“In October 2010, PepsiCo launched a new flavor in Japan—Pepsi Mont Blanc. Other Pepsi flavor variations that Japanese consumers were able to sample over the years included Pepsi Iced Cucumber; Pepsi Shiso (a herbal mint); Pepsi Blue Hawaii (pineapple and lemon); Pepsi Azuki (red azuki beans). The latest variation honored France's best known Alp: Mont Blanc. Priced at $1.65 per bottle, the new line mixed the flavor of chestnuts (“marrons”) and snow. It was scheduled as a limited release for the upcoming Christmas season. What is driving PepsiCo and other food and beverage multinationals to launch new flavor variations in markets (many of these released as limited editions) like Japan? Assess such an innovation strategy? What are the possible benefits and downsides?
“In October 2010, PepsiCo launched a new flavor in Japan—Pepsi Mont Blanc. Other Pepsi flavor variations that Japanese consumers were able to sample over the years included Pepsi Iced Cucumber; Pepsi Shiso (a herbal mint); Pepsi Blue Hawaii (pineapple and lemon); Pepsi Azuki (red azuki beans). The latest variation honored France's best known Alp: Mont Blanc. Priced at $1.65 per bottle, the new line mixed the flavor of chestnuts (“marrons”) and snow. It was scheduled as a limited release for the upcoming Christmas season. What is driving PepsiCo and other food and beverage multinationals to launch new flavor variations in markets (many of these released as limited editions) like Japan? Assess such an innovation strategy? What are the possible benefits and downsides?
As an important factor of growth, the new product development process helps to develop new and innovative products to attract, influence and retain the customers. Consumer behavior is an ever changing aspect and according to the trend, the tastes and preferences of the consumers also change. Responding to the changes in consumer behavior, Pepsico is launching new flavors of its offering in Japan. Innovation is an important ingredient to capture the attention and interests of the consumers and hence, the product variation is to be launched on a regular basis to survive and beat the competitions.
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