Coca-Cola Brings Back Role Of Chief Marketing Officer -- WSJ
December 17 2019 - 3:02AM
Dow Jones News
By Nat Ives
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (December 17, 2019).
Two years after eliminating the role of chief marketing officer
in favor of a more powerful chief growth officer, Coca-Cola Co. is
resurrecting the CMO post.
Francisco Crespo, who has overseen marketing and other duties as
Coca-Cola's first chief growth officer since 2017, will retire in
2020, the company said. Manolo Arroyo, the president of the
company's Asia Pacific Group, was named to take on the marketing
portion of Mr. Crespo's responsibilities under the resurrected
title of CMO.
Although most big companies employ CMOs, the title has become
less popular in the past few years as marketing increasingly
overlaps with other business drivers like innovation, analytics and
strategy. CMO titles have been eliminated or gone unfilled this
year at brands including Uber Technologies Inc., Johnson &
Johnson and Beam Suntory Inc.
About 70% of large companies have CMOs at the corporate level,
down from roughly 74% in 2009, according to estimates by leadership
advisory firm Spencer Stuart.
When Coca-Cola named Mr. Crespo as chief growth officer and cut
the CMO role, Chief Executive Officer James Quincey explained that
marketing was becoming less neatly separated from other key
activities.
"There's a much greater intersection and integration of how to
engage with consumers and shoppers," Mr. Quincey said on an
earnings call then. "And therefore, bringing together in one group
the classical marketing pieces with a customer piece with a
commercial piece and with the strategy, underpinned with the
digital engagement, is what's going to allow us to more seamlessly
operate in this new environment."
Coca-Cola declined to make executives available on Monday to
discuss the reversal, but pointed to a staff memo by Mr. Quincey
about the changes.
Though Mr. Crespo built a strong framework for growth around the
company, the company needs more emphasis on marketing to accelerate
its vision, Mr. Quincey said in the memo.
"That's kind of the trap of some of these proxy roles
sometimes," said Keith Johnston, vice president and research
director at Forrester Research Inc., which recently predicted that
CMO titles would continue to wane. "If you've aligned budgets and
decisions, you're in a pretty good place, but you can't have
someone who doesn't really understand marketing. You have to
emphasize the customer relationship because that's how brands are
built now, but you can't dismiss the fact that brand plays a
role."
Mr. Arroyo has more marketing experience than Mr. Crespo did
when he became chief growth officer. Mr. Arroyo also will continue
in his role as president of the Asia Pacific Group.
"If the argument is you want them to focus more on marketing,
I'm not sure that giving them a business unit in addition to
marketing is going to help them focus," said Kim Whitler, assistant
professor at the University of Virginia Darden School of Business
and a former CMO of David's Bridal Inc.
The job titles that companies use don't always completely
correspond to responsibilities, and can fluctuate over time without
revealing much about larger industry trends, Ms. Whitler added.
"There are no rules about what sets of responsibilities go with
what title," she said.
Even Coca-Cola's chief growth officer didn't oversee innovation,
an important component of growth, Ms. Whitler said.
A Coca-Cola spokesman said the company considers both growth and
innovation to be high priorities, noting that both the chief growth
officer and chief innovation officer report to Mr. Quincey.
Coca-Cola's sales rose in the third quarter, largely due to
variations on its namesake cola such as Coke Zero Sugar. The
company is also introducing a coffee-flavored version of Coke, an
energy drink called Coca-Cola Energy and a new seltzer brand with
caffeinated options.
Write to Nat Ives at nat.ives@wsj.com
(END) Dow Jones Newswires
December 17, 2019 02:47 ET (07:47 GMT)
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