PepsiCo Reorganizes Top Ranks of Global Marketing Groups
PepsiCo is shaking up its top marketers yet again as it looks to shore up leadership for its fledgling global groups.
The company today announced internally a number of executive changes in its global groups organization, established earlier this year. The groups report to John Compton, president-PepsiCo.
Lorraine Hansen, global chief marketing officer-hydration, will move to president-global snacks group. Enderson Guimares will take on the job of president-global nutrition group.
Sarah Robb O'Hagan has been named president-global sports nutrition group and will continue as president of Gatorade North America. Brian Newman has been named senior VP-strategy and finance.
Global group leaders for human resources and communications will be announced in the coming weeks, according to an internal memo obtained by Ad Age . PepsiCo has developed a "100-day rollout plan" to align employees around its vision and approach to operating as a global company.
"We are still at the beginning of this journey," Mr. Compton said in the memo.
Execs have called PepsiCo's global approach a "rite of passage." They also believe a global structure -- as opposed to the previous, multiregional one -- will allow it to be more innovative and forward-thinking in its marketing. Just this week brand Pepsi launched its first global campaign. It was steered by Mr. Jakeman in cooperation with Simon Lowden, CMO-PepsiCo Americas Beverages, and marketing chiefs from other regions around the world.
It's clear the company aspires to execute global campaigns across its other mega brands. It boasts 22 billion-dollar brands throughout its beverage, snacks and nutrition portfolios. Snacks has become an increasingly important division for PepsiCo. It is forecast to overtake beverages by 2016, growing to 52% of overall revenue from 48%.
With brands such as Lay's, Doritos and Cheetos, PepsiCo dominates the global savory-snacks category. In 2010 it had sales of $29.9 billion, far ahead of No. 2 Kraft at $5.3 billion. PepsiCo's snack revenue grew 9% last year, and volume was up 4%. In North America, Pepsi plans to boost advertising and marketing on snacks by 35%, while ramping up its "Power of One" effort to market snacks and beverages together.
PepsiCo has said that it will spend an additional $500 million to $600 million to market a dozen core brands in 2012. They include Pepsi, Gatorade, Tropicana, Mtn Dew, Sierra Mist, Lipton, Mirinda, Lay's, Sun Chips, Cheetos, Doritos and Quaker. Last year PepsiCo reported $66.5 billion in annual sales and spent $3.5 billion globally marketing its brands.
Contributing: EJ Schultz