Pepsico’s Meghan Archer on How Curiosity and Innovation Fuel Success

Summary

Podcast Summary: BRAVE COMMERCE – Pepsico’s Meghan Archer on How Curiosity and Innovation Fuel Success

Episode Title: Pepsico’s Meghan Archer on How Curiosity and Innovation Fuel Success
Release Date: November 12, 2024
Hosts: Rachel Tipograph (Founder & CEO of MikMak) and Sarah Hofstetter (President of Profitero)
Guest: Megan Archer, Vice President of Digital Commerce Sales at PepsiCo

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Introduction

In this episode of Brave Commerce, hosts Rachel Tipograph and Sarah Hofstetter engage in a profound discussion with Megan Archer from PepsiCo. The conversation delves into how curiosity and innovation are pivotal in driving success within the rapidly evolving eCommerce landscape.

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Megan Archer’s Career Journey and Leadership Philosophy

From Consumer Electronics to Digital Commerce

Megan Archer shares her extensive career path, highlighting her diverse roles across retail and technology sectors. Starting in consumer electronics and moving to major companies like AT&T Mobile and Amazon, Megan emphasizes her intentional pursuit of diverse experiences to broaden her business acumen and leadership capabilities.

Megan Archer [06:49]:
"Overall I'd say definitely enriched and grew my business acumen and also just my leadership style and ability to make well-informed decisions."

Transition to PepsiCo

Megan discusses her transition to PepsiCo, underscoring her passion for tackling the complexities of the grocery business through digital transformation. She views PepsiCo as the perfect platform to lead omnichannel transformation, leveraging her background to drive innovation in a century-old company embracing modern digital trends.

Megan Archer [06:49]:
"Coming to Pepsi to lead this omnichannel transformation which is yet kind of more of the newness here in this decade... it's very exciting."

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Fostering Curiosity and Innovation in Leadership

The Role of Curiosity

Megan attributes her success to an innate curiosity that fuels her desire to understand the "why" and "how" behind business processes. This curiosity drives her to connect the dots and envision what could be possible, fostering a culture of innovation within her teams.

Megan Archer [10:02]:
"The curiosity, I'd say pushes me to see what could be and kind of like connecting the dots and then also tapping into highly talented people..."

Empowering Teams through Transparency and Collaboration

Megan emphasizes the importance of transparency and collaboration in leading large organizations through digital transformation. By being open about venturing into uncharted territories and encouraging a test-and-learn approach, she empowers her team to innovate and adapt swiftly.

Megan Archer [10:02]:
"I'm pretty also very transparent on sometimes, you know, going to uncharted territories and let's figure it out, let's test and learn."

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Talent Strategy in the Digital Age

Hiring for Versatility and Communication

Discussing talent acquisition, Megan highlights the necessity of hiring versatile individuals who possess both strong digital business acumen and exceptional communication skills. She underscores the importance of bridging the gap between in-store operations and the digital realm, ensuring seamless omnichannel experiences.

Megan Archer [13:47]:
"Strong communication... is so critical as well."

Embracing Diverse Skill Sets

Megan stresses the importance of having a diverse team capable of wearing multiple hats. This diversity enables the team to navigate the complexities of digital commerce while maintaining the strengths of traditional operations.

Megan Archer [13:47]:
"Hiring for versatility... sales folks call on my team, they're a bit of a generalist as well."

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PepsiCo’s Omnichannel Strategy and Differentiation

Investing in Talent and Technology

PepsiCo differentiates itself in the omnichannel space by heavily investing in both talent and technology. Megan attributes their success to a dedicated focus on digital transformation even before the COVID-19 pandemic, allowing them to adapt swiftly and effectively during unprecedented times.

Megan Archer [16:43]:
"At Pepsi we're leading in the CPG space by investing in talent and technology."

Leveraging Strong Brand Portfolio

PepsiCo’s extensive and diverse brand portfolio plays a crucial role in their omnichannel strategy. Megan explains how their wide range of beverages and foods enhances their presence in the grocery sector, allowing them to offer comprehensive solutions to customers.

Megan Archer [16:43]:
"The power of our brands is fantastic. We have a wide breadth of brands... that help just overall the total basket on grocery."

