anjalicutek
Anjali Khurana
PepsiCo, Inc. is one of the world's top consumer product companies with many of the world's most important and valuable trademarks. Its Pepsi-Cola Company division is the second largest soft drink business in the world, with a 21 percent share of the carbonated soft drink market worldwide and 29 percent in the United States. Three of its brands--Pepsi-Cola, Mountain Dew, and Diet Pepsi&mdashe among the top ten soft drinks in the U.S. market. The Frito-Lay Company division is by far the world leader in salty snacks, holding a 40 percent market share and an even more staggering 56 percent share of the U.S. market. In the United States, Frito-Lay is nine times the size of its nearest competitor and sells nine of the top ten snack chip brands in the supermarket channel, including Lay's, Doritos, Tostitos, Ruffles, Fritos, and Chee-tos. Frito-Lay generates more than 60 percent of PepsiCo's net sales and more than two-thirds of the parent company's operating profits. The company's third division, Tropicana Products, Inc., is the world leader in juice sales and holds a dominant 41 percent of the U.S. chilled orange juice market. On a worldwide basis, PepsiCo's product portfolio includes 16 brands that generate more than $500 million in sales each year, ten of which generate more than $1 billion annually. Overall, PepsiCo garners about 35 percent of its retail sales outside the United States, with Pepsi-Cola brands marketed in about 160 countries, Frito-Lay in more than 40, and Tropicana in approximately 50. As 2001 began, PepsiCo was on the verge of adding to its food and drink empire the brands of the Quaker Oats Company, which include Gatorade sports drink, Quaker oatmeal, and Cap'n Crunch, Life, and other ready-to-eat cereals.
PepsiCo Drinks Up My
SAP
SAP announced on Wednesday that global brand leader PepsiCo hasselected mySAP Business Suite as the primary business platform for unifying its operations, standardizing business processes and increasingefficiency across its divisions. The US$27 billion convenience food andbeverage company produces Frito-Lay snacks, Pepsi-Cola beverages,Gatorade sports drinks, Tropicana juices and Quaker foods. SAPspokespeople declined to comment the value of the deal in either dollars or seats. However, John Grozier, SAP's vice-president of CRM productmarketing, told CRM Buyer in an interview that PepsiCo selected mySAP tokick off of a major business transformation for the company. "Ultimately thisis an enterprise-wide decision and the specific plans being worked out rightnow," he said.
hen PepsiCo decided this year to forego the customary Super Bowl advertising for its Pepsi line of soft drinks, many industry observers were surprised. But the real shock was what the company pursued instead: a $20 million social media campaign that enabled people to submit and campaign for ideas (proposals to "refresh" their communities), and then empowered the public to vote among the submitted proposals.
Twenty million dollars may seem like a lot of five-cent deposits, but the company says participation levels since the campaign's January 2010 launch have been tremendous:
* 7,500 submitted ideas;
* more than 46 million people have voted for a project;
* 256 projects received Pepsi Refresh Project grants; and
* those projects are estimated to have reached over 200,000 people nationwide.
And that's just the snapshot after 9 months, according to Bonin Bough, PepsiCo's global director of digital and social media. In his "preconference" keynote address at the Digital Marketing Association's DMA2010 event, convening here this week, Bough announced the company's intent to expand Pepsi Refresh to Latin America, Europe, and Asia in 2011 — and shared some advice on how marketers can make their social media campaigns as fresh as Refresh.
ritney Spears, Cindy Crawford and Ozzy Osborne all have appeared in Pepsi Super Bowl ads. But this year, the soft drink brand is breaking tradition, opting for a digital CRM program to drive a two-way discussion with consumers instead of a splashy, Super Bowl spot for its flagship soft drink.
The strategy shift means Pepsi will inject $20 million into its cause-related Refresh Project that helps people improve their communities through a variety of projects funded by the marketer. PepsiCo will officially launch a Web site, RefreshEverything.com, on January 13. On it, consumers can list projects that can improve communities, such as feeding the hungry or teaching people to read. Consumers can vote on the site beginning February 1 on projects they think should receive a share of the money. They will be asked to contribute their e-mail addresses for e-mail alerts on the project.
However, Nicole Bradley, spokesperson for PepsiCo, tells DMNews the primary goal is to create a two-way dialogue with loyal and prospective customers, rather than build an e-mail database for marketing.
"The Super Bowl broadcast can be an amazing stage for broadcasters, and [PepsiCo subsidiary] Frito Lay will be there in a big way," she says. "But our beverage brands' marketing strategy in 2010 [is] less about a singular event and more about a movement. We are always looking to further develop our two-way conversation with consumers."
The CRM campaign asks consumers to suggest ways that Pepsi can get involved in social causes. Bradley added that the company has made no decision on marketing for the 2011 Super Bowl and beyond.
With the effort, PepsiCo is taking its marketing initiatives to where its target audience is already spending much of its time, says Tracy Tuten, associate professor of marketing at East Carolina University.
"Pepsi has always positioned itself as being about the youth market of America, and young people now are inundated with social media," she says. "They are also increasingly involved in sustainability and the greater good and all of those issues. "Pepsi is making a big statement that they want to be about all of those things that their target [audience] is about."
Tuten adds that Pepsi's e-mail address collection could also be used to create a standalone social networking community.
