FMCG Digital Evolution: Enhancing Vision with DX Flywheel Framework for Success

5/8/2024

FMCG companies are racing to embrace digital products, but many are stumbling due to a flawed vision. Discover how overlooking key consumer needs is leading to digital product failures and what you can do to avoid this common pitfall.

FMCG Industry Insights

Accenture found 40% of FMCG digital initiatives fail due to a misalignment with market needs and consumer preferences
Nielsen reports that 35% of FMCG digital products fail due to an inadequate understanding of consumer behavior and preferences, leading to a lack of vision in product development.

Due to lack of VISION, a real-life failure of a digital product in PepsiCo

Digital Product: Pepsi True

Problem:

Launched in 2014, Pepsi True was positioned as a healthier alternative sweetened with real sugar and stevia.
Within a year of its launch, Pepsi True captured less than 0.5% of the carbonated soft drink market
However, without a clear digital product vision, Pepsi True failed to gain traction.

Why Failed?

Despite the initial hype, Pepsi True struggled to compete with established diet soda brands due to unclear positioning and messaging.
Lack of a user-centric vision led to a product that failed to resonate with health-conscious consumers, resulting in a low market share of less than 1%.

Solution: VISION
How The Coca-Cola Company Used Vision as Dx Solution

Coca-Cola's digital product: Coca-Cola Freestyle
Coca-Cola Freestyle, offers over 100 flavor options and has been a huge success.
By investing in user-centric design and leveraging consumer insights, Coca-Cola Freestyle has captured a significant portion of the beverage market.
Coca-Cola Freestyle contributed to a 4% increase in Coca-Cola's global revenue in the first year alone (2).
With a user-centric approach, Coca-Cola Freestyle's market share has grown steadily, capturing over 10% of the fountain dispenser market (3).

Learn from PepsiCo's mistake and ensure your digital product's success with a clear vision and consumer-centric approach!

P.S. Among those strategies, which one will be most affordable for you to apply to your company?

References

The Future of Grocery of Accenture
Global New Product Innovation Survey of NielsenIQ
Beverage Digest
The The Coca-Cola Company Annual Report
Coca-Cola Company Market Analysis

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