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Building Strong Partnerships with Retailers and Last Milers

Co-Creation and Rapid Innovation

Megan emphasizes the importance of co-creating with retailers and embracing rapid innovation to stay ahead. By inventing new ways together and adopting a test-and-learn mentality, PepsiCo fosters strong partnerships that drive mutual growth.

Megan Archer [19:01]:
"Co-creation is a big one and inventing new ways together with our customers to build businesses."

Obsessing Over the Fundamentals

Maintaining a focus on fundamental aspects like inventory management and customer retention is vital. Megan highlights how obsessing over these basics ensures a seamless customer experience, crucial for retention and satisfaction.

Megan Archer [19:01]:
"Obsession over the fundamentals... ensuring that they continue to get their favorites."

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The Bravest Thing: Embracing Change and Personal Growth

Stepping Out of Comfort Zones

When asked about the bravest thing she's ever done, Megan reflects on her decision to leave T-Mobile for Amazon. This move required her to embrace a drastically different and challenging environment, cultivating grit and resilience.

Megan Archer [21:05]:
"I went through a lot and I kept going, that was brave. And I did grow because... it shaped me as the person I am today."

Continuous Learning and Adaptation

Megan credits her ability to teach herself new skills and adapt to evolving roles as key factors in her career growth. Her experience at Amazon, despite its demanding culture, provided her with invaluable lessons that she now brings to her role at PepsiCo.

Megan Archer [21:05]:
"Teaching myself these things, homegrown systems, nearly zero help... it really pushed me outside of my comfort zone."

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Conclusion

In this insightful episode, Brave Commerce uncovers the essence of leadership driven by curiosity and innovation through Megan Archer’s experiences and strategies at PepsiCo. Her emphasis on fostering a culture of continuous learning, investing in versatile talent, and building strong partnerships offers valuable lessons for brands navigating the dynamic eCommerce landscape. Megan’s journey underscores the importance of embracing change, staying curious, and leading with resilience to achieve sustained success.

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Notable Quotes:

• Megan Archer [10:02]:
  "The curiosity pushes me to see what could be and kind of like connecting the dots..."

• Megan Archer [16:43]:
  "At Pepsi we're leading in the CPG space by investing in talent and technology."

• Megan Archer [21:05]:
  "I went through a lot and I kept going, that was brave. And I did grow because... it shaped me as the person I am today."

---

For more episodes and insights into the world of eCommerce, visit MikMak and follow Brave Commerce on your favorite podcast platform.

Transcript

[Ryan Reynolds]

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[Sarah Hofstadter]

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[Boost Mobile Representative]

To make switching to the new Boost Mobile risk free, we're offering a 30 day money back guarantee.

[Megan Archer]

So why wouldn't you switch from Verizon or T Mobile?

[Boost Mobile Representative]

Because you have nothing to lose. Boost Mobile is offering a 30 day money back guarantee.

[Ryan Reynolds]

No, I asked why wouldn't you switch from Verizon or T Mobile?

[Megan Archer]

Wouldn't.

[Boost Mobile Representative]

Because you love wasting money as a way to punish yourself because your mother never showed you enough love as a child.

[Ryan Reynolds]

Whoa, easy there.

[Boost Mobile Representative]

Yeah.

[Ryan Reynolds]

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[Megan Archer]

Omnichannel transformation, digital transformation, massive change management. That doesn't happen overnight. So the curiosity, I'd say pushes me to see what could be and kind of like connecting the dots and then also tapping into highly talented people that can go off the deep end and help form that vision and that aspiration of like what we can change and move mountains together. And that moves me and gives me energy and tell the story of like, this is a journey as well together and you know, we're all holding hands and I have the confidence that we'll get to the other side.

[Sarah Hofstadter]

Welcome to today's episode of Brave Commerce.

[Rachel Tippograph]

I'm Rachel Tippograph, the founder and CEO of Micmac.

[Sarah Hofstadter]

Sarah I'm Sarah Hofstadter, president of Profitero.

[Rachel Tippograph]

And this is a show that talks about what's relevant in E commerce for the world's biggest brands. Sarah I had an interesting meeting happen last week.

[Sarah Hofstadter]

Say more.

