PepsiCo & Stakeholder Engagement Enhancing Enterprise Value November 2012 Presenters: Bob Knott,...
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PepsiCo & Stakeholder Engagement Enhancing Enterprise Value November 2012 Presenters: Bob Knott, Senior Managing Director Mitzi Emrich, Managing Director
PepsiCo & Stakeholder Engagement Enhancing Enterprise Value
November 2012 Presenters: Bob Knott, Senior Managing Director Mitzi
Emrich, Managing Director
Slide 2
2 We are 3,800 trusted advisors with diverse expertise and
exceptional credentials serving clients globally We combine
unparalleled expertise and industry knowledge to address challenges
to enterprise value Our breadth and depth extends across every
social, political, and economic hub across the globe Critical
Thinking At The Critical Time 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9
20 40 60 80 100 120 140 160 180 FTI Consulting is a global business
advisory firm that provides multidisciplinary solutions that help
clients address complex business opportunities and challenges.
Slide 3
Our Global Network 3 Broad global reach encompassing
approximately 700 strategic communications experts and a total of
3,800 business consultants in 23 countries around the world Proven
ability to manage global issues with local expertise
Slide 4
4 The PepsiCo Team The FTI PepsiCo team will be staffed with an
integrated team of experienced professionals who focus on the food
and beverage industry. Bob Knott Program Director Beth Saunders
Strategic Counsel Jeannine Dowling Mgr., Stakeholder Engagement
John Watts Mgr., Stakeholder Identification & Mapping Mitzi
Emrich Online Engagement Linda Mayer Jocelyn Landau Sacha Mohabeer
Anshula Ahluwalia Jeremy Ruch Adam Sopko
Slide 5
Helping Brand And Market Leaders Advance Their Businesses 5
Created an engagement strategy to help deepen stakeholders
commitment and belief to its new CEOs Vision 2020. Communicated
transformation and long-term strategy to position the company as a
leader in science and innovation. Created a grassroots strategy
that engaged consumers to combat pending state and federal
legislation that would adversely affect the companys corporate
strategy. Reinforced the companys market leadership and reputation,
despite the commoditization sweeping the insurance industry, while
raising its profile as a leading advocate for the economic
wellbeing of Americas middle class. 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 companys
ongoing operations. 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.
Slide 6
Our Unique Approach: Enhancing Enterprise Value 6 FTI is
uniquely capable of developing and implementing communication
campaigns that enhance and protect a companys 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.
Slide 7
Behaviors Constructively engage with PepsiCo in public forums
Cite or refer to PepsiCo and PepsiCo experts views positively
Understand and internalize all of PepsiCos strategic directions
Behaviors Commitment to company Productivity Company ambassadorship
/ active articulation of PepsiCos perspective Articulate the
economic importance of PepsiCo and the industry Acknowledge
PepsiCos contributions / leadership Listen to and incorporate
PepsiCo views Refrain from or amend restrictive laws / regulations
Behaviors Thoughtfully consider and internalize managements plans
Analysts echo PepsiCo views Attract / retain desired investor base
Provide time when needed, based on belief in management Behaviors
Our Approach: How It Works 7
Slide 8
8 Develop a comprehensive influencer engagement strategy and
program that will: This program will operationalize PepsiCos
strategic goals: Understanding PepsiCos Objectives Increase the
credibility and resonance of PepsiCos near and long-term business
strategy Brand Building Innovation Execution Productivity Return to
Shareholders Educate and increase understanding of PepsiCos
position around key issues Ensure the perception of PepsiCos past
and present trajectory is validated and amplified
Slide 9
ATTITUDES AND OPINIONS IN THE U.S. OF THE FOOD AND BEVERAGE
INDUSTRY
Slide 10
Packaged food used to be a convenience that was simply enjoyed.
Now its 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.
