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19,119 $m

Pepsi remains innovative and differentiated in the youth market-and considering rival and category leader Coca-Cola's consumers now have a median age of 56, this is a key strength on which Pepsi should continue to capitalize.

By creating experiences expertly linked to the world of pop culture, Pepsi continues to engage with the "now" generation. In its second year, the brand's global campaign, "Live For Now," broke new ground by using social media channels like Twitter to bring live concerts to music fans. Pepsi's recent FIFA World Cup advertising campaign, "Now Is What You Make It," also helped to further extend the brand's message-as did Pepsi's "Beats of the Beautiful Game," a compilation album featuring artists such as Janelle Monáe, Timbaland, and Kelly Rowland. 

Pepsi has continued to respond proactively to challenges the entire cola category phases in regards to health. As U.S. consumption of diet soda fell 6.3 percent last year and consumer demand for beverages containing no high fructose corn syrup or artificial sweeteners increased, Pepsi responded accordingly by launching Pepsi True. The new soda, which contains 30 percent less sugar and is infused with the natural sweetener stevia, is to be sold exclusively on Amazon. This approach will enable Pepsi to closely monitor consumer reaction to the new product-before it goes on shelves.

In the past year, Pepsi has also concentrated on creating new points of engagement for its consumers-with a sharp focus on innovation and personalization. Pepsi launched Spire, a self-serve soda dispenser, in response to Coca-Cola's machine, Freestyle. Spire, which The New York Times described as "a giant iPhone," allows Pepsi consumers to explore new taste combinations via a digital touch screen.

Pepsi recently made another strategic new hire signaling a reinforced commitment to innovation. Luke Mansfield, the former European head of product innovation at Samsung, joined PepsiCo's Global Beverages Group in September 2014. As Pepsi adjusts to a new era and seeks to expand its product portfolio, it is counting on Mansfield, and others like him, to continue bringing "big, disruptive, and game-changing innovations."

By engaging with young consumers, keeping consumers' desire for healthier beverages top-of-mind, using digital platforms to drive engagement, and making strategic new hires around innovation, Pepsi continues to address the challenges its category faces and is well-poised to be a relevant player in the Age of You.

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