfull stomachsandhappyfacesisagreat h dh f i feelingforthehomemaker Caregiventomyfamily.Mypersonal efforttogetthemgoingthehealthy andhappyway

Ahappy,lightandsatisfiedstomach thatgivesenergyandstaminatill h i d i ill thenextmeal Ireallycare,thatswhyIgiveyouthe bestandhealthiestbreakfastBut convenienceisnotasinanymore.

EMOTIONAL

RATIONAL

Firstmealoftheday;therightstartforarightday

Within The Household, A Varied Breakfast Is Becoming Common, Common, Given Individual Choices , Health Concerns; Concerns; Everyone Seeks Nourishment
HOMEMAKER HUSBAND ELDERS

Breakfasthastobe hot,healthy& hot healthy & appetizing.Everyone mustfeelhappy, contentinthe stomach,charged& stomach charged & energizedoverall

Makeithot,tasty&healthy Wanttoleavehomehappy l h h &energized.Notfussy aboutwhatIeataslongit isfresh&filling

Familiar/routinehealthy, Nourishing&smaller meals.Moretraditional intheirchoice&less experimentative

YOUNGCHILD

TEENS

YOUNGADULTS YOUNG ADULTS

Somethingthatisquickto S thi th t i i kt serve,treatywithoutany rituals.Preferonefood mealratherthanamedley. Small&Nonelaborate S ll & N l b t meals

Needstobelight&healthy. Mustprovideenergy& nourishmentwithout feelingstuffed&lazy. g y

Modernintheirchoice& Modern in their choice & wantinghighenergybutlow caloriesfoods.Notaverse totraditionalfoodsaslong astheycanebehadin as they cane be had in newer,scientificformats

Breakfast Home Truths

#1
FromaFood&BeverageNeedstate standpoint,Breakfasttime From a Food & Beverage Needstate standpoint Breakfast time overindexessharplyonhealthierneedstates

#2

Breakfastconsideredaveryimportantmeal(87%)

#3

BreakfastmovingfromRelaxedFamilyTimetoRushedMeTime

#4

OfSecA/Bpopulation,26%arehealthconscious.Areseeking Health,Convenience,withalargefocusonNaturalness, EnergizingAbility Energizing Ability

#5

Low presence ( 4%) of a healthy beverageamongAdultsat Lowpresence(4%)ofa healthybeverage among Adults at breakfast.
Sources:6Ws,BreakfastU&A,

You Dream It.. Well We ll Build And Grow It

Your Challenge

Design a powerful strategy that will i f l h ill help PepsiCo transform breakfast for Indian consumers, creating strong di i loyalty in a currently uncontested space.

The Deliverable
Youmust: 1. DeconstructtheBreakfastopportunity identifyagap/leveragepoint 2. Identifyandarticulateastronginsightthattriangulatesnutritionalxfunctionalx 2 Id tif d ti l t t i i ht th t t i l t t iti l f ti l emotionalbenefits 3. Designaproduct/productsthathasthepotentialtocreateatransformative experience/buildhabit experience/build habit 4. Formulatearelevant,powerfulpositioningideaforyourproduct/products 5. Designa convenient,innovativepackformattodeliveryourideatoconsumers 6. Tellushowyouwilladvantageyourpropositionthroughpartnershipsandalliances y g y p p g p p thatgobeyondproductstoservices/experiences

Execution Format
Yourideamustencompassall6deliverablesdetailedinthepreviousslide. YouarefreetochooseeitherofthetwoTrademarks(TropicanaandQuaker)towork with,ordesignproductsolutionsagainstboth. with or design product solutions against both. WhiledesigningyourProductSolutions,respecttheguardrailsthateachBrandTeamhas speltout(referAppendixA).Therearenoguardrailsfortheother5deliverablesyour teamisworkingon. PresentinganIntegratedBreakfastProgramideawithbothTrademarkswillcarrybonus points,asthismirrorsthecorporateobjective. points as this mirrors the corporate objective
Yoursubmissionshouldfollowthefollowingformat: Anexecutivesummarythatprecedesyourpresentation An executive summary that precedes your presentation Staywithin40slidesor5000words(MSPowerPointandWordrespectively)

What We Are looking For

Be Brave Think Outside The Box Be Insightful Think Consumer Out, Not Brand In Be Incisive Foresight, not Fact Paint The Big Picture Boldness of Vision Sweat the Details Bring Your Idea Alive

Appendix A Product Innovation Guardrails

NutritionalGoal RevitalizingpowerofFruitforBreakfast Nutrition GuardrailsonTropicana RichconnectionwithNature:20100%Juice PreferablyNoaddedsugar. NoPreservatives ShouldofferrealfruitNutritionandcanextend toAnyinclusionslikeFibre orPulp to Any inclusions like Fibre or Pulp AnyVegetablePlusFruitcombinations Couldevaluateaproductthatconvergesthe benefitofFruitjuice&Grainonly.

NutritionalGoal ToUsetheGoodnessofWholeGrainstoDeliverA NaturallyPerfectStart GuardrailsonQuakerportfolio Genuinenutrition Naturalingredients Energy&Special needsplatformsare d l tf bothpriority

Onlyperceived yp Excessivesalt/sugar

Wish Wi h you the th very best!