Questions Consumers Are Asking 10
Slide 11
11 11 Understanding The Industry and External Pressures
Slide 12
Title Needed 12 Regulators, health professionals and industry
leaders have become more focused on calories from beverages and
processed foods. Obesity Influences the Dialogue Conversations and
content about nutrition, health and food products are amplified
through the food community, creating an echo chamber. Consumers are
passionate about their food choices and about the companies they
buy from The Rise of the Corp-sumer Social Media is Mainstream
Media
Slide 13
Title Needed 13 Old paradigm of food issues being limited to
developed markets and by geographic boundaries has changed. 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.
Creating a unique presence on the niche social networks that are
important to key audiences helps build credibility and trust.
Global Thinking and Doing is a MustA New Issue Import/Export
Dynamic User Networks to Create Social Currency
Slide 14
How Others In the Industry Are Reacting to the Landscape 14
From Candy to Innovation: With the worlds 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. 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. 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
companys corporate reputation as a leader in not just coffee, but
in responsible capitalism, corporate citizenship and
sustainability. 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 Obamas
Lets Move! that includes working with manufacturers to reformulate
packaged goods, creating its own healthy foods seal, and lowering
prices on fruits and vegetables..
Slide 15
STAKEHOLDER IDENTIFICATION & MAPPING
Slide 16
PepsiCos Essential Stakeholders Health Professionals Financial
Community Governmental Publics Key Opinion Makers Bloggers, Citizen
Journalists News Media Online Influencers
Slide 17
Stakeholder Mapping on Parallel Paths Immediately Phase 1Phase
2 ONLINE MAPPING. RESEARCH-LEAD MAPPING Parallel paths address
near-term opportunity and long- term, documentable results.
Identify Hot Spots Manage brush fires Identify the most vocal,
credible and trusted sources Manage and drive the conversation Map
stakeholders by current vs. desired attitudes and behaviors,
influence, and impact on achievement of our business objectives
Reach out and engage the most vocal, credible and trusted sources
Develop plans for most vocal, influenceable, influential and
valuable Track success via measures of opinion, engagement and
behavior
Slide 18
The Research-led Mapping Process To facilitate effective
engagement over the long-term, we take a structured approach to
mapping stakeholders and design communications that drive
engagement and behavior.
Slide 19
The Research-led Mapping Process While 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 PepsiCos strategic goals: Brand Building Innovation
Productivity Execution Return to Shareholders PLAN OBJECTIVES
IDENTIFYMEASUREMAPANALYZE STRATEGY CREATION
Slide 20
The Research-led Mapping Process Ability to Influence Level of
Engagement The 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.
PLAN OBJECTIVES IDENTIFYMEASUREMAPANALYZE STRATEGY CREATION
Slide 21
The Research-led Mapping Process 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
PLAN OBJECTIVES IDENTIFYMEASUREMAPANALYZE STRATEGY CREATION
Slide 22
The Research-led Mapping Process 0 20 40 60 80 10 0 Key Opinion
Leaders frame and lead the debate. They are informed, vocal and
have an impact beyond their own group. 0 20 40 60 80 10 0 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. 0 20 40 60 80 10 0 Informed Influencers are able to
influence groups above but have no decision making capacity in
official debates 100%100%100%
Slide 23
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
companys initiatives and designate an approach for activating them.
Measure Online Authority Ensure Participation in Relevant
Conversation Uncover Shared Interests Develop Opportunities for
Partnership FTIs Process for Digital Stakeholder Mapping Engagement
Influence Popularity Trust TreeHugger Fooducate Mom RN
SuperHealthyKids Jolly Tomato
Slide 24
Amplifying Messages Throughout the Food Community Online
conversation shapes media coverage, government action and consumer
opinion ultimately impacting a companys 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 & Enthusiasts Food & Nutrition
Experts Consumers
Slide 25
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.
