Boxoffice (Oct-Dec 1963)

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Pepsi -Cola Co. President Announces New Global Marketing Program Donald M. Kendall, recently elected president and chief executive officer of Pepsi-Cola Co., has announced that under the company’s new marketing program the separation of effort into domestic and international activities would be discontinued and that henceforth all strategic planning would be global in character, with operational authority “local” by broad areas of similarity. NOW A GLOBAL BUSINESS “Selling Pepsi in 104 countries,” Kendall said, “is global business and must be treated as global by modern-minded business management with modern methods. A world enterprise requires modifications in many techniques of management heretofore generally accepted and employed in our business and in other businesses in the United States. The old duplications of separate organizations for domestic and international are no longer efficient or desirable. The product is the same around the world; only the marketing conditions and needs differ.” Under the new system the world as a whole will be divided into areas whose managers will have wide authority for execution of plans formulated by a central staff, and each area will operate as a “profit center” responsible for its own growth. Kendall described a “one-world” management concept under study for the past year, in which all functions and personnel concerned with the marketing and sale of Pepsi anywhere in the world are unified under one central marketing staff. A MASTER CORPORATE PLAN “The future of our business in a complex of cultures and developments,” he said, “is best served by centralizing responsibility for strategic planning and control, and decentralizing responsibility for area planning and the operational execution of these strategies. The process of decision-making which leads to these strategies will begin with research and at division level, the master corporate plan evolving from the adjusted realisms of area plans, and coordination and control being retained at corporate headquarters.” Kendall emphasized that functional authority at area level will be very broad to meet the variations in area needs. “There is no suit to fit all men,” he said. “The programs Pepsi needs in Italy may be very different from those needed in the Philippines, and those in New England very different from our needs in Texas. Placing authority at area levels also assigns responsibility there for judicious investment to serve the most responsive need. A manager in the field must have freedom to operate all activities within his assigned responsibility under a practical span of control.” Peter K. Warren will be in charge of marketing for the entire world under the new plan. Warren, recently named president of Pepsi-Cola International, retains that title also. a :a BALANCE BUTTERCUP — leakproof . . . waxfree with Vita-Glaze* — the Name Brand your customers ask for. BUTTERCUP — in 3 sizes, custom created to increase your butter popcorn sales. BUTTERCUP — imitated but never duplicated — the original buttered popcorn container . . . write for NEW BUTTERCUP brochure. *Vita-Glaze — new paper coating developed for exclusive use on BUTTERCUP "■% SUPURDISPLAY, Inc. SERVER SALES, Inc. 1109 N. 108th St., Milwaukee 13, Wis. ALL 1 1 SIZES PERFECT PROFIT BOXOFFICE :: November 4, 1963