In 1967, the song “San Francisco” by Scott McKenzie described “a whole generation, with a new explanation.” That line still captures a central challenge for brands today. Customers continually redefine what they want from the products they choose: more health, less sugar, greater functionality, better value, or simply a better fit for the moments in which they consume them.
For beverage brands, these shifting expectations are reshaping what relevance truly means. The issue goes far beyond simply appealing to a younger generation. It is about understanding how people’s needs, tastes, and consumption occasions are changing across generations.
PepsiCo provides a useful case study in brand evolution. Across its portfolio including Pepsi, Gatorade, Mountain Dew, and poppi, the company is adapting established brands while adding new ones to respond to changing definitions of refreshment, hydration, indulgence, and wellness. This represents the new definition of brand relevance: staying close enough to evolving customer needs that the brand continues to earn a meaningful role in people’s lives.
Why Brand Relevance Matters More Than Ever
Remaining relevant in a changing world is critical to a brand’s long term health. Brand relevance is a key driver of purchase intent. It means the brand is perceived as current, up to date, and top of mind with customers. Perhaps most importantly, it means the brand is seen as addressing current customer needs rather than outdated ones.
The president of Beverage US at PepsiCo, Mike Del Pozzo, spoke recently about how the company’s beverage brands are renovating and innovating to stay relevant. As customers and potential customers redefine their wants, brands must adapt or fade away. As Mr. Del Pozzo stated, “The category of carbonated sodas is focused on those who want this, but want this differently.”
Occasion Based Segmentation Drives Innovation
Mr. Del Pozzo also commented on how the beverages division understood the importance of needs within specific consumption occasions. He noted that while having availability across different pack sizes was important, usage occasions were far more critical to the brands, especially Pepsi. People have different needs on different occasions, and segmenting by needs based occasions is critical for enduring profitable growth.
Consider this: “Sixty percent of Zero Sugar Pepsi usage is associated with food occasions.” Meanwhile, the wildly successful Mountain Dew Baja Blast was specifically designed to complement “the savory, cheesy, and spicy foods on the Taco Bell menu.” This occasion based thinking allows brands to create products that fit naturally into specific moments in a customer’s day.
Gatorade: From Sports Drink to Everyday Hydration
Gatorade is a PepsiCo beverage that is undergoing its own “new explanation” renovations. The brand was originally built on a problem solution framework. A football coach at the University of Florida recognized that his team, the Gators, needed to replace carbohydrates, electrolytes, and water lost during practices. He turned to the lab folks at the university, and Gatorade was born.
But times change, people change, and athletes change. Gatorade is no longer just a sports drink. People now consume Gatorade for “everyday hydration.” Many people, including athletes, are also more concerned about their sugar intake. Although there are different versions of Gatorade with varying amounts of sugar, the brand now offers Gatorade Zero with zero grams of sugar and Gatorade Fit with zero grams of added sugar, using electrolytes from watermelon juice and sea salt.
Gatorade’s G2 provides a lower sugar alternative to the original. Mr. Del Pozzo indicated that 20% of lapsed Gatorade users returned to the brand through its low sugar alternative. That is the power of listening to changing customer preferences and adapting accordingly.
Poppi: Redefining Soda for a Wellness Generation
For a whole younger generation and a generation of wellness seekers, PepsiCo acquired Poppi. The Poppi brand is a prebiotic soda that aligns with the growing desire for gut health. With 35 calories or fewer, Poppi offers an alternative to more sugar intensive sodas. According to Mr. Del Pozzo, Poppi is “redefining soda” for a young cohort of soda users.
Soda may no longer be seen as merely a sugary drink. It is a new explanation for an old category. As Mr. Del Pozzo noted, the Poppi brand “is on fire.” This acquisition shows how large brands can stay relevant by embracing new consumer priorities rather than ignoring them.
The Challenger Spirit of Pepsi Cola
Pepsi, the company’s flagship brand, is facing challenges. Some reports indicate that Pepsi’s focus on its snack division may have shifted resources away from the cola brand. On the other hand, Mr. Del Pozzo said that Pepsi has always been a challenger brand. It is the Avis to the leader Hertz, always striving to outshine, outclass, and outperform the industry.
A challenger brand is neither a niche brand nor the market leader. It is aggressive, bold, ambitious, and can be disruptive to the marketplace. Pepsi’s challenger advantage will not come from repeating old rivalries. It will come from making the Pepsi brand more relevant to contemporary occasions, tastes, and definitions of value.
The 1980s Pepsi Challenge is a great example of how Pepsi disrupted people’s views about Coke versus Pepsi. In today’s marketplace, Zero Sugar Pepsi is a true contender against Coke’s offerings. Brands that want to succeed in this space can learn a lot from this challenger mindset.
Innovation and Renovation: The Lifeblood of Brands
In an ever changing, increasingly competitive marketing world, brands need true customer insight driven innovation and renovation to stay relevant. Innovations and renovations breathe active life into brands. They keep the brand fresh and exciting, and they signal to customers that the brand understands their evolving needs.
For those looking to build brands that stand the test of time, understanding audience needs is essential. Whether you are building a beverage brand or an online business, the same principles apply. You need to listen, adapt, and innovate continually. If you are interested in learning how to apply these principles to your own online ventures, consider exploring our Affiliate Marketing course. It covers exactly how to identify customer needs, create valuable content, and build sustainable income streams. Or, if you need more hands on help, we offer professional website design, search engine optimization, and digital marketing services with the famous trainer Nehme Sbeiti, tailored to help your brand grow and thrive in the digital age.
Looking ahead, the brands that succeed will be those that embrace change rather than resist it. They will be the ones that listen carefully to what customers want and then deliver it in unexpected, delightful ways. The new definition of relevance is not about being the biggest. It is about being the most attuned to the people you serve.
