After cutting the amount it has spent promoting its beverages, media reports say PepsiCo is preparing to invest hundreds of millions of dollars on beverage marketing this year and into the future.
Analysts tell Ad Age that Pepsi needs to focus on “the long-term brand-building piece” that has been lacking in recent years. In a head-to-head comparison of a percentage of sales, Pepsi has spent three percent on its beverage brands versus eight percent for Coca-Cola.
Bloomberg notes that, since 2007 when Indra Nooyi took the helm as CEO of the company, there has been a focus on more healthy products and the company’s philanthropic efforts. We’ve reported on the CSR program, the Pepsi Refresh Project, a few times over the past year. In fact, the company did away with ads during the 2010 Super Bowl while spending more of its energy on the cause program.
For 2012, the company is back and they’ve already released a behind-the-scenes clip (above) from their ad, which will star Melanie Amaro, the winner of X Factor, and Elton John. The clip is part of Amaro’s prize for winning the Simon Cowell singing contest. Pepsi was the official sponsor for the show this past season.
The New York Post reports that the company is getting its succession plan ready, with a number of execs expected to see an expansion of their responsibilities. However, one of those execs won’t be Julie Hamp, SVP of consumer relations and CCO for the company. She is resigning effective March 2.
Pepsi has Q4 earnings coming soon, and StreetInsider.com suspects that more changes are coming. It will be interesting to see how one of the biggest companies in the world will transition to a new marketing plan, and a new marketing focus, if that’s indeed what they have in the works.