Tag Archives: beverages

What is an Insight? – Pepsi 2-Liter Bottle Redesign

What is an Insight? - Pepsi 2-Liter Bottle Redesign

Recently Pepsi launched a redesign of the two-liter bottle. Any redesign or new design or innovation effort should of course always begin with an insight, but what is an insight?

According to Oxford dictionaries:

“Insight is the capacity to gain an accurate and deep intuitive understanding of a person or thing.”

In the case of redesigning the two-liter bottle, I think most of us can intuitively agree that the two-liter bottle is awkward to use, and understand that it is also awkward to store, but a very economical way to purchase soda and useful for sharing soda at parties.

So, beginning from this insight we can quickly imagine a design challenge of:

“How might we make the two-liter bottle easier to use?”

Starting with what we understand about the experience and usage of two-liter bottles we could have just as easily set a design challenge of:

“How might we better serve our budget conscious soda customers?”

OR

“How might we create a better soda option for parties?”

Given our guess above at the rough design challenge that yielded this Pepsi two-liter bottle redesign, it seems like this new design successfully meets its goal. But, whether it is an innovation will be determined by whether the competition adopts similar designs and whether these types of designs are still with us in several years.

So, what insight will drive your next innovation or design project?

Or, perhaps the more important question is this:

Is the brand new Pepsi Apple Pie flavor amazing or absolutely disgusting?

Please let me know below in the comments. 🙂


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Are Coca-Cola and Green Mountain Late to the Personalization Party?

Are Coca-Cola and Green Mountain Late to the Personalization Party?Recently I came across an announcement that Coca-Cola is partnering with Green Mountain Coffee Roasters to sell Coke products as part of Green Mountain’s new home beverage system slated for a release later this year. For those of you who aren’t familiar with Green Mountain, they make the popular Keurig in-home single-serving coffee machine (which became a popular home and office item after Nespresso’s patents expired). Now they want to expand their in-home beverage machine product line to include cold beverages. What is not clear in the press release is which of Coke’s products will be available with this new beverage system.

Will it only be beverages like Minute Maid juices, Powerade, Vitaminwater and non-carbonated beverages in their portfolio?

Or will it include the Coca-Cola crown jewels – Coke, Diet Coke, Sprite, etc.?

The only thing that is mentioned is that the system will not contain a carbon dioxide cylinder that needs to be changed periodically (something the Sodastream system requires).

So, what is driving Coca Cola to pursue this $1.25 Billion investment in Green Mountain Coffee Roasters in search of innovation?

Well, there are many different reasons why companies seek to innovate.

In Level 1 of the Global Innovation Certification we refer to this as Innovation Intent, and I am currently recording the fifth video module from two full days of live certification training materials for the Level 1 Innovation Certification eLearning, and this video module happens to be about innovation intent.

Some of the reasons that companies look to innovate can of course include:

  1. An ambitious leader
  2. A changing regulatory environment
  3. A changing competitive environment
  4. A desire for new growth opportunities
  5. Faltering company financials (burning platform)
  6. A need for competitive response
  7. Requests from customers
  8. Recognized new supplier capabilities
  9. Demands from shareholders
  10. Requests from passionate employees
  11. INSERT YOUR REASON HERE

Coca Cola FreestyleSo what is going on here for Coca-Cola?

Well, competitor Sodastream recently splashed out $4 million for a Super Bowl advertisement (during a game that our local Seattle Seahawks won) and has been growing steadily (while still small compared to Coca-Cola). But it does have a market cap of $780 Million and a growing fan base. But, at the same time, Coca-Cola is investing $1.25 Billion for 10% of Green Mountain Coffee Roasters. Why are they investing more than $1 Billion in this interesting, but still comparatively small segment of the beverage business?

Is this a smokescreen move, announcing a product that may never see the light of day, in order to dent the growth of an emerging competitor?

Is it a competitive response, a hedge, with a me-too product in case the home soda bottling movement continues to grow?

Is it just a logical doubling down for Coca-Cola in a belief that the beverage personalization trend has not exhausted itself yet, and building upon the success of the Coca-Cola Freestyle and the groundwork that Sodastream has done to seed the market for Coke?

Or has Green Mountain Coffee Roasters, with its massive distribution channels (in comparison to Sodastream), brought Coca-Cola something that truly represents an innovation in the beverage system market versus the Sodastream offering that might result in people switching and both gaining back market share for Coke in their core markets, while also potentially representing an opportunity for some of their less successful brands to gain traction in a space where they don’t have competition from Pepsi?

This of course would be the more interesting of the strategic undertones, and the one in which Pepsi, not Sodastream should be the most worried.

Because after all, in the minds of Coca-Cola executives, it is Pepsi that they are always most worried about, not someone like Sodastream, and anything that allows them to potentially steal market share from Pepsi, makes them very happy indeed.

What are the motivations behind this move and partnership, which direction will all of it go, and is there any real innovation happening here?

And what will Pepsi do?

I guess we will have to wait and see.

Meanwhile, ask yourself what your innovation intent is, and…

Keep innovating!


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A Refreshing Approach to Product Innovation

A Refreshing Approach to Product InnovationSometimes it is better to be late than never. Starbucks recently announced a new line of energy drinks – Starbucks Refreshers. There are two flavors Cool Lime and Very Berry Hibiscus and instead of copying other energy drinks, and use the same active ingredients as the usual suspects, they instead decided to use something uniquely Starbucks – green coffee extract.

Starbucks Refreshers are coffee drinks that don’t look like or taste like coffee, but provide the caffeine jolt that many of their customers are looking for nonetheless. And as an added bonus, they are coffee drinks that are much lower in calories and fat than many of their traditional hot or iced lattes. Coffee for the lactose intolerant too!

Starbucks has done something else smart, and that is that they have created a self-reinforcing product loop that allows for three different preparations and use cases for the same basic product, all in a single summer product launch:

  1. A customizable cafe preparation with multiple sizes and fresh fruit
  2. A canned, chillable pre-mixed portable preparation
  3. An extremely portable VIA DIY preparation without the water

In addition to being sold in their stores and licensed locations, the can and VIA preparation can be distributed via Starbucks’ existing grocery distribution channels.

Starbucks Refreshers are a great example of taking components of your brand and other organizational assets and leveraging them to create new products that people might not have thought about you creating, but that feel like natural extensions to them instead of a stretch.

Starbucks Refreshers are also a great example of looking at your raw materials in a new way and as a result a new product solution in born.

What might happen if you looked at your raw material inputs in a new way?

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