Presentation on theme: "PepsiCo & Stakeholder Engagement Enhancing Enterprise Value"— Presentation transcript:
1 PepsiCo & Stakeholder Engagement Enhancing Enterprise Value
October 24, 2012
2 Critical Thinking At The Critical Time
FTI Consulting is a global business advisory firm that provides multidisciplinary solutions that help clients address complex business opportunities and challenges.We are 3,800 trusted advisors with diverse expertise and exceptional credentials serving clients globallyWe combine unparalleled expertise and industry knowledge to address challenges to enterprise valueOur breadth and depth extends across every social, political, and economic hub across the globe
3 Our Global NetworkBroad global reach encompassing approximately 700 strategic communications experts and a total of 3,800 business consultants in 23 countries around the worldProven ability to manage global issues with local expertiseBrusselsChicagoPittsburghDublinTorontoBerlinLondonMoscowFrankfurtBeijingSanFranciscoParisBostonNew YorkLos AngelesPhiladelphiaNew DelhiWashington DCDohaShanghaiManamahHong KongAbu DhabiDubaiPanama CitySingaporeBogotaSao PauloJohannesburgPerthCape TownMelbourneSydney
4 The PepsiCo TeamThe FTI PepsiCo team will be staffed with an integrated team of experienced professionals who focus on the food and beverage industry.Beth SaundersStrategic CounselBob KnottProgram DirectorJeannine DowlingMgr., Stakeholder EngagementLinda MayerAnshula AhluwaliaJohn WattsMgr., Stakeholder Identification & MappingJocelyn LandauJeremy RuchMitzi EmrichOnline EngagementSacha MohabeerAdam Sopko
5 Helping Brand And Market Leaders Advance Their Businesses
Created an engagement strategy to help deepen stakeholder’s commitment and belief to its new CEO’s Vision 2020.Reinforced the company’s market leadership and reputation, despite the commoditization sweeping the insurance industry, while raising its profile as a leading advocate for the economic wellbeing of America’s middle class.Communicated transformation and long-term strategy to position the company as a leader in science and innovation.Managed the communications surrounding the explosion of its Deepwater Horizon rig, widely characterized as the BP Oil Spill, including the engagement of various internal and external stakeholders regarding the company’s ongoing operations.Created a grassroots strategy that engaged consumers to combat pending state and federal legislation that would adversely affect the company’s corporate strategy.Worked with executive management to raise visibility in the US and create a new positioning theme. Facilitated introductions between Tata executives to develop US-based relationships.
6 Our Unique Approach: Enhancing Enterprise Value
FTI is uniquely capable of developing and implementing communication campaigns that enhance and protect a company’s enterprise value.Our approach emphasizes the effective engagement of employees, customers, governmental publics and third parties, in addition to investors, analysts and other members of the financial community — a diversity of essential stakeholders we are uniformly adept at reaching and influencing.Through the use of unified messages that resonate with each of these stakeholders, as well as a coordinated approach to communications, FTI not only enables companies to achieve committed workforces, reputational leadership and an increased license to operate, but also an optimal valuation of their stock.
7 Our Approach: How It Works
.Engaged Leadership, Committed WorkforceReputational Leadership with Opinion Leaders and PartnersOptimal Valuation in Capital MarketsLicense to Operate with Public and RegulatorsEnterprise ValueBehaviorsBehaviorsThoughtfully consider and internalize management’s plansAnalysts echo PepsiCo viewsAttract / retain desired investor baseProvide “time” when needed, based on belief in managementCommitment to companyProductivityCompany ambassadorship / active articulation of PepsiCo’s perspectiveBehaviors.Behaviors:BehaviorsArticulate the economic importance of PepsiCo and the industryAcknowledge PepsiCo’s contributions / leadershipListen to and incorporate PepsiCo viewsRefrain from or amend restrictive laws / regulationsConstructively engage with PepsiCo in public forumsCite or refer to PepsiCo and PepsiCo experts’ views positivelyUnderstand and internalize all of PepsiCo’s strategic directions
8 Understanding PepsiCo’s Objectives
Develop a comprehensive influencer engagement strategy and program that will:Increase the credibility and resonance of PepsiCo’s near- and long-term business strategyEducate and increase understanding of PepsiCo’s position around key issuesEnsure the perception of PepsiCo’s past and present trajectory is validated and amplifiedThis program will operationalize PepsiCo’s strategic goals:Brand BuildingInnovationProductivityExecutionReturn to Shareholders
9 Attitudes and opinions in the U.S. of the food and beverage industry
10 Questions Consumers Are Asking
Where was this manufactured?Packaged food used to be a convenience that was simply enjoyed. Now it’s a loaded gun. Questions and concerns have created a series of global trends that impact the reputations – and bottom lines – of food companies operating in an increasingly complex environment.How was it produced?What does your environmental footprint look like?What are the ingredients?Does this soda contain high fructose corn syrup?Should I be focused on getting more protein into my breakfast?How do you treat your farmers, suppliers and employees?