[Rachel Tippograph]

I met with the CMO of a really large brand that we work with and it was the first time we were meeting. She's a few months into her new role. I shared with her my strategic perspective on what I believe needs to happen, both for her business as well as our partnership. The person who reports into her was in the meeting because I didn't want him to feel like I was overstepping. My boundaries. And he's been our day to day sort of leading point of contact. And I don't think he really appreciated that I was providing my strategic perspective that might be different than his.

[Sarah Hofstadter]

Was there backlash afterwards or how was it received in the room?

[Rachel Tippograph]

In the room it was quite cordial. And then after the meeting, that's where I felt like the undertone was different. And I just held my stance and I said, I'm here to provide you my strategic perspective. There's one thing that I have deep expertise in, and you can take it or leave it, but I feel by not doing it, I would be giving you and your organization a disservice. It's interesting. Sometimes it's not welcomed.

[Sarah Hofstadter]

Trusted advisorship can only work when there's a willingness to be vulnerable on both sides. You took a big vulnerable step by sharing your thoughts on what it means to be a good partner. And it might have been that the senior person that you were talking to actually would appreciate it. And that might be why they're in a more senior position. Because usually leaders are willing, good leaders are willing to be vulnerable. Part of it is, can you have a conversation at a level where you actually feel like you're intellectually sparring, where you feel like you've got that intellectual parody with the person that you're speaking with. So it might have been that with the CMO you were totally vibing. And with that next level, you might have created a degree of insecurity. I don't know. I'm not going to go have them sit on the couch and we're going to go have a session on therapy. But to me, it's like I do find that sometimes I struggle with that, both with clients as well as with employees. It's like that line from A Few Good Men. You can't handle the truth. But you get to a much better place when obviously you take emotion out of the situation and you're able to have that back and forth that gets you to a better place. And when you're collaborating and creating together and you feel like you're part of the action, that theoretically should be helpful. So if you're working with that cmo, trying to help them make them and their business better, with or without you, I don't know that it looks like you're overstepping bounds. I see it as you're being what is actually called a partner versus sometimes we get that terrible V word of bender. So that plays a really big role. And I think it speaks to how different brands and the people that lead those brands rely on others, whether outside their organization or inside their organization, to help improve their craft and improve their results. Right. You know whose speed dial you're on?

[Rachel Tippograph]

100%. Well, it seems like you have this relationship of intellectual sparring with your friends at PepsiCo.

[Sarah Hofstadter]

I mean, Megan Archer, I think, is one of those people who I met via Walmart. So there you go, double partner. I met Megan via the nice folks at Walmart at a dinner over a year ago. And the conversations continue with that intellectual sparring where we're trying to figure out how, how do we make each other better. But I see the way she does it within her own organization, and I think that that's a true testament to somebody who is always willing to be curious. And her career path also speaks to that. She spent time at Amazon. She spent time working in mobile, telecom. Like, she continually challenges herself as much as she challenges others. And I think that's where you end up getting people that are both vulnerable and curious and ultimately do the best work.

[Rachel Tippograph]

Well, let's bring Megan onto the show.

[Sarah Hofstadter]

I don't know if you can get much bigger than PepsiCo. Today we have Megan Archer, PepsiCo's vice president of Digital Commerce sales. Megan, we are so thrilled that you've joined us today. Thanks.

[Megan Archer]

Thank you. Yeah, just excited to be here with you today.

[Sarah Hofstadter]

Oh, there's a lot to unpack here, so let's just get into it. Well, let's first talk about you. People think you're a digital native because you're in digital commerce. Actually, you started out in consumer electronics, moved to Amazon in a variety of roles, starting and buying. But you seem to be loving digital commerce, specifically in the food space. How do these dots connect? Because you look at everybody's career as a narrative. Help us understand yours. How did you end up here?

[Megan Archer]

Yeah, absolutely. You know, my entire career I've been in retail or embedded in technology to some degree. Been on the supplier side, been on the retailer side across all those channels. I'd started in consumer electronics, AT T Mobile, growing key customer accounts with that wireless business. It was very heavy brick and mortar and field execution. It was back in the time where we're launching the first Android phone or selling the value of why you would want an application on your phone and how that adds to your life. But from there I really wanted to move to, I'm going to say a tech company that built tech products and software and so on. And so from there I went to Amazon and also wanted to learn just the digital Business and at the time I went to Amazon to build their wireless cell phone business so, so very applicable there. And I came in over as a, as a lead merchant and these are the early days where there was two sites and two different apps and maybe you remember that the launch of the first Fire phone Jeff Bezos project for sure. So it's during that time fast paced growth and over the course of 10 years I intentionally sought out diverse roles to broaden my aperture. I worked in a variety of different businesses and functions from there DMM to office supplies, went to gm Amazon Fresh where I led supply chain marketing, buying and product tech. I was very embedded in the Whole Foods Market acquisition and I say like the last role that I had at Amazon was in product development for Amazon's private brands. You know, sourcing. There's a team in Shenzhen building a global brand for Amazon. Overall I'd say definitely enriched and grew my, my business acumen and also just my leadership style and ability to make well informed decisions. See bigger picture holistically to the point of like hey, I'm joining PepsiCo. PepsiCo. It was really helped. It was like this perfect marriage and it was my desire to work for emerging trends and transformation and in grocery believe that grocery is one of the most complex and difficult businesses. I'd say, you know, it's still being pseudo figured out in the digital world and we have so much more to do. So coming to Pepsi to lead this omnichannel transformation which is yet kind of more of the new, the newness here in this decade. We have much more digital penetration to be had in grocery on top of working for you know, a company, 100 year old company with global leading brands, you know, how exciting is that? And that's why I came here and also continued on that food journey.

[Rachel Tippograph]

So with so much experience in terms of breadth and depth, it feels like one of the connective tissues throughout everything is that you're clearly just a curious person that wants to keep learning and growing. That feels like something that can't be taught though. I'd love to understand if you feel curiosity can be taught versus something that's innate. But as a leader, how do you empower others to become curious so they can be a part of the change that you're helping a large organization like PepsiCo go through.

[Megan Archer]

Yeah, I agree. I think it's a tougher thing to teach for me personally, I just have always had that drive to continuously push myself and I think it comes from part, you know, naturally of always wanting to understand the why the how I'm always listening, asking questions, reading, you know, just being the sponge and also just questioning the status quo and being comfortable with ambiguity. It's natural for me. So for folks on let's say like PepsiCo today, omnichannel transformation, digital transformation, massive change management, that doesn't happen overnight. So the curiosity, I'd say pushes me to see what could be and kind of like connecting the dots and then also tapping into highly talented people that can go off the deep end and help form that vision and that aspiration of like what we can change and move mountains together. And that moves me and gives me energy and tell the story of like this is a journey as well together. And you know, we're all holding hands and I have the confidence that we'll get to the other side. Just bringing the team along on the journey and that's how I would say, you know, motivating. I'm pretty also very transparent on sometimes, you know, going to uncharted territories and let's figure it out, let's test and learn. We always can go back and pivot. So it's worked well. I'm just going to say I have a fantastic team, highly talented. That also helps in large degree.

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[Megan Archer]

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[Rachel Tippograph]

Sold.

[Ryan Reynolds]

Give it a [e-mail] Switch $45 upfront.

[Sarah Hofstadter]

Payment equivalent to $15 per month. New customers on first three month plan only taxes and fees. Extra speed slower above 40 gigabytes. So let's pivot into talent strategy because the mindset of how to curate great talent at a company like Amazon is very different at PepsiCo companies 100 years old versus 25. Obviously very different than the day one strategy. You have a very much a day one mentality. So as you think about hiring cross skilling, what do you think it takes both in terms of hard skills and soft skills to win in the word? You and I have talked about omnification.

[Megan Archer]

Yes.

[Sarah Hofstadter]

How do you find the right talent, hard skills, soft skills for this world in a company that is such a.

