Pepsi ad work to CLM/BBDO, Paris

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PARIS -- Four months after Pepsi-Cola Co. restructured its U.S.-based marketing department, it has moved international responsibility for its Pepsi brand outside the U.S. from BBDO Worldwide, New York, to CLM/BBDO, Paris. Pepsi spends between $100 million and $200 million advertising its cola outside the U.S.

Last May Pepsi's top marketer--Brian Swette, exec VP-chief marketing officer--resigned. At the same time, Pepsi set up a new Marketing Council tasked with looking at global strategies for Pepsi and its other brands. The Council is co-chaired by Chairman-CEO Craig Weatherup, President-CEO Pepsi-Cola North America Phil Marineau and Peter Thompson, president Pepsi-Cola International.

Pepsi then decided to decentralize by dividing its marketing between the U.S. and the rest of the world under the direction of Massimo D'Amore, VP-marketing Pepsi-Cola International, who is based in Purchase, New York. Following that change, Pepsi asked BBDO Chairman Allen Rosenshine and BBDO Europe Chairman Jean-Michel Goudard to chose a European office to handle its work outside the U.S. Among the factors why CLM/BBDO may have been chosen was an earlier Pepsi campaign the Paris office created and a desire to balance the number of international accounts between Paris and Abbott Mead Vickers/BBDO, London, says Christophe Lambert, chairman and CEO of BBDO Paris.

Pepsi has now moved non-U.S. "strategic leadership" and "creative development" for its flagship cola to CLM/BBDO, Paris, because of "Pepsi's determination to expand its international marketing activities, especially in terms of communication," the French agency said in a statement. Although Pepsi is a strong No. 2 to Coca-Cola in the U.S. market, Coke has a massive lead over Pepsi in most markets outside North America. Pepsi's brand history, image, positioning and growth potential internationally are very different from the U.S., according to the agency.

As CLM/BBDO develops its first global Pepsi campaign to break in the beginning of 1999, there will also be other BBDO offices working on global campaigns, including New York, a Pepsi spokesman said. BBDO said all Pepsi global work still will be approved by BBDO New York Chairman Phil Dusenberry.

The shift is ``designed to get stronger global advertising that works better on a local market basis and still fits into a global position for brand Pepsi,'' said a Pepsi spokesman. ``It's not a loss for BBDO, New York, he contended.

Copyright September 1998, Crain Communications Inc.

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