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Thursday, 26 November 2009 23:03 UAE time

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The modest maestro

by ArabianBusiness.com staff writer  on Monday, 23 June 2008
KABIL: “We have big plans to launch more brands offering healthier options for consumers very soon.”

The objective of the massive GCC marketing campaign launched recently was to reinvigorate the Pepsi brand image by building on its strong relationship with young people forming the core of its consumer base in the region.

"The redesign programme is worldwide, but its execution varies between markets. The packaging change came about in the UAE and North Africa, with themes such as the Internet and sports, but we will keep changing them as this more of a dynamic and evolving strategy than a static one.

"We want to know who our target consumers are; what do they watch on TV?"

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During his time at the helm, Kabil has transformed the business into "a strong market leader," by researching the needs of consumers and the trade. "The first thing I do when I visit a market is talk to the trade to see how we are serving them. We distribute coolers free of charge and ensure our products appear correctly."

Kabil has his work cut out as the driving force behind his 12,000-strong team, "a figure that could be multiplied by ten to include the distribution channel," and "facilities everywhere; the UAE, Bahrain, Kuwait, Saudi Arabia, Egypt, Libya and Algeria."

In 2007, PepsiCo recorded annual revenues of more than $39 billion in 200 countries, across which it employs 185,000 people.

PepsiCo's commitment to sustainable growth, defined as Performance with Purpose, is focused on generating healthy financial returns while giving back to communities.

This includes meeting consumer needs for a spectrum of convenient foods and beverages, reducing the company's impact on the environment through water, energy and packaging initiatives, and supporting its employees through a diverse and inclusive culture that recruits and retains world-class talent.

Tropicana is central to Kabil's Middle East strategy, after the opening of a production plant in Saudi Arabia. The Pure Premium juices brand, synonymous with the finest fruits and original products worldwide, is positioned as the company's response to consumers' willingness to pay more for quality. "We are looking at how we can provide the right product at the right price."

Modern trade is "still growing, but it is a much smaller part of our business," according to Kabil. "Organised trade accounts for higher sales in the UAE and Saudi Arabia than Egypt or Oman, for example, but traditional trade is still stronger."

Kabil has coped with the wide-ranging demographics and levels of industry development across the region, and he believes "the future is very positive; GDP growth in the Middle East is one of the highest in the world. To deal with high commodity costs, we will improve our productivity and evaluate the categories," he says.

"We have been growing in strong double-digits in recent years in snacks and beverages. Pricing is very competitive, and more consumers are moving towards our products."

The Max exposure guide

PepsiCo International has used novel methods to ramp up brand awareness for its flagship beverage this year. The company distributed 400,000 free cans of Pepsi Max, as part of its month-long MAX Your Life campaign in the GCC.

The initiative targets locations attracting young people, including universities, billiard halls, Internet cafes and areas outside shopping malls. The drive was connected to its ‘Things To Do Before 30' TV commercials, which embrace concepts including Be The Boss, Become Famous and Drive A Sports Car.

The recent redesign of its labelling on bottles, cans and cups react to trends including SMS and downloads, inspired by its teenage consumers. The new look maintains the recognisable blue, red and white colours, with in-store promotions supported by a massive TV and outdoor advertising campaign.


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