Manu Anand\u2019s keynote session at the Retail Leadership Summit, 2013 showed that innovation is not the prerogative of just owner-entrepreneur driven organizations.<\/p>\n

$\"Manu$ <\/a>

Manu Anand, Chairman, PepsiCo, India Region<\/p><\/div>\n

Perhaps it has something to do with the category \u2013 food and beverages \u2013 which is inherently local, but PepsiCo India has much to showcase on its innovation \u201ccurriculum vitae\u201d.\u00a0\u00a0 The keynote address focused on what makes innovation \u201ctick\u201d.\u00a0 While most people think \u201cproduct\u201d when they think innovation, its also about packaging and process<\/p>\n

$\"manuanand325_060611111756\"$ <\/a><\/p>\n

Part of the process of innovating is asking tough questions \u2013 for example, asking the question of \u201chow much can this idea contribute to same store sales increase, to cash memo size and to customer footfalls\u201d \u2013 the three most critical metrics for retailers in India.<\/p>\n

Pepsi\u2019s model for innovation focuses on insights \u2013 on asking customers the right questions. In the case of oats \u2013 they were up against a tough sell. Oats has always been positioned as a \u201chealthy\u201d breakfast option \u2013 which in the customers mind translates to \u201ctasteless\u201d.\u00a0\u00a0 By \u201crepackaging\u201d this much maligned breakfast dish with a focus on taste and including recipes on its packets, Pepsi has succeeded in breaking the main barrier to adoption.\u00a0 The result? 15% of sales in the category are now flavored oats.<\/p>\n

Other examples abound \u2013 from Nimbooz \u2013 which is part of the overall directional drive to showcase the Indian nimbu-paani in the FMCG\u2019s repertoire \u2013 multipacks and party packs which provides serving sizes for various needs, to branded vending machines at high traffic points such as airports, to changing the visual look of a product (e.g. their limited edition \u201cglow in the dark\u201d Mountain Dew).<\/p>\n

They have learnt innovation through collaboration with trade. For example \u2013 during the IPLs they found that creating campaigns which highlight the product, will result in greater sales offtake, as top of mind recall is about the experience<\/b> of watching the match which includes snacking and drinks.\u00a0 Thus, the IPL is now a separate \u201cseason\u201d.<\/p>\n

Perhaps the best example is of Kurkure. The equipment that created the product was part of a failed global experiment, and related depreciation costs were a drag on the P&L. By juxtapositioning a quintessentially Indian taste onto the product, backed by a \u201chatke\u201d advertising campaign,\u00a0 they delivered a success story.<\/p>\n

Kurkure\u2019s most important contribution is simply that it has reinforced the lesson that local empowerment can deliver innovation.\u00a0 Tellingly, today, when internal teams present to Pepsi\u2019s global Board, they are now asked \u201cWhats your Kurkure?\u201d.<\/p>\n

So, all those B-school graduates who think that they have to make a trade-off between \u201cpassion\u201d and \u201cpay\u201d can heave a sigh of relief. Innovation is alive and \u201ckurkure-ing\u201d in large MNCs.<\/p>\n

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