11 Understanding The Industry and External Pressures
12 Obesity Influences the Dialogue
There’s a growing global health paradox: while people in developing nations are increasingly overweight, many of these consumers are undernourished. Fast food, processed foods, sweets and snacks may be part of the problem, but they fit seamlessly into a broader story that few stakeholders fully understand. As a result of this landscape, regulators, health professionals and industry leaders have become more focused on calories from beverages and processed foods, while also increasing their scrutiny of food labels and health claims and industry-supported research.
13 Social Media is Mainstream Media
What makes the current food environment so daunting is the connectivity of the digital age. Social media often drives or amplifies what happens in traditional channels such as top-tier daily publications or online news and commentary channels. Conversations and content about nutrition, health and food products are amplified through the food community, creating an echo chamber that often starts with experts and is carried by enthusiasts and average consumers.
14 The Rise of the “Corp-sumer”
When it comes to issues and advocacy, consumers and activists have more than an opinion – they have a voice. Consumers are passionate about their food choices and about the companies they buy from; they’ll take action for or against you based on how you engage with them on the issues and initiatives they care about.
15 A New Issue Import/Export Dynamic
As multi-nationals enter new markets, the old paradigm of food issues being limited to developed markets and by geographic boundaries has changed. As markets develop, issues develop with them and new influencers join others in driving conversations. Navigating the complexity now and engaging in meaningful ways is critical to success.
16 “Glocal” Thinking and Doing is a Must
What we eat has personal, political, social, environmental and economic implications across the globe. From obesity to food ingredients, sustainability to food safety, food security to commodities pricing, food issues dominate our global and local food dialogues, and shape the way companies and industries enter new markets and do business in those markets. Understanding the issues that are being discussed at the local and regional levels, the influencers who are driving those conversations, and the nuances of local and regional market engagement is critical to your success.
17 Influencers Use Peer-to-Peer Networks to Create Social Currency
Deeply engaging financial thought leaders, health professionals, influencers and other stakeholders means reaching them in the online communities they know and regularly use. Creating a unique presence on the niche social networks that are important to key audiences helps build credibility and trust – relationships that start online can become the foundation for finding vocal supporters who can take action offline.
18 How Others In the Industry Are Reacting to the Landscape
From Candy to Innovation: With the world’s cocoa supply at risk, concentrated primarily in West Africa and susceptible to disease, and stakeholders calling for support of impoverished cocoa farmers, Mars decided to take action. In mapping the cocoa genome, Mars was seen as a leader, bringing solutions to a delicate agricultural and economic problem.More than Just Coffee: While suffering declining financial returns and an increasingly competitive market, Starbucks heralded the return of CEO Howard Schultz and highlighted its deep bench of talented executives by partnering its thought leaders with select stakeholders in a series of global conversations, securing the company’s corporate reputation as a leader in not just coffee, but in responsible capitalism, corporate citizenship and sustainability.Thinking Local: In the wake of a series of crises over the sourcing and ingredients of products sold in its restaurants, Yum! launched a global program that tracked and anticipated food and nutrition-related issues and influencers, leading to many of its brands announcing reformulated products based on unique market demands around the world.Healthy Food Initiative: After successfully demonstrating that sustainable products should not and do not need to cost more for its customers, Walmart brought those same principles to healthy foods. Declaring that no family should ever have to make a choice between foods they can afford and foods that are good for them, Walmart announced a program with Michelle Obama’s Let’s Move! that includes working with manufacturers to reformulate packaged goods, creating its own healthy foods seal, and lowering prices on fruits and vegetables.
