How Small Businesses Can Operationalize AI in Marketing by 2030

Why Small Businesses Should Consider the Co-Sourcing Trend Like PepsiCo

Update Embracing Co-Sourcing: A New Marketing Paradigm The marketing domain has seen significant transformations recently as brands strive to remain agile and responsive in the fast-paced digital landscape. One of the most noteworthy trends is PepsiCo's innovative move toward ‘co-sourcing’ rather than simply choosing between outsourcing and in-housing. Partnering with VaynerMedia, PepsiCo is using this co-sourcing approach to enhance content production and strengthen their connection with consumers. Why Co-Sourcing Is Gaining Popularity Among Brands The crux of co-sourcing relies on collaboration, where PepsiCo and VaynerMedia merge their resources and expertise to create content that resonates with audiences on social media platforms like TikTok. This partnership enables faster production rates and leverages Coca-Cola’s extensive knowledge of market trends and customer preferences. This model alleviates the bottlenecks that can occur in traditional in-house marketing configurations, allowing brands to produce relevant content at unprecedented speeds. Lessons from the Past: The Evolution of Marketing Approaches Historically, big brands oscillated between in-house capabilities and outsourcing, usually influenced by campaign size, budget, and the urgency of the marketing push. For example, companies like Keurig Dr Pepper let go of their internal creative agency in favor of partnered solutions, whereas PepsiCo is heading in a different direction. By examining the performance of past campaigns, it’s clear that integrating skilled external resources can yield improved engagement, especially when leveraging insights from platforms built on user-generated content. Natural Synergy: PepsiCo and VaynerMedia’s Long-standing Relationship PepsiCo's partnership with VaynerMedia is not a sudden shift; it is rooted in more than a decade of collaboration. This historical context underscores the synergy between the two entities, allowing them to deploy rapid marketing tactics effectively. VaynerMedia's unique understanding of social media dynamics complements PepsiCo’s established brand identity, equipping them to devise campaigns that not only promote products but also resonate culturally. The Role of Insights in Modern Marketing Mark Kirkham, PepsiCo’s new CMO, acknowledges the importance of aligning with experts who understand platform algorithms and user behaviors. The crucial insight here is that merely increasing content volume is not enough; marketing teams must create engaging content that aligns with current trends while being quick to adapt and pivot based on feedback. VaynerMedia’s focus on producing timely, relevant content positions PepsiCo to connect authentically with audiences. Growth from Innovation: Quantifying Co-Sourcing Success Since implementing this co-sourcing strategy, PepsiCo has seen remarkable growth metrics, including tripled content production and a 50-70% boost in engagement per brand. This success speaks volumes about the efficacy of their partnership model. One standout example is Mug Root Beer, which experienced significant growth due to carefully curated social media activations tailored to its unique audience. These results demonstrate the tangible benefits of a collaborative marketing approach. Future Trends: Anticipating Changes in Consumer Behavior Looking ahead, the marketing landscape will likely continue to evolve as consumer preferences shift. With newer generations demanding more personalized and authentic interactions, the integration of creative agencies like VaynerMedia within established brands will become more common. It opens doors for brands to adapt quickly to trends, utilizing agile strategies that resonate on social platforms. Conclusion: Taking Action in Your Small Business The co-sourcing approach that PepsiCo and VaynerMedia have implemented provides critical insights for small businesses seeking to enhance their own marketing strategies. By leveraging external expertise while retaining internal brand knowledge, small companies can foster agility and creativity in their campaigns. In the fast-moving world of marketing, companies should consider how an integrated approach may benefit their growth and relevance in an increasingly digital world.