The move marks the first time in 23 years that the NFL's championship game will not have an ad promoting Pepsi. PepsiCo spent $33 million advertising Pepsi, Gatorade and Cheetos during 2009's Super Bowl XLIII, according to an Associated Press report. TNS Media Intelligence, which measures advertising spending, reported that PepsiCo spent $142.8 million on 10 Super Bowl ads from 1999 to 2008 for its brands, ranking the company second only to Anheuser-Busch during that period.
The economy is compelling other brands to take a break from Super Bowl advertising. For the second straight year, FedEx will not advertise during the game, during which spots will reportedly cost nearly $3 million.
For PepsiCo, the decision to shift some of its marketing spend to a digital engagement project may have come down to measuring marketing effectiveness during the tough economy, says Dean DiBiase, chairman of RebootPartners.com and the former CEO of TNS Media.
PepsiCo Drinks Up My
SAP
SAP announced on Wednesday that global brand leader PepsiCo hasselected mySAP Business Suite as the primary business platform for unifying its operations, standardizing business processes and increasingefficiency across its divisions. The US$27 billion convenience food andbeverage company produces Frito-Lay snacks, Pepsi-Cola beverages,Gatorade sports drinks, Tropicana juices and Quaker foods. SAPspokespeople declined to comment the value of the deal in either dollars or seats. However, John Grozier, SAP's vice-president of CRM productmarketing, told CRM Buyer in an interview that PepsiCo selected mySAP tokick off of a major business transformation for the company. "Ultimately thisis an enterprise-wide decision and the specific plans being worked out rightnow," he said.
hen PepsiCo decided this year to forego the customary Super Bowl advertising for its Pepsi line of soft drinks, many industry observers were surprised. But the real shock was what the company pursued instead: a $20 million social media campaign that enabled people to submit and campaign for ideas (proposals to "refresh" their communities), and then empowered the public to vote among the submitted proposals.
Twenty million dollars may seem like a lot of five-cent deposits, but the company says participation levels since the campaign's January 2010 launch have been tremendous:
* 7,500 submitted ideas;
* more than 46 million people have voted for a project;
* 256 projects received Pepsi Refresh Project grants; and
* those projects are estimated to have reached over 200,000 people nationwide.
And that's just the snapshot after 9 months, according to Bonin Bough, PepsiCo's global director of digital and social media. In his "preconference" keynote address at the Digital Marketing Association's DMA2010 event, convening here this week, Bough announced the company's intent to expand Pepsi Refresh to Latin America, Europe, and Asia in 2011 — and shared some advice on how marketers can make their social media campaigns as fresh as Refresh.
ritney Spears, Cindy Crawford and Ozzy Osborne all have appeared in Pepsi Super Bowl ads. But this year, the soft drink brand is breaking tradition, opting for a digital CRM program to drive a two-way discussion with consumers instead of a splashy, Super Bowl spot for its flagship soft drink.
The strategy shift means Pepsi will inject $20 million into its cause-related Refresh Project that helps people improve their communities through a variety of projects funded by the marketer. PepsiCo will officially launch a Web site, RefreshEverything.com, on January 13. On it, consumers can list projects that can improve communities, such as feeding the hungry or teaching people to read. Consumers can vote on the site beginning February 1 on projects they think should receive a share of the money. They will be asked to contribute their e-mail addresses for e-mail alerts on the project.
However, Nicole Bradley, spokesperson for PepsiCo, tells DMNews the primary goal is to create a two-way dialogue with loyal and prospective customers, rather than build an e-mail database for marketing.
"The Super Bowl broadcast can be an amazing stage for broadcasters, and [PepsiCo subsidiary] Frito Lay will be there in a big way," she says. "But our beverage brands' marketing strategy in 2010 [is] less about a singular event and more about a movement. We are always looking to further develop our two-way conversation with consumers."
The CRM campaign asks consumers to suggest ways that Pepsi can get involved in social causes. Bradley added that the company has made no decision on marketing for the 2011 Super Bowl and beyond.
With the effort, PepsiCo is taking its marketing initiatives to where its target audience is already spending much of its time, says Tracy Tuten, associate professor of marketing at East Carolina University.
"Pepsi has always positioned itself as being about the youth market of America, and young people now are inundated with social media," she says. "They are also increasingly involved in sustainability and the greater good and all of those issues. "Pepsi is making a big statement that they want to be about all of those things that their target [audience] is about."
Tuten adds that Pepsi's e-mail address collection could also be used to create a standalone social networking community.
The move marks the first time in 23 years that the NFL's championship game will not have an ad promoting Pepsi. PepsiCo spent $33 million advertising Pepsi, Gatorade and Cheetos during 2009's Super Bowl XLIII, according to an Associated Press report. TNS Media Intelligence, which measures advertising spending, reported that PepsiCo spent $142.8 million on 10 Super Bowl ads from 1999 to 2008 for its brands, ranking the company second only to Anheuser-Busch during that period.
The economy is compelling other brands to take a break from Super Bowl advertising. For the second straight year, FedEx will not advertise during the game, during which spots will reportedly cost nearly $3 million.
For PepsiCo, the decision to shift some of its marketing spend to a digital engagement project may have come down to measuring marketing effectiveness during the tough economy, says Dean DiBiase, chairman of RebootPartners.com and the former CEO of TNS Media.
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