19 Stakeholder Identification & Mapping
20 PepsiCo’s Essential Stakeholders
Health and Nutritional GroupsFinancial CommunityGovernmental PublicsHealth ProfessionalsKey Opinion MakersBloggers, Citizen JournalistsNews MediaOnline Community
21 Stakeholder Mapping on Parallel Paths
ImmediatelyPhase 1Phase 2Identify hot spotsManage brush firesIdentify the most vocal, credible and trusted sourcesONLINE MAPPINGParallel paths address near-term opportunity and long-term, documentable results.Reach out and engage the most vocal, credible and trusted sourcesManage and drive the conversationMap stakeholders by current vs. desired attitudes and behaviors, influence, and impact on achievement of our business objectivesRESEARCH-LEAD MAPPINGDevelop plans for most vocal, influenceable, influential and valuableTrack success via measures of opinion, engagement and behavior
22 The Research-led Mapping Process
To facilitate effective engagement over the long-term,we take a structured approach to mapping stakeholdersand design communications that drive engagement and behavior.PLAN OBJECTIVESDesign “backwards” from the themes and message we wish to establish.IDENTIFYID stakeholder groups, critical sub-segments.MEASUREDevelop measurement relative to influence and perceptions across groups.MAPMap stakeholders based on influence and perception.ANALYZEPlan strategies and tactics using each groups specific attitudes and behaviors.ADDRESS ISSUESPlan “special weapons and tactics” to address unique situations and opportunities.
23 The Research-led Mapping Process
PLAN OBJECTIVESIDENTIFYMEASUREMAPANALYZESTRATEGY CREATIONWhile PepsiCo has clear strategic vision and initially-identified stakeholders, a research-driven approach will ensure we know precisely “who” needs to hear “what” and “how.”The objectives developed in this stage will operationalize PepsiCo’s strategic goals:Brand BuildingInnovationProductivityExecutionReturn to Shareholders
24 The Research-led Mapping Process
PLAN OBJECTIVESIDENTIFYMEASUREMAPANALYZESTRATEGY CREATIONThe resulting stakeholder map provides a holistic view of your messaging landscape, along with strategic and tactical insights.Certain “loud voices” may be unmovable, and require development of credible surrogates more likely to support PepsiCo while we identify the key advocates we need to continue to engage.Ability to InfluenceLevel of Engagement
25 The Research-led Mapping Process
PLAN OBJECTIVESIDENTIFYMEASUREMAPANALYZESTRATEGY CREATIONKey Opinion Leaders frame and lead the debate. They are informed, vocal and have an impact beyond their own group.Broader Opinion Elites have an interest in the issue and a degree of influence in its outcome. They can play a more active role if engaged.Informed Influencers are able to influence groups above but have no decision making capacity in official debates.At the top of the pyramid, special strategies are often required.Focusing on “the” issue of most interest to the individual is both possible and critical.Whether due to beliefs, position or role, some can be intractable and immovable, requiring development of other equally credible individuals to articulate “your” view.Engagement & Influence
26 Digital Stakeholder Identification and Mapping
By mapping digital stakeholders, PepsiCo can identify online personalities who have the potential to become vocal online ambassadors for the company’s initiatives and designate an approach for activating them.EngagementInfluencePopularityTrustMeasure Online AuthorityEnsure Participation in Relevant ConversationUncover Shared InterestsDevelop Opportunities for PartnershipFTI’s Process for Digital Stakeholder MappingFooducateMomRNTreeHuggerJollyTomatoSuperHealthyKidsKeyFood PolicyHealth and NutritionConsumersSourcing and Supply Chain
27 Amplifying Messages Throughout the Food Community
Online conversation shapes media coverage, government action and consumer opinion –ultimately impacting a company’s bottom line. Conversations about the business and social impacts of food are shared and reverberate amongst a tight-knit group of stakeholders who are deeply connected to PepsiCo and its competitors, providing the opportunity to reach broad audiences by targeting a few key digital influencers.Food Advocates & EnthusiastsFood & Nutrition ExpertsConsumersMarket
28 Identifying Short-term Hotspots
A multi-stakeholder world means opinions are formed across diverse channels, a debate can start anywhere and new influencers can rise to prominence each day.Navigating the complexity and engaging stakeholders in meaningful ways is critical to success, but PepsiCo must first start with the potential allies and influencers who are the most vocal, credible and trusted sources of information.FTI will immediately leverage its global heat-mapping tool to identify and chart a course for engaging prime stakeholders early, securing initial wins that will help PepsiCo establish broader relationships in key communities.
