Pepsi 2014 Annual Report Download - page 11

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2014 ANNUAL REPORT  9
Building Our Digital
Capabilities
PepsiCo is responding to the
growing demand for food and
beverages purchased online.
In China, for example, our
“Click& Mix” innovation
provides a broad and unique
assortment of products
customized for our consumers,
and it leverages event-driven
marketing relevant to national
occasions, such as the Chinese
New Year. Shown above:
A“Click & Mix” gift box.
Lay’s “Do Us A Flavor” in
the U.S. attracted more than
14million submissions.
Looking Forward: Sustaining PepsiCo’s Resilient
Outperformance in the Coming Decades
The environment in which PepsiCo competes
will continue to evolve and change. And we will
continue to preemptively adapt and position the
company for long-term advantage and sustained
growth while delivering strong financial results.
Future forces
The four defining trends described earlier — the
continued rebalancing of the economic world
through the rise of the middle class and women,
the transformation of the retail environment, the
acceleration of consumer focus on health and well-
ness, and the war for talent — will almost certainly
increase in intensity in the years ahead. We will
continue to adapt to and capitalize on these trends.
At the same time, over the next decade and beyond,
we believe three additional trends will increasingly
impact the food and beverage industry:
1. The rise of the digitally savvy consumer-
shopper and the emergence of e-commerce as a
new distribution channel for foods and beverages.
2. The growing pressure on businesses to be a
more active force for change in addressing their
environmental and social impacts.
3. The heightened role values, ethics and corpo-
rate governance will play in enabling companies to
survive and thrive.
How we are adapting
Investing in new digital capabilities  Social media
and mobile technology are disrupting old ways
of doing business, but they are also creating new
opportunities for manufacturers, retailers, shoppers
and consumers to interact. PepsiCo is embracing
this shift by investing in three core digital capabili-
ties to support our continued growth.
First, a growing percentage of our advertising
andmarketing spend is now dedicated to digital
platforms as consumers dramatically change the
way they engage with media. We are leveraging
Facebook, Twitter, Instagram and other channels
in innovative ways to produce compelling content,
drive engagement and build brand equity. We
are also partnering with our retail customers on
programs linking to their social media platforms,
allowing us to reach the right consumers at the
righttime with the right offerings.
Second, our increased investment in digital is
creating unique opportunities for two-way dialogue
with consumers. For instance, through our Lay’s
“Do Us a Flavor” campaign, we engaged consumers
online to co-create innovative new products and
content that drives our brands. In China, Mirinda
invited consumers through social media to team
up with celebrities in a brand-owned variety show
to campaign and battle for a best new flavor.
And our Doritos “Crash the Super Bowl” contest
received nearly 5,000 consumer submissions from