Slide 26
STAKEHOLDER ENGAGEMENT
Slide 27
Our Principles to Advance Engagement 27 Guided by Goals 1
Relation ship Based 2 Connect ed to Strategy Outcom es 3 Authentic
engagement underlies all strategic alliance development
efforts
Slide 28
9.5 9.9 9.5 0246810 0246810 0246810 Connected to Strategy
Outcomes Relationship Based Guided by Goals 9.7 1 0 2 3 4 5 6 7 8 9
10 Authentic engagement underlies all strategic alliance
development efforts Our Principles to Advance Engagement 28
Slide 29
Steps to Cultivating Stakeholders 29 Frame messages for
individual Engage stakeholders Measure results in real time Respond
accordingly Identify individuals attributes and commitment
Slide 30
Build Relationships with Potential Advocates 30 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 PepsiCos initiatives and help stakeholders
understand the companys relationships with credible groups. Provide
regular comments on news and issues core to PepsiCos business,
offering a unique and reliable perspective on prominent issues.
Take the lead in making the issues accessible Educate 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 time
Slide 31
Using Mapping to Guide Strategy and Tactics 31 Once the
identification process is complete, stakeholders will be mapped
against influence and level of engagement to guide decisions on
strategic communications tactics.
Slide 32
Contact Management 32 Contact detail: store typical contact
information (address, phone, email, 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.
Slide 33
PERFORMANCE METRICS
Slide 34
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: 34 OUTPUTSIMPACTSOUTCOMES
FocusFTI work productsChanged opinions, attitudes, beliefs /
knowledge, leading indicators Changed behavior ToolsProject
management / tracking tools, including contact tracking (e.g. via
Salesforce or similar) Periodic pulse checks via in-depth
interviews among KOLs and other specialist groups, Delphi panel
responses, Survey larger groups (public influentials, investors),
Media audits Communications / contact tracking tools (e.g.
Salesforce or similar) Media audits / tracking including
traditional and social channels, by influence Regulatory filings /
state and local codes Examples 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 messages 1200 Examples: Volume and %
favorable media coverage Volume and % favorable social media
discussion % of message penetration, with or without PepsiCo
attribution % who know PepsiCos position % hearing/believing
messages % with aligned views Examples: # requests for information
# attending conferences / events Volume and % actively articulating
preferred views Volume and % favorable media coverage Volume and %
favorable social media discussion # 3 rd party endorsements #
(foreseen) unfavorable laws / regulations avoided or modified
Slide 35
Institutionalizing Relationships 35 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.
Slide 36
Biographies
Slide 37
37 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
Steels Pension Fund and a senior analyst for Monticello
Investments, a Chicago area merchant banking firm.
Slide 38
38 Bob Knott, Senior Managing Director Bob Knott is a Senior
Managing Director, FTI Consulting Strategic Communications
practice, and leads the firms 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 firms largest and
most high profile client engagements. Mr. Knott managed the global
launch of GEs ecomagination, while overseeing Edelmans worldwide
work for the conglomerate. At Edelman, Bob established the Field to
Fork Survey Seriesthe firms 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.
Slide 39
39 Jeannine Dowling, Managing Director Jeannine 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).
Slide 40
40 Mitzi Emrich, Managing Director With 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 Sams
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. Prior to joining FTI Consulting, Mitzi served as a Senior
Vice PresidentGroup Head at Edelman Public Relations and she
previously worked as a lobbyist and grassroots organizer for the
Sierra Club in Washington, DC.
Slide 41
41 John Watts, Managing Director John Stuart Watts is a
Managing Director in FTIs Strategic Communications Practice, where
he leads Research and Strategy work focused on Corporate
Communications. The group offers full-service research services,
including the design, management and analysis of research using a
full suite of data gathering and advanced analytical and modeling
tools. Johns personal focus is on the application of these tools to
business strategy, corporate communications, reputation and brand,
and customer experience. John joined FTI with 20+ years experience
in market research, strategic consulting and teaching/research in
the worlds top business schools. His previous experience includes
serving as a Managing Director at Vivaldi Partners. Earlier, he was
a Senior Vice President and Global Managing Director at the Opinion
Research Corporation, a leading primary research house, reporting
to the CEO and overseeing the firms Value Based Marketing and
Decision Science practices. As ORCs Global Managing Director for
Decision Sciences, John oversaw the design, analysis, supervision
and delivery of numerous studies including brand, customer
experience and decision processes, market segmentation, market
size, product features and pricing. John has also served as a
Senior Manager in the Strategy, Telecommunications and High
Technology practices at Ernst & Young Consulting, Accenture and
PRTM, and as an independent consultant.
