Coke names Chuck Fruit its new chief marketing officer; replaces Dan Palumbo who will leave company. Fruit joined company in 1991 from Anheuser Busch and most recently has been Coke's senior vp integrated marketing. Palumbo joined Coke a year ago; his departure has been rumored for months. Coke CMOs. Since 1998, Coke has had five CMOs: Sergio Zyman who left in 1998; Charlie Frenette 1998-2000; Steve Jones, 2000-2003; Palumbo 2003-2004; and now Fruit. Plus. Fruit is widely liked and admired. Before Palumbo's appointment in mid-2003 -- after departure of Jones -- Fruit took on role of acting CMO.
Find new ways. In internal company memo, chairman/CEO Neville Isdell cites changing marketing/media landscape and notes: "We need to find new, innovative ways of addressing our consumers and ensuring the relevance of our brands." Adds: "In the last 50 years, the 30-second television spot has defined our brands and, while it is still important, I think its impact has diminished." Declares Fruit's "experience and expertise fit very well within this new environment." Isdell says Fruit will be "continuing the fine work begun by" Heyer. Reporting line. Fruit initially reports to Heyer and then to Isdell when Heyer leaves company.
Fruit. BD talks to multiple current/former Coke system executives about Fruit. What emerges is picture of executive who is held in high regard. Executives: 1) "Nearly everyone likes and admires Chuck. People like working with him and for him." 2) "He is respected and has a sense of balance. He is well connected in the media and advertising worlds." Stabilize. When Heyer's departure was announced, there was concern in some quarters that some of the marketing/advertising talent recruited/ developed by Coke in recent years might leave. But several executives predict Fruit's appointment will help avert that. TiVo, etc. Beyond duties at Coke, Fruit is on boards of TiVo, Advertising Council and College Sports Television.
Palumbo. In early 2003, Coke conducted search for new CMO. Palumbo was named just over a year ago. He had been senior vp consumer imaging at Eastman Kodak. However, his tenure at Coke was not a happy one. He had little visibility outside company. According to several sources, certain Coke executives and he did not mix well. In memo, Isdell thanks Palumbo "for his contributions" and notes: "We wish Dan the best in his future endeavors."
Interview. BD asks Fruit: Strengths you bring to job? Fruit: "A deep understanding of the marketing talents throughout our system. A belief in the brand and business strategies that we are in the processing of implementing. A unique appreciation for the changing media landscapes and consumer landscapes that our brands will be marketed in."
In what kind of shape is Coke marketing today? Any changes necessary? "My headline would be no left turns, no right turns, we're headed in the right direction. Number two, we've begun to harness the power of our marketing talent around the world. We are getting clearer than ever as to our brand and business strategies that will allow us to have sustainable growth." Thoughts on 'Real' campaign for Coke? "One of my initial top-10 priorities is going to be a fact-based examination of how that's performing. But, from my vantage point, I'm very positive on it."
Your relationship with Neville Isdell? "I joined Coke 13 years ago, so Neville has about a 20 year head-start on me. But from virtually the day I started, Neville and I have interacted and worked together. So, I think he knows me pretty well, and I've had the pleasure of working with him, both (at company) and when he was leading (bottlers Coca-Cola Beverages and Coke Hellenic)."
Evaluation of marketing team at Coke today? "Worldwide, I think we've got enormous talent. One of the huge opportunities is just to reconnect as a marketing community, to share ideas and to innovate together. If I had to list one of my top-three priorities, getting new marketing talent would not be one of them."
Thoughts on future of marketing/media? "Today's consumer is no longer captive. For brands to have meaningful relationships with consumers, first, we have to be more entertaining and engaging and not assume that they're waiting for us to come to them. Number two, traditional advertising -- the 30-second commercial -- will be a lot less effective. Having said that, it's still going to be, for the foreseeable future, the most potent form of brand communication for brands like ours, but we need to have a much more diverse and broader marketing communications mix, if we're going to be successful."
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