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PepsiCo to up ad spend, trim agencies from 150 to 50
MUMBAI: Calling 2012 a transition year, PepsiCo announced that it will be adding to the advertising spends kitty. In a strategy to position itself for growth, the company also said it will reduce the agencies on its roster and lay off employese while adding to the A&P spends.
As reported in the Ad Age, the company will invest an additional $500 million to $600 million to advertise its brands this year following a six month review, with a focus on North America. Up to $100 million in additional spending will focus on things like in-store display racks.
In the coming years as well, PepsiCo will maintain or increase that rate of support to maintain ad spending as a particular percentage of revenue.
According to an analysis from Jefferies & Co. as a percentage of sales Coca-Cola spent 8 per cent on marketing in 2010 while PepsiCo spent just 3 per cent on its beverage brands.
PepsiCo CEO Indra Nooyi is looking to boost U.S. beverage sales and regain market share from Coca-Cola.
It is reported that the additional spending will focus on a dozen core brands like Pepsi, Gatorade, Tropicana, Mtn Dew, Sierra Mist, Lipton, Mirinda, Lay‘s, Sun Chips, Cheetos, Doritos and Quaker rather than spreading it across a wide swathe of its beverage and snack brands.
PepsiCo said it will reduce the number of agency partners in the beverages section from 150 to 50 in order to make way for the new investments. Currently TBWA /Chiat/Day manages the Pepsi trademark in the U.S. as well as Gatorade and Tostitos. BBDO works with Mountain Dew and remains involved with the Pepsi trademark globally. Goodby Silverstein & Partners handles Cheetos and Doritos while Energy BBDO is responsible for Lay‘s and Sun Chips.
The company recently added Brad Jakeman as president-global enjoyment and chief creative officer and Lorraine Hansen as senior VP-global hydration.
It has also been reported that the company is in plans to lay off 8,700 employees or about 3 per cent of PepsiCo ‘s global workforce across 30 countries. The company says it will reduce costs by an incremental $1.5 billion in the next three years with $500 million in savings each year.
MAM
Barista partners Ginny Weds Sunny 2 with mango campaign
Cafe chain blends cinema buzz with summer menu and 20 per cent offer.
MUMBAI: Love may brew slowly, but marketing clearly doesn’t especially when coffee meets cinema and mangoes steal the spotlight. Barista Coffee Company has partnered with the upcoming hindi film Ginny Weds Sunny 2 as its official beverage partner, in a move aimed at tapping into youth culture through entertainment-led engagement. The collaboration is not just a logo placement exercise. Instead, Barista is translating the film’s high-energy vibe into its cafés with a themed summer menu titled “Main Hoon Mango”, accompanied by a limited-period 20 per cent discount on combo offerings across outlets.
Actors Medha Shankr and Avinash Tiwary feature in the campaign, seen engaging with the mango-themed menu inside Barista cafés, a visual cue designed to blur the lines between reel and real-life consumption moments.
The strategy reflects a broader shift in how consumer brands are leveraging hindi film industry not just for visibility, but for immersive, on-ground engagement. By embedding the film’s narrative into its product experience, Barista is aiming to drive footfall, especially among younger audiences who increasingly seek experiential touchpoints over traditional advertising.
Barista Coffee Company CEO Rajat Agrawal described the partnership as both a branding and growth play, focused on expanding reach beyond the existing customer base and aligning with evolving consumer preferences.
The emphasis on a seasonal, flavour-led hook mango, one of India’s most culturally resonant ingredients adds a timely layer to the campaign, aligning with summer consumption trends while riding on the film’s promotional momentum.
For Barista, the move is part of a larger positioning shift. Rather than operating purely as a coffee retail chain, the brand is increasingly framing itself as a lifestyle destination, one that intersects with entertainment, conversation and shared experiences. By integrating cinema into its physical spaces, Barista is effectively turning cafés into micro-extensions of the film’s universe, where consumers do not just watch a story unfold but participate in it sip by sip.
The 20 per cent offer further nudges trial, lowering the barrier for consumers to engage with the themed menu while amplifying recall through a tangible incentive.
Brand-film collaborations are hardly new, but their execution is evolving. Where earlier partnerships relied on co-branded ads or product placements, the current playbook leans towards immersive storytelling and retail integration.
In that sense, Barista’s “Main Hoon Mango” push is less about promotion and more about participation inviting consumers to experience a slice of the film within a familiar, everyday setting. As the film industry continues to act as a cultural amplifier, such partnerships underline a growing truth, in today’s attention economy, it is not enough to be seen brands must be experienced.
And if that experience comes with a mango twist and a cinematic backdrop, all the better.
