Unlocking the real value of marketing

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business.

We should therefore consider marketing performance, including marketing ROI, more thoughtfully—the metrics that are most sensible to measure performance, the appropriate ways to optimise the outcomes, and how to articulate the results as part of business reporting to boardrooms and investors.

The case of Cadbury Schweppes

Cadbury Schweppes sets a clear framework of strategic intent, and how it will conduct business. Its purpose is ‘working together to create brands people love’, while its objective is ‘to consistently deliver superior shareowner returns’.

While this goal is quite single-minded, it recognises that it cannot be achieved in isolation—that the business also has obligations to consumers and customers, employees and society, communities and the environment. Indeed, the statements seek to capture the heritage and future of the business.

Two men, quite separately, provide the roots to the confectionery and drinks giant. In 1783, Swiss inventor Jacob Schweppe perfected a process for carbonating mineral water that was sourced from near his Geneva home. In 1824 John Cadbury opened a shop in Birmingham, England, selling cocoa and chocolate. The great names merged in 1969, and the business has grown ever since.

Acquisitions have been key to the growth over the last two decades—bringing together over 50 iconic brands. The more recent purchase of Adams—bringing its large portfolio of US-based brands—makes Cadbury Schweppes the leader in the confectionery world, and the third largest soft drinks company.

In 1997, ‘Managing for Value’ was introduced by CEO John Sutherland, to focus the entire organisation on the delivery of ‘superior shareowner returns’. A far more rigorous approach to portfolio analysis, focusing on the markets and brands that delivered the best future cash flows, this also required a significant education process so that every person in the business understands the drivers of success.

In 2003, a new set of goals and performance measures were added, recognising that acquisition is only a stepping stone to success and that the real challenge was now to grow this consolidated portfolio of brands more profitably and sustainably. This also recognised the importance of people and capabilities, not only to deliver what they currently do, but also the need to grow the strategic and innovative capabilities.