PepsiCo to up ad spend, trim agencies from 150 to 50

MUMBAI: Calling 2012 a transition year, PepsiCo announced that it will be adding to the advertising spends kitty. In a strategy to position itself for growth, the company also said it will reduce the agencies on its roster and lay off employese while adding to the A&P spends.

As reported in the Ad Age, the company will invest an additional $500 million to $600 million to advertise its brands this year following a six month review, with a focus on North America. Up to $100 million in additional spending will focus on things like in-store display racks.

In the coming years as well, PepsiCo will maintain or increase that rate of support to maintain ad spending as a particular percentage of revenue.

According to an analysis from Jefferies & Co. as a percentage of sales Coca-Cola spent 8 per cent on marketing in 2010 while PepsiCo spent just 3 per cent on its beverage brands.

PepsiCo CEO Indra Nooyi is looking to boost U.S. beverage sales and regain market share from Coca-Cola.

It is reported that the additional spending will focus on a dozen core brands like Pepsi, Gatorade, Tropicana, Mtn Dew, Sierra Mist, Lipton, Mirinda, Lay‘s, Sun Chips, Cheetos, Doritos and Quaker rather than spreading it across a wide swathe of its beverage and snack brands.

PepsiCo said it will reduce the number of agency partners in the beverages section from 150 to 50 in order to make way for the new investments. Currently TBWA /Chiat/Day manages the Pepsi trademark in the U.S. as well as Gatorade and Tostitos. BBDO works with Mountain Dew and remains involved with the Pepsi trademark globally. Goodby Silverstein & Partners handles Cheetos and Doritos while Energy BBDO is responsible for Lay‘s and Sun Chips.

The company recently added Brad Jakeman as president-global enjoyment and chief creative officer and Lorraine Hansen as senior VP-global hydration.

It has also been reported that the company is in plans to lay off 8,700 employees or about 3 per cent of PepsiCo ‘s global workforce across 30 countries. The company says it will reduce costs by an incremental $1.5 billion in the next three years with $500 million in savings each year.

Latest Reads
Q2-17: DB Corp revenue up, radio operating profit doubles

DB Corp Limited (DB Corp), home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Dainik Divya Marathi and Saurashtra Samachar reported 10.5 percent higher consolidated revenue for the quarter ended 30 September 2016 (Q2-17, current quarter) as compared to the corresponding year ago quarter....

MAM Marketing Brands
P Mark TVC features Boman Irani

MUMBAI: P Mark, the front-runner in the mustard oil segment in India, has unveiled its new TV campaign ‘one specialist to another’. Reinforcing its commitment as specialists and educating the masses about the taste, the new TVC pays tribute to P Mark’s exceptional taster in the category.

MAM Media and Advertising Ad Campaigns
Officer's Choice Blue snacks launches a new TVC campaign

Officer’s Choice Blue has launched a new advertising campaign ‘Salute to Banta Hai’ - communication that repurposes its long-standing platform of the ‘Good Samaritan’. The four TVC’s narrate testing situations, in slices of everyday life, and defines their actions to make for a better and caring...

MAM Media and Advertising Ad Campaigns
Interactive Television's Buzz Index to help advertisers make smart investment in movies

Interactive Television, a unit of WPP, has launched ‘Buzz index’- a revolutionary buzz measuring tool for helping advertisers to make informed decisions for cinema advertising.

MAM Media and Advertising Media Agencies
India's AdEx revised to Rs 62,483 cr. by EEMA; includes 'experiential' with 13.6 per cent share

MUMBAI: ‘Experiential Marketing’ or the concept of creating a bond between the consumer and the brand beyond ‘buying and selling’ by immersing them in an experience, is an underrated and underrepresented form of marketing, several marketers guiltily admit.

MAM Marketing MAM
WATConsult asks 'WAT's your Big Idea?'

WATConsult has launched of one of its kind ideation competition for colleges across the country - WAT’s your Big Idea (#WYBI).

MAM Media and Advertising Digital Agencies
iProspect campaign features Olympians

iProspect, the global business performance agency, has launched a new global brand campaign “It’s Who We Are” featuring six members of its staff. The agency held a search for the ‘faces of iProspect’ across its network of 84 offices across 52 countries. The campaign showcases how the talents and...

MAM Media and Advertising Digital Agencies
'Baahubali' forays into licensing with 'Black White Orange'; targets Rs 25 cr in retail sales

The brand is targeting 20-25 crore of retail sales alone from their merchandising & licensing revenue

MAM Media and Advertising Media Agencies
Google renovates AdSense UI for publishers with Material Design

Google's ad management platform for publishers, AdSense is to get a Material Design make-over much like their consumer-facing products like Google Maps, the tech giant recently announced.

MAM Media and Advertising People

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories