MAM

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

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2017/10/23/Pepsi.jpg?itok=zNCSZuLG

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

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/18/makeup_0.jpg?itok=kb9xcVdD
Lotus Make-up brings out women's inner shine

Lotus Make-up has created a new campaign with digital and social media agency WATConsult called #SparkleEveryday.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/18/radio.jpg?itok=vX0DetRO
Radio City makes us experience Mumbai

Radio City has created a campaign that makes us experience a city even with eyes shut. The film Taxi Driver, is based on this emotion. To make this idea more experiential, the thought will be adapted in print, on-air, digital and on-ground.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/18/chetak.jpg?itok=OUBEhd8c
MP Birla Chetak Cement's new TVC is truly Rajasthani

MP Birla Chetak Cement has rolled out a new TVC conceptualised by Ogilvy Kolkata and produced by Conversation Films.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/18/hitachi.jpg?itok=tt7zTGTO
Hitachi's new automated service platform

Hitachi Systems Micro Clinic, system integrator and a specialist in managing end-to-end IT infrastructure solutions and services, has announced the launch of an automated service delivery platform Hawkeye 3.0, which aims at enabling organisations to increase productivity and efficiency. The...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/18/ads_0.jpg?itok=cITprp4R
The ins and outs of femvertising

MUMBAI: How many times have you come across ads that seek to empower women and ask them to take on the world (at times by using their product)? The general tendency of advertising in the seventies and the eighties was to objectify women in order to fascinate the ‘male audience’ to buy their...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/15/pretty.jpg?itok=k3d6mOBR
Fogg maker takes on fairness creams with Pretty24

Taking a stab at fairness creams’ perennial message of fair skin being the benchmark beauty and success, Fogg deodorant maker Vini Cosmetics (Vini) is touting the idea that every shade of skin is equally beautiful. The company has been plugging the primetime of mainline television channels for the...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/15/brain.jpg?itok=kT6QQo-H
55% marketers make better decisions with machine learning: iProspect report

MUMBAI: Digital agency iProspect has released its third annual Future Focus whitepaper geared to examine how machines and technology are impacting marketing and advertising in the year ahead. The paper takes a look at how brands can make the most of machines in 2018, from facilitating seamless...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/14/PAISABAZAAR.jpg?itok=F6V0tnEn
Paisabazaar aims Rs 1500 cr mutual fund AUM by 2018

MUMBAI: Paisabazaar has announced that assets under management (AUMs) garnered through its mutual funds products crossed Rs 1000 crore mark last month. The organisation says it is confident of reaching Rs 1500 crore of AUM by March 2018. The fin-tech company launched mutual funds on its platform...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/14/Blackberrys-AW_0.jpg?itok=0mzgSZY0
Blackberrys gives digital mandate to FoxyMoron

MUMBAI: Menswear fashion brand Blackberrys has assigned its digital mandate to FoxyMoron after a multi-agency pitch. The account will be managed from the agency's north office. As per the mandate, FoxyMoron will be managing the digital creative, media, search engine optimisation as well as website...

MAM Marketing Brands

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories