Howard Moskowitz conducted market research for Pepsi in the 1970s to determine the optimal amount of aspartame sweetener in Diet Pepsi. He tested concentrations between 8-12% and found that 10% received the best ratings. For Campbell's Prego spaghetti sauce in the 1980s, Moskowitz created 45 variations that were rated by consumers. Analyzing the data, he discovered one-third of Americans preferred an "extra chunky" style that was not previously offered. Prego launched this new variety, which became very successful, generating $600 million in sales. Moskowitz's research changed the food industry's approach from seeking universal favorites to understanding variability in consumer preferences.

1. What is the Topic Today

2. Do you know who is this ?
Do you know what is this ?

3. It’s the Most important revolution in Food Industry….
SPAGHETTI SAUCE…..

4. Howard Moskowitz
• American Market Researcher
• Graduated Harvard University in 1969
• Ph.D. in experimental psychology
• 1970’s to 1980’s - Consulting with food companies to increase
sales.
• He was hired by Pepsi

5. Aspartame is approximately 200 times sweeter than sucrose
(table sugar). Due to this property, even though aspartame
produces four kilocalories of energy per gram when
metabolized, the quantity of aspartame needed to produce a
sweet taste is so small that its caloric contribution is negligible.
So aspartame was getting increasingly popular in 1970
o Pepsi wanted to use it in their latest offering – Diet Pepsi.
o Howard has to figure out how much aspartame should each can of Pepsi
contain in order to qualify as the perfect drink

6. o Work in a band of 8 to 12% sweetness.
o Below 8% sweetness wasn’t sweet enough
o Above 12% sweetness was too sweet
0
10
20
30
40
50
60
70
80
8.1 8.2 8.3 .. 11.9 12 28
29
30
8.1 8.2 8.3 .. 11.9 12

7. Common Researcher Thinking
• They asked the wrong people,
• at the wrong time,
• or may be made some errors on the way.
Common Man Thinking
• Take a calculated guess and pointed at 10% aspartame in this situation
Howard was neither Common Man nor Common Researcher

8. There is no perfect Pepsi
There are only Perfect Pepsis
What did Pepsi do ???

9.  In the 1980’s Campbell’s called on Howard to save Prego spaghetti sauce
 Prego is a much better sauce its blends best with Pasta compared to Ragu
 Instead how existing sauce could be improved
Howard decided to look for the perfect Prego spaghetti sauces
instead

10.  45 different varieties of Spaghetti sauce
 Varied them in every way that you could possibly think of –
o sourness,
o level of garlic,
o Tartness, etc
 Took these sauces to New York, Chicago, etc. with varieties of sauce and
asked them to rate on a scale of 0 to 100

11. After months of this activity, he had a mountain load of data about
how the American people feel about spaghetti sauce.
Now would he look for the perfect pasta sauce?
He grouped this data into clusters to see if a pattern emerges

12. Plain
33%
Spicy
34%
Extra Chunky
33%
Likes

13.  Extra chunky sauce was nowhere to be found in
America
 Revelation was that there are one-third of Americans who
crave for “extra chunky” sauce, yet no one is servicing their
needs!
Prego made 600$ million over the coming years

14. • It has changed the way the food industry
things about making us ‘happy’.
Myths Broken
• Best way to know what people want is to
ask them( No longer best) The mind
knows not what the tongue wants
• Certain dish could be cooked best only in
one way is what changed after this
research
• Change from ‘search for universals’ to
‘understanding variability’

15. “It’s really hard to design products by focus groups.
A lot of times, people don’t know what they want until you show it to them.”
— Steve Jobs (BusinessWeek, May 25, 1998)