Pepsi, Frito-Lay Plan Joint Ads

NEW YORK – Pepsi-Cola and Frito-Lay are planning to combine their brand equity in new ads touting three consecutive joint promotions, starting with a “Halloween House Party” and leading up to Super Bowl XXXIII.
The combined initiative gained momentum following last week’s consolidation of Frito-Lay’s creative chores at lead Pepsi agency BBDO from DDB Needham, sources said. New ads, featuring both Pepsi and Frito-Lay products, are said to be on tap for the promotions. BBDO last week also picked up an additional $175 million in media duties for the beverage and snack divisions.
A closer alliance between Pepsi and Frito-Lay could bolster PepsiCo’s beverage division, which, sources said, has been stung by an uneven “Generation Next” campaign and rival Coca-Cola’s domination of the domestic soft drink market. Coke’s share was 37.1 percent in 1997, compared to Pepsi’s 33.2 percent, per Beverage Digest.
Combined, Frito-Lay and Pepsi get about $325 million in annual ad support, per Competitive Media Reporting.
The “Halloween House Party” promotion will kick off in late September. A second promotion is intended to drive year-end holiday sales, followed by a third to coincide with January’s “stock-up” period for the Super Bowl.
PepsiCo chief executive Roger Enrico has long been pushing a “Power of One” mantra, urging executives to marshall the company’s far-flung marketing resources to improve productivity with retailers, advertising agencies and consumers.