CPG Giants Share Business Strategies at Outlook 2021

When movie theaters shut down, sporting events were canceled and we all began shopping for groceries online, food and beverage companies were forced to lean into brand purpose to figure out what consumers really needed. Through real-time data collection and unconventional marketing, CPG companies were able to balance immediate results with growth ambition. At Adweek’s 2021 Outlook virtual event, chief marketing officers from PepsiCo and General Mills reflected on 2020 learnings while looking forward to the future of their brands. Think of yourself as more than a marketer After the pandemic hit, General Mills CMO Brad Hiranaga realized that the CPG giant had to support consumers in a deeper way. To do that, the company shifted from consumer wants to needs through what Hiranaga describes as "relentless innovation." General Mills has also been focused on fighting hunger worldwide through its Billion Acts of Good program, which is now a central part of the brand's mission. “If we’re not making people’s lives better in the food that we deliver, then we’re not really doing our job,” Hiranaga said. “Our 'force for good' statement is now part of our brand anatomy. We have to be thinking bigger about our jobs and working collaboratively.” Use real-time data Instead of relying on bi-annual reports, PepsiCo has been able to track changing consumer behavior with transparent, first-party data. Under CMO Greg Lyons' leadership, the company has honed in on performance marketing, which has allowed the brand to become more nimble in its spending decisions. In 2020, the company rolled out specialty cookbooks, delivered products directly to consumers and supported Black-owned restaurants. “We are very good at creative, but we are not necessarily excellent at performance marketing,” Lyons said. “We need to be accountable for the ROI for the money that we spent. We are on a journey to make better and faster decisions, and in-house data help us on that journey.” This strategy has paid off, as the company’s ROI has gone up by 66% in the last few years, according to Lyons. After making these adjustments, the brand had the flexibility to roll out new products that consumers needed throughout the pandemic like Propel Immune Support and the sleep-aid drink Driftwell. “We were able to do that in record time because we had the data at our fingertips and we weren’t waiting for that yearly report,” he said. Don’t let revenue distract from consumer connection Lyons also stressed that while real-time data is a necessary tool, it is important to remember that an authentic consumer connection is only possible when a brand thinks beyond short-term ROI. “The thing that worries me the most is that the relationship could become transactional,” said Lyons. “If we’re focusing on real-time and short returns, we might miss the bigger picture on how to have the relationships. At Pepsi, we try to prioritize both of those things together.” General Mills has also leaned into this strategy by making short-term decisions while also focusing on their long-term purpose of “solving problems and delivering joy.” “We can craft a vision of growth while still understanding what needs to be done today,” Hiranaga said. See more of Adweek’s 2021 Outlook coverage, including deep dives from our editors into the future of marketing.

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General Mills and PepsiCo Share Winning Strategies to Accelerate Business

On the importance of a nimble brand strategy at Adweek's Outlook 2021

Think of yourself as more than a marketer

Emmy Liederman

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Emmy Liederman