29 Stakeholder Engagement
30 Our Principles to Advance Engagement
Authentic engagement underlies all strategic alliance development effortsGuided by Goals1Relationship Based2Connected to Strategy Outcomes3
31 Steps to Cultivating Stakeholders
12345Frame messages for individualEngage stakeholdersMeasure results in real timeRespond accordinglyIdentify individuals’ attributes and commitment
32 Build Relationships with Potential Advocates
Incentivize with insights and unique experiences Build proactive and offline relationships by giving stakeholders exclusive and advanced access to products, internal experts, tools and programs before they are launched. Leverage partnerships with reputable offline groups to promote the progress of PepsiCo’s initiatives and help stakeholders understand the company’s relationships with credible groups. Provide regular comments on news and issues core to PepsiCo’s business, offering a unique and reliable perspective on prominent issues.Take the lead in making the issues accessibleEducate diverse audiences with engaging information in the form of videos, interactive infographics and other multimedia to share perspectives and messages unique to PepsiCo.Have a presence where your advocates spend their timeLeverage channel-specific conversations and engage potential allies and partners through unique online events like Twitter chats and communities like LinkedIn.
33 Using Mapping to Guide Strategy and Tactics
Once the identification process is complete, stakeholders will be mapped against “influence” and “level of engagement” to guide decisions on strategic communications tactics.
34 Contact ManagementContact detail: store typical contact information (address, phone, , etc.).Custom fields: create limitless data points to categorize contacts; store additional relevant info; page view can be collapsed for accessibility.Tracking & ownership: assign contact owner, monitor when record created or last updated.
35 Performance Metrics
36 Measuring Performance Against Objectives
Our programs center around measurement. We will work in partnership with your team to create a shared vision of success at the outset of the program based on:OUTPUTSFTI work productsProject management / tracking tools, including contact tracking (e.g. via Salesforce or similar)Activity tracking, by period and by key stakeholder group.Examples:# briefings / meetings# contacts made# site visits driven in# articles placed citing key messages# blog mentions citing key messagesIMPACTSChanged opinions, attitudes, beliefs / knowledge, “leading indicators”Periodic pulse checks via in-depth interviews among KOLs and other specialist groups,Delphi panel responses,Survey larger groups (public influentials, investors),Media auditsExamples:Volume and % favorable media coverageVolume and % favorable social media discussion% of message penetration, with or without PepsiCo attribution% who know PepsiCo’s position% hearing/believing messages% with aligned viewsOUTCOMESChanged behaviorCommunications / contact tracking tools (e.g. Salesforce or similar)Media audits / tracking including traditional and social channels, by influenceRegulatory filings / state and local codesExamples:# requests for information# attending conferences / eventsVolume and % actively articulating preferred viewsVolume and % favorable media coverageVolume and % favorable social media discussion# 3rd party endorsements# (foreseen) unfavorable laws / regulations avoided or modifiedFocusToolsExamples− 36 −
37 Institutionalizing Relationships
Institutionalizing relationships between PepsiCo and its key influencers through a contact management system will help knowledge-sharing across the FTI and PepsiCo team as well as create a database of information to be used long-term, ultimately driving these relationships across the PepsiCo enterprise.
