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PepsiCo Confidential
CHARLIE CRIDEFORD
NOVEMBER 2019
EMBEDDING DIGITAL
PepsiCo Confidential 2
Why is this important?
Digital is here to stay, it’s the foundation of the future
PepsiCo Confidential 3
What can be achieved?
More potential customers | Informed ROI
PepsiCo ConfidentialPepsiCo Confidential 4
WHAT DO WE
MEAN BY
EMBEDDING
DIGITAL?
PepsiCo Confidential 5
THE JOURNEY
3 core stages
BUILD
FOUNDATIONS
DEVELOP
INFRASTRUCTURE
BUILD NEW
CAPABILITY
PEOPLE STRATEGY STRUCTURE
PepsiCo Confidential 6
IT’S BOTH A REVOULTION &
EVOULTION
REVOULTION
EVOLUTION
PepsiCo Confidential
Stage 1
BUILDING THE FOUNDATIONS
PepsiCo ConfidentialPepsiCo Confidential 8
CREATE AN AGILE
AND VIRTUAL DIGITAL
TEAM
PepsiCo Confidential
PepsiCo Confidential 10
STRUCTURING RESOURCE
Aspire to create a collaborative & connected virtual team
BRAND MARKETING
DIGITAL SPECIALISTS
ONE TEAM
Digital
knowledge at
heart
Ecommerce Marketing Insight Data IT/Support
Agencies
PepsiCo Confidential 11
DIGITAL RESOURCE
3 Core jobs for this specialist resource to do
EDUCATE INSPIRE EXECUTE
PepsiCo Confidential 12
‘ONE’ DIGITAL TEAM APPROACH
Operating against ‘ONE’ team principles allows for effective operation
OPEN NETWORKED EFFECTIVE
Regular transparent
communications
Collaborate to learn
faster together
Empowered team with
joint goals
PepsiCo Confidential
Stage 2
DEVELOPING INFRASTRUCTURE
PepsiCo ConfidentialPepsiCo Confidential 14
BRIEFING
CREATIVE
MEASUREMENT
MEDIA
DATA
PepsiCo Confidential 15
BRIEFING
Define planning process & know when to select a specialist agency
PepsiCo Confidential 16
LEVERAGE DATA
Define strategy first, then technology second.
PepsiCo Confidential 17
MEDIA
Remove silos & integrate digital into total media mix – don't forget
ecommerce
PepsiCo Confidential 18
CREATIVE
Utilise smart production techniques to increase speed to market
PepsiCo Confidential 19
MEASUREMENT
Define digital insights learning agenda to inform media spend
PepsiCo Confidential
Stage 3
BUILD NEW CAPABILITY
PepsiCo Confidential 21
STRATEGIC PARTNERSHIPS
Develop strategic partnerships with ‘customers’ & media owners
PepsiCo Confidential 22
BEST PRACTICE
Produce guidance on activation & techniques
PepsiCo Confidential 23
SHAPE TEST & LEARN
Centralise test & learn plan to get scaled tests - Scale or Fail
PepsiCo Confidential 24
SUMMARY: THE JOURNEY
3 core stages
BUILD
FOUNDATIONS
DEVELOP
INFRASTRUCTURE
BUILD NEW
CAPABILITY
PEOPLE STRATEGY STRUCTURE
PepsiCo Confidential 25
KEY TAKEOUTS
• Digital is the DNA of everything
• Set expectations of the team; Can you operate as ‘One’ team
• Set your goalposts; agree up front what the process is & how
you measure success
• Never sit still; Test, Scale & Fail or Accelerate

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PepsiCo’s Journey to Embed Digital & Take Control of Their Media Spend

Editor's Notes

  1. Thank you for joining the session today. So as the slide suggests im here to talk to you about the process of embedding digital into an organisation. This is something that I have championed across various organisations throughout my career such as Vodafone, Sky & most recently Pepsico. All 3 large scale multi market organisations, but with shared focus areas when in comes to embedding digital. Despite my experience being from the perspective of a large multi-national, the areas highlighted are relevant to organisations of all sizes – these are not unique based on the size of the organisation but are common to the process of embedding digital It’s an area I am extremely passionate about, and strongly believe that we should be evolving for digital to be in the DNA of our organisations going forward. It should no longer be a silo’d area of an organisation but at the heart of everything we do. Over the next 20 minutes I will take you through the key steps in the journey of embedding digital into an organisation along with sharing some key learnings from my experience across the various brands ive worked upon
  2. Why is Embedding digital important? Well the time has finally come that digital should no longer be thought of as the shiny new toy….we have moved on from the year of digital, the year of mobile, the year of video to digital being here to stay. The opportunity is vast. Consumers are spending more time online across multiple devices than ever and technology has improved enough to ensure that pervious barriers prohibiting a seamless digital experience have considerably reduced. What’s more consumers expectations are higher than ever in terms of what they expect from brands. It is no longer a nice to have for a brand to have a website that is easy to use. It’s a must. Consumers expect to be able to find the products they are looking for in a matter of seconds and expect a seamless purchase experience and beyond including delivery. In order for us to thrive within this new era it is crucial that we look to embed digital into our processes, providing consumers with a seamless experience no matter what platforms they are engaging with our brand upon. And importantly developing the knowledge to truly understand what good looks like in digital. Being respectful that it doesn’t operate in the way that TV does but developing techniques that allow our spending to be truly accountable from investment across the board such as data, agencies & media.