[Megan Archer]

Machine really it is, yes. Very well oiled machine. And yeah the omnification, it's a journey and it takes time but it's highly critical. And so for talent there's like a few things that I take into account. A digital business acumen or understanding the complexity of the work and of the implications as I say that digital doesn't just happen. So I think there's an importance to have an understanding there. It doesn't necessarily mean you need to know everything there for sure open to that call it understanding. Because you're building and operating the digital business at the same time you're bringing this omni experience together. Strong communication. So Sarah, again the soft skills so vital just like underscore this. This was even probably just a, even a more of a learning for me coming over to the company of you know, bringing people together on all different levels and functions and so on to build that bridge of these call I'm going to say these two worlds and drawing parallels of in store strengths to this digital world. And everyone has a part to play in this. Much of our growth too is coming from in store today and ensuring that it's like it's together. It's not in lieu of and skill set of I'm going to say so you know, we're tenured PepsiCo people. It's so critical to have them as part of the team too because they're going to know the operations very intimately. A lot more so than, than somebody that's been I'm going to say for four years. I know, I know some but I definitely know there's people that know a lot more thinking big and just like creative solutions. So I think it's that status quo piece of like okay can we push the envelope on operations for in particular an example is like I'm Challenging my team of the creative ways to build that virtual store capacity. And you know what does that mean? And sometimes that means it's a different go to market strategy and it is not always in lieu of. It's also a compliment to the existing because there's just so many ways that products can be fulfilled when you're buying digital, you know many different ways and they're still being invented hiring for versatility. So I think just that dynamic of having a diverse group and then also folks individually have to wear different hats. So sales folks call on my team, they're a bit of a generalist as well. They need to understand a business functions. They're very interconnected and you know it's not a call it that traditional sales anymore because part of it also is this transformation and these bridging call it these two worlds that are both very vital and important to go forward.

[Rachel Tippograph]

As PepsiCo continues to go on this on channel journey, so do your competitors. Right. Like we're all operating in the same world together. How does PepsiCo differentiate itself when it comes to its omnichannel strategy?

[Megan Archer]

Yeah, gosh, at Pepsi were leading in the CPG space by investing in talent and technology. You know we had this dedicated focus to look ahead and to focus on digital digital transformation before COVID and so when Covid did come around too we were even, even that much more ready and soaring at a faster clip. Also that adds a lot of value and engagement with customers as they're going through that as well. We have the strengths in brick and mortar and really drawing I'm going to say those parallels to how do we bring our brands to life online. And the power of our brands is fantastic. We have a wide breadth of brands, beverages, foods and world renowned brands that help just overall the total basket on grocery and differentiating ourself which is our brand portfolio. And I'd also say just on the tech side strategically we look at you know, where to build our own tech stack say where it makes sense. We operate with this mentality of end to end and ensuring that we're thinking end to end our strategies end to end that cross functional and everybody it's so important especially with that customer journey and then even with you know our customers too are operating a bit more like that as well that leads to just the stronger partnership. So we're leading in that space as well and we're proud of that. And you know staying very, very connected and breaking down those silos is critical as well.

[Sarah Hofstadter]

That's a great point. And it's not lost on me that you and I met at a Walmart event. So in terms of the importance of partnership with customers and being that category leader in so many different areas becomes so important. So as you think about both your partnerships with your customers as well as how you stay ahead of curve, how do you think about that relationship? Like how should best in class companies be thinking about how to partner best with both retailers and the last milers as well? And what advice might you even have for the customers themselves?

[Megan Archer]

Yeah, gosh, I feel like it definitely comes down to, you know, this talent and technology having the best in class talent. Let's say for example, we'll take national retailers and Rachel, like you said, like they're going through that massive transformation as well and like absolutely, we see that we need to stay ahead. I think there's a constant need to elevate your game to serve customers because they're learning as well. And you know, there's new basing all the time. And so a few things that we focus on co creation is a big one and inventing new ways together with our customers to build businesses a little bit of business development and what could be embracing test and learns, but very fast with speed sometimes you don't want the analysis paralysis and you just got to go and figure it out because I think speed does give you a competitive edge. Operating end to end, which I mentioned earlier. And then also obsessing over the fundamentals. The fundamental inputs in stock is basic, but it's so critical, especially as in the digital world as you're gaining past purchases for customers to ensure that they continue to get their favorites. And it's very easy to shop. And that's also just part of various customers that are doing call it a membership. Right. And they want to ensure that for their retention as well. So it's important collectively. And so we're always obsessing over the fundamentals. And I also operate kind of on this core principle of viewing through the lens of the consumer's journey is key. And you'll always find the answer if you start there. And lastly, maybe underpinned with technology and rapid business intelligence at scale and the continuation of that.

[Rachