Consumers Are Buying More Than Products

PepsiCo’s first chief design officer points out how consumers value experience over products.

March 21, 2017

SINGAPORE – PepsiCo doesn’t just compete against other food or beverage brands—it competes against whatever catches the attention of consumers, Fortune reports. “We compete with the latest song of Beyoncé, with the latest telephone from Samsung or Apple,” said Mauro Porcini, PepsiCo’s chief design officer. “We compete for mindshare and relevance in the life of people.”

When Fortune’s Brian O’Keefe asked Porcini how PepsiCo keeps its culture fresh, Porcini revealed three phrases that “every designer building a new organization should be aware of.”

1. Denial. “The company doesn’t understand that they need you, that they need this new culture,” said Porcini.

2. Hidden Rejection. “You go to these meetings, everybody’s nice to you, they love you, and then as soon as you’re out, they’re like, ‘Okay, thank God he’s out. Let’s go back to the real life,’” he said. “And it’s very important to understand this because that’s the phase, at the beginning, where you think you’re getting traction, and you’re not at all.”

3. Leap of faith. “Essentially, you find some people, what I call the co-conspirators, that decide to bet on you for a variety of different reasons,” said Porcini.

With more consumers experiencing social media fatigue, traditional retailers have begun to shift from designing products to designing experiences. Seventy-eight percent of millennials would rather pay for an experience than a product, Porcini said, while 47% want brands to provide inspiration.

“People, therefore, are different. They behave in a different way with our products and brands. They don’t buy, actually, products anymore, they buy experiences that are meaningful to them, they buy solutions that are realistic, that transcend the product, that go beyond the product, and mostly they buy stories that need to be authentic,” said Porcini. “We need to understand how to provide those experiences, as brands.”

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