  3. When we consider the journey of embedding digital, there are 3 core stages to this. Firstly, its about building the foundations. Like any foundations these are critical to the future success as if these are not stable enough it will not proposer. The key to solid foundations being People. This is where you Next its about developing infrastructure – thinking about what tools & processes you need to success. This is really where strategy comes into play. And the final stage is about building new capability – so defining the structure that you will operate within and what this should look like
  4. It’s important to remember that the journey of embedding digital needs to be both a revolution & evolution. Firstly you need your revolution to take place. Support needs to come from the top down to spark this process. Over the past 3 years at Pepsico we have very much undergone a revolution - with new digital talent being bought into the organisation and a centralised digital centre of excellence team being established. This has lead to a step change in terms of how digital is thought of across the organisation. Once these initial foundations are built that’s when the evolution really comes into play. Where the people within the organisation can work on evolving the strategy & structure and provide feedback back up the chain to allow for continual improvement. It’s critical to remember that the process of embedding digital shouldn’t be viewed as a one off exercise. This is an iterative process that should continuously be reviewed & refined at appropriate intervals to ensure that your people, strategy & structures are evolving in a way that both ensures a seamless experience for the customer but also allows you to deliver on your KPIS.
  5. So let’s get into the detail and look at what exactly we need to be thinking about when we talk about ‘Building the Foundations’
  6. As I alluded too earlier – strong foundations are built upon your people. Therefore its important to aspire to creating an agile & virtual team. The need to be agile is critical in this ever evolving market – whats’ the norm today will not be in 6 months time. We need to ensure that we are structured in a way that allows us to adapt as consumers behaviours do, so we can keep providing a seamless consumer experience and exceeding expectations. The notion of a virtual team is also becoming increasingly important. It’s important to note that this virtual nature isn’t only down to the fact of being in an organisation that works across various locations but also the fact that there are a range of specilists required to embed digital that sit within various sectors of an organisation such as IT, procurement & customer care. In addition to this we also have a range of agencies that provide specialist resource. The need for collaboration without silos’ is key – and the notion of an agile and virtual team reminds us that excellence is the person not the location.
  7. In terms of how we go about this, one of the first things to consider is the mindset people within the team have - embedding digital is a challenge and its impotant that you have people wihtin the team that are open to this challenge and approach it with a growth minsdet & an opportunity to grow. It is important to have a balance within your team, as if you are trying to embed digital with a team of people who all have a fixed mindset you are going to strugle. It is a big change to go through and you need a team that see this as an opportunity that excites them so they have the ambition to make this process a success rather than writing it off as too hard before they even start.
  8. Next if we think about structuring resource – its important to acknowledge this is not an overnight change, but rather a process that will need to occur over time. A good starting point, and one we have followed at Pepsico is employing a range of digital specialists and assigning these o work alongside our traditional brand marketing teams. Whilst this may be seen as an additional overhead its essential, particularly when you have a brand marketing team with a traditional skill set with no formal digital training & any digital pans being led by the soley by our agencies. The end goal is to have a fully integrarated team that features digital specialists within it. Even better looking at how digital specialists can be upskilled into wider markerters. Taking people with a digital grounding and building upon it further. Meaning we no longer talk about a seperate digital team but a team When recruiting digital specilisats its important to think of the breadth that digital covers; ecommerce, digital marketing & digitalisation. Therefore a range of specialisms need to be recruited for. Another area to think about in regard to people is how they are structured. At Pepsico we are a matrix organsiation and as such have managed to infiltrate digital specialists throughout the organisation. Its important to consider if a centralised digital team is required to spearhead the revolution - in our case this was our digital centre of excellence. Next we looked at embedding digital specialists at a country and category level - having digital specilisats on point to execute digital actitiy at a local level and specialists on point to advise at a cateogry level. Within this structure its important to think about the jobs to be done by this team - and the balance that needs to be acheived between executing to educating as if we really want to achieve the aspiriation of one team with no digital boundries a large proporation of effort needs to be assigned to educating and upskilling the wider team.
  9. Once gaining specialist digital resource, its important to define the jobs to be done by this resource. In my experience there are 3 core jobs that this resource should be looking to do. Firslty – educating the teams. They should be looking to upskill the knowledge amongst the traditional marketers – sharing there knowledge and facilitating wider learning. Next there is a job to be done around inspiring – its important to note this is different to educating. As digital specialists we shouldn’t just look to educate on the basics but inspire brand marketing to think bigger and push the boundaries of what can be achieved in the digital space. It is always easier to scale things back than try and stretch so its important that the resource keeps up to date with the latest trends and shares this with the team. The final job is around executing. This is making sure that creative assets are developed following best practice gudielines and media planning principles. Its important to remember that not every digital specialisat within the team will need to cover all 3 roles and its worth considering how this should be structured. For example and Pepsico we have digital resource assigned to our regional category based teams that are there to educate & inpire and then resource in our local markets to execute.
  10. My final point on teams is the behaviours by which they should operate against. As it’s a virtual team its important that everyone involved is clear about the ways of working and bought into the principles to make the team a success. At Pepsico we have the anaology of ‘One’ team – this focusing around regular transparent communviaiton amongst the team, with a focus on collaboration to help people learn faster together and share joint success.
  11. Infrastructure is a broad term and in the purpose of this presentation its really focused on developing your approach to the end to end process. From briefing through to measurement. It’s crucial that an approach is defined and standards agreed for each stage in the process to allow for success.
  12. The first thing to start to break down these silo’s is including digital within the breifing process. Whilst the end aspirataion is total integration its important to be realistic with this and identify what steps need to be completed first to help educate wider teams. At Pepsico we already have our planning procee defined, and we have now mapped the digital process alongside this. Whilst this has lead to seperate documents being created specific for digital it has provided a strong foundation for us to build upon when heading into the total integration phase. Its important not to under estimate the need to complete the small steps first as it will help in the long term.
  13. PICK TECH FOR STRATEGY NOT TECH FIRST Consider consumer database, social listening & common tagging
  14. As with people, lets start with looking at what we should aspire too and where we have come from. We started from a place with where digital & traditional planning was sioled - both being planned in isolation. Over time we have managed to break down this boudnry and extend the plannign process to encompass both traditional & digital channels. The final ‘dream’ end state is that there is one centralised plannign process with no boundries between the traditional & digital world
  15. Planning for creative can be a mindfield particuarly when trying to embed digital. At pepscio we are currently in the middle of this process. Having engaged digital specialists to assist us with the creation of our digital assets. However this has lead to increased production costs and effort required. However like with planning this half way point stage is needed to help get digital to the standard requried before integrating back into the centralised process. In addition to this we THINK ABOUT HOW TO SAY CROSS REGIONAL ASSETS UTILISE SMART PRODUCTION TECHNIQUES - INCREASING SPEED TO MARKET FRAMEWORKS FOR MARKETS TO ADAPT EASILY & ALLOW FOR RESPONSIVENESS DON’T FORGET ECOMM
  16. Finally measurement - we must measure everything (you can) for impact its having - both brand metrics & harder metrics Allowing you to account for impact it is having regardless of the campaign or business area the spend has come from Break down by media owners - who is really driving the results you need? Continuous measurement allows you to compare & monitor performance over time, working with partners to improve Once digital measurement is finalised look to intergate with offline measurement to have one complete measurement framework.
  17. The next thing to think about is the partners we work with. Again we need to think about how do we break down the boundries - if we are workign with partners who have both a digital & offline function how do we start to think about them holistically. We should not shy away from innovation - it offers us the opportunity to explore new areas and improve how we appraoch things. In addition to this due to us operating in multi markets, we have had to think about how we plan with partners and how this relationship differs at a category & local level. It is important to consider how to leverage the scale of a category team to help drive local efficency. These relationships will help drive growth Ref Ecomm
  18. The next thing to think about is the partners we work with. Again we need to think about how do we break down the boundries - if we are workign with partners who have both a digital & offline function how do we start to think about them holistically. We should not shy away from innovation - it offers us the opportunity to explore new areas and improve how we appraoch things. In addition to this due to us operating in multi markets, we have had to think about how we plan with partners and how this relationship differs at a category & local level. It is important to consider how to leverage the scale of a category team to help drive local efficency.
  19. The next thing to think about is the partners we work with. Again we need to think about how do we break down the boundries - if we are workign with partners who have both a digital & offline function how do we start to think about them holistically. We should not shy away from innovation - it offers us the opportunity to explore new areas and improve how we appraoch things. In addition to this due to us operating in multi markets, we have had to think about how we plan with partners and how this relationship differs at a category & local level. It is important to consider how to leverage the scale of a category team to help drive local efficency.
  20. When we consider the journey of embedding digital, there are 3 core stages to this. Firstly, its about building the foundations. Like any foundations these are critical to the future success as if these are not stable enough it will not proposer. The key to solid foundations being People. This is where you Next its about developing infrastructure – thinking about what tools & processes you need to success. This is really where strategy comes into play. And the final stage is about building new capability – so defining the structure that you will operate within and what this should look like
  21. When we consider the journey of embedding digital, there are 3 core stages to this. Firstly, its about building the foundations. Like any foundations these are critical to the future success as if these are not stable enough it will not proposer. The key to solid foundations being People. This is where you Next its about developing infrastructure – thinking about what tools & processes you need to success. This is really where strategy comes into play. And the final stage is about building new capability – so defining the structure that you will operate within and what this should look like