Slide 42
42 Jocelyn Landau, Senior Director Jocelyn Landau is a Senior
Director in the Strategic Communications Practice of FTI
Consulting, based in New York City. Jocelyn has over nine years of
experience in communications and research, specializing in public
affairs, healthcare/life sciences and energy. Jocelyn has extensive
experience in survey research, message testing, marketing,
communications strategy and campaigns, as well as rigorous training
in quantitative and qualitative research methods. She has conducted
numerous telephone and online polls covering a range of issues in
politics, policy and healthcare. Jocelyn is currently engaged in a
variety of strategic consulting projects, including reputation
management, market segmentation, industry thought leadership,
stakeholder perception audits, brand and customer experience
improvement, coalition building and growth strategy.
Slide 43
43 Linda Mayer, Senior Director Linda Mayer is a Senior
Director in the FTI Consulting Corporate Communications practice
and is based in New York. She leverages her expertise in
communications, public affairs and reputation management on behalf
of Health Care & Life Sciences clients. For more than two
decades, Linda has provided counsel and successfully executed
internal and external communications on behalf of Fortune 500
companies with brands that are household names. Linda has held
senior communications positions at some of the worlds leading
global health care and consumer packaged goods companies such as
Merck, Pfizer/Wyeth, Cadbury and Johnson & Johnson. Her
experience includes corporate branding, employee engagement, media
relations, product communications, reputation management,
crisis/issues management, executive positioning, corporate social
responsibility and advocacy. Linda joined from Merck, where she was
a senior consultant to the Global Human Health team supporting
corporate, executive, employee and product communications.
Slide 44
44 Anshula Ahluwalia, Director Anshula Ahluwalia is a Director
in the Chicago office of FTI Consulting. She is responsible for
strategic planning and timely execution of communications programs,
including corporate reputation management, thought leadership,
media relations and training, executive visibility and crisis
communications for clients such as American Society of
Anesthesiologists, OfficeMax, Career Education Corporation and
Insurance Auto Auctions, and serves as a point of contact for
client communications. Prior to this, she has held several
positions with Ogilvy Public Relations in Chicago where she managed
corporate reputation (internal and external) and thought leadership
campaigns for CDW Corporation, a leading provider of technology
products and services, COUNTRY Financial, a provider of insurance
and financial services, McDonalds Corporation, Grant Thornton and
Hudson Highland Group. Anshula supported McDonalds in a change
management and employee communications campaign for a cost
management initiative, designed to help the company save $20
million over a period of three years. She developed strategic
positioning communications, including business case and messaging,
that helped sell-in the value and benefits of the program to
executive leadership, as well as supported development and
execution of franchisee and employee communications strategy to
inform and align the groups in support of the initiative
Slide 45
45 Sacha Mohabeer, Senior Consultant Sacha joined FTI
Consulting Strategic Communications in 2008 and has had roles in
Social Media engagement and implementation, as well as Online
Engagement and Planning, and Client Services, working with clients
such as Forex.com, Wyndham Worldwide, and Duane Reade. She was a
part of a team that managed Diageo's successful public affairs
campaign, AxeTaxesNotJobs.com, a campaign to stop tax hikes on
alcohol. Sacha has also worked with The Coca Cola Company in
developing their internal social media guidelines and certification
program for employees. Her expertise is in developing, managing and
implementing online creative strategy and social media initiatives
across each of the sectors. Sacha is also well-versed in social
media strategy and platforms in regions across the world, having
spent time working with clients and also providing Social Media
training for consultants in our FTI SC Brussels, London and Bogot
offices.