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Transforming Snacking: PepsiCo's Strategic Shift for Gen Z

Transforming Snacking: PepsiCo's Strategic Shift for Gen Z
As the boundaries between meals and snacks blur, PepsiCo is redefining its strategy to cater to Generation Z's evolving consumption habits. The company's international growth officer and CMO, Mustafa Shamseldin, shares insights into how PepsiCo is adapting to meet the needs of this dynamic generation.

Engage with PepsiCo's Bold Vision for Future Snacking Experiences

Adapting to On-the-Go Lifestyles

In an era where time is a precious commodity, Gen Z consumers are increasingly opting for convenient, portable food options that align with their fast-paced lives. Recognizing this shift, PepsiCo has introduced innovative products designed to fit seamlessly into busy schedules. For instance, the collaboration with Komagene in Turkey resulted in the Doritos Cig Kofte Wrap, a modern take on a traditional Turkish dish. This product not only caters to the desire for convenience but also offers a unique culinary experience that resonates with younger consumers.The integration of such products into daily routines underscores PepsiCo's commitment to providing solutions that enhance the quality of life for Gen Z. By focusing on portability and flavor, PepsiCo aims to create offerings that can be enjoyed anytime, anywhere, without compromising on taste or satisfaction. This strategic approach ensures that PepsiCo remains at the forefront of consumer preferences, continuously evolving to meet the demands of today's youth.

Prioritizing Experiential Value Over Tangibles

Research indicates that 73% of Gen Z and Millennials prioritize experiences over material goods. Understanding this mindset, PepsiCo is shifting its focus from mere product sales to creating memorable brand interactions. Lay’s potato chips, for example, have become synonymous with celebrations, as demonstrated by the launch of pop-up food trucks in European markets. These events featured locally inspired recipes, such as a Spanish potato omelet made with Lay’s chips, offering consumers a taste of tradition with a modern twist.By fostering these engaging experiences, PepsiCo strengthens its emotional connection with consumers, making its brands more than just products but part of their lifestyle. This experiential marketing strategy enhances brand loyalty and positions PepsiCo as a leader in delivering value beyond the tangible. Through these initiatives, PepsiCo not only satisfies immediate cravings but also creates lasting memories that keep customers coming back for more.

Harnessing the Power of Social Media

Social media platforms like TikTok have revolutionized how people discover and engage with food content. According to PepsiCo research, 54% of consumers now rely on TikTok for new food and cooking ideas. This digital transformation has prompted the company to leverage social media as a key marketing tool. Doritos, for instance, collaborated with 13 global influencers to develop “Doritos Loaded” recipes, tapping into the viral potential of user-generated content.This strategy capitalizes on the growing influence of digital platforms in shaping culinary trends. By partnering with influencers who resonate with Gen Z, PepsiCo amplifies its reach and credibility. The result is a vibrant community of brand advocates who share and promote PepsiCo products, driving organic engagement and expanding the brand's footprint. Moreover, this approach fosters creativity and innovation, encouraging consumers to experiment with flavors and recipes, thereby enriching the overall snacking experience.

Embracing Global Flavors and Spicy Trends

Consumers across all age groups are increasingly drawn to bold, international flavors. PepsiCo's Lay’s brand exemplifies this trend through its diverse range of globally inspired flavors. From honey butter (Korea) to Tzatziki (Greece) and Masala (India), these flavors reflect PepsiCo's dedication to authenticity and culinary expertise. The company collaborates closely with local culinary teams to ensure each product stays true to its cultural roots while appealing to a global audience.The demand for intense flavor experiences is particularly evident in the success of Flamin’ Hot products. This line has seen explosive growth, becoming a standalone brand that has expanded into multiple markets worldwide. The introduction of ‘Extra Flamin’ Hot’ in the U.K. and Doritos Dinamita Flamin’ Hot in Brazil highlights the enduring popularity of fiery flavors. As we look ahead to 2025, PepsiCo anticipates that the Flamin’ Hot trend will continue to dominate, driven by consumers' insatiable appetite for heat and excitement.

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