brand vs. brand
Posted by Dale Buss on February 13, 2012 06:06 PM
As it implements a global re-set of its Pepsi brand and corporate priorities, PepsiCo is girding for even more pitched battle with a re-energized Coca-Cola. And if only because PepsiCo plans to boost spending on its major brands by at least a half-billion dollars this year, the competition between the two giants should be the sharpest in some time.
PepsiCo CEO Indra Nooyi and the company's board announced strategic investments during their business review last week that are aimed at the major pressure points being applied lately by restive PepsiCo investors and others. In the meantime, Coca-Cola also announced massive overall cost cuts as well as a decision to use the savings of up to $650 million in extra marketing and brand buildling.
The boost in marketing outlays announced by PepsiCo will be devoted to the largest beverage brands, especially struggling Pepsi, as well as snack brands. But many of the agencies that have been serving the brands to date are being swept out in a massive 65% reduction in the number of partners used by the beverages business. And Pepsi will be culling many of the non-performers from its 400-plus global brands.Continue reading...