39 Team Biographies Beth Saunders, Senior Managing Director
Elizabeth Saunders is a Senior Managing Director and Americas chairman of the FTI Strategic Communications practice and is based in Chicago. Ms. Saunders specializes in building best practices investor relations programs across a wide spectrum of clients. She also serves as senior counsel for business transformation assignments and has actively worked on post merger communications, CEO transitions, and restructurings for Fortune 500 Companies including The Coca-Cola Company and Dow Chemical. She has also worked extensively in the technology space with companies including Dell, Symantec and Juniper.Prior to her role at FTI Consulting, Ms. Saunders co-founded Ashton Partners in 1997, a strategic advisory firm focused on financial communications. Ashton Partners was one of the country's top 15 independent investor relations firms. Prior to founding Ashton Partners, Ms. Saunders was the President and Chief Operating Officer of the investor relations consulting arm of Thomson Financial Services. Before this, she created and managed the Shareholder Services division of the Financial Relations Board. Earlier in her career, Ms. Saunders served as an analyst for Inland Steel’s Pension Fund and a senior analyst for Monticello Investments, a Chicago area merchant banking firm.Bob Knott, Senior Managing DirectorBob Knott is a Senior Managing Director, FTI Consulting Strategic Communications practice, and leads the firm’s corporate communications practice throughout the Americas. An expert in organizational positioning, reputation and issues management, thought leadership and stakeholder identification, mapping and engagement, Mr. Knott has developed and executed integrated communications campaigns on behalf of Fortune 500 companies and trade associations in a diversity of sectors.Prior to joining FTI Consulting, Mr. Knott was a global practice chairman and global client relationship manager at Edelman, where he managed many of the firm’s largest and most high profile client engagements. Mr. Knott managed the global launch of GE’s ecomagination, while overseeing Edelman’s worldwide work for the conglomerate.At Edelman, Bob established the Field to Fork Survey Series—the firm’s annual study comparing and contrasting the attitudes of adult primary grocery shoppers nationwide and Washington DC-based opinion elites about the food they eat, its impact on society and the extent to which government should regulate it.
40 Team Biographies Mitzi Emrich, Managing Director
Jeannine Dowling, Managing DirectorJeannine Dowling is a senior member of FTI's Corporate Communications Practice and is based in New York. Jeannine has spent the last twenty years working with high profile global consumer products companies operating in highly regulated industries or highly publicized environments. She is a communications executive with tested experience in all communications environments from business to lifestyle. She specializes in reputation management, corporate positioning and stakeholder engagement. She effectively leverages multiple communications channels on a global platform to enhance corporate reputation and brand heritage and promote both top and bottom line growth.Prior to joining FTI, Jeannine was Senior Vice President of Corporate Affairs for Diageo NA., the largest beer, wine and spirits company in the world. At Diageo Jeannine led a multidisciplinary team responsible for the organization's brand and corporate communications. Jeannine has a wealth of front-line experience in managing the daunting regulatory, legislative and social policy challenges inherent in the beverage alcohol industry in the US. Before joining Diageo, Jeannine was a Vice President in Government Affairs for New York Life Insurance Company, and served as Director of Public Affairs at Philip Morris (now Altria).Mitzi Emrich, Managing DirectorWith more than 12 years in strategic communications and an expertise in social media, Mitzi Emrich has helped Fortune 100 clients from the health and retail sectors develop and integrate social media strategies into corporate communications and marketing initiatives aimed at consumers, influencers, and decision-makers. At FTI Consulting, Mitzi leads a team of digital strategists dedicated to helping clients protect and bolster their reputations in the digital space and build online experiences for social communities.During her career, Mitzi has focused on several food and nutrition clients. Having led the digital communications effort for Walmart and Sam’s Club, she helped the companies connect with stakeholders online through multi-channel tactics including social business strategy, blogger relations, social network engagement, website development and conversation analysis; as part of her work for Walmart, Mitzi supported the company during the development and launch of its groundbreaking Healthy Food Initiative with First Lady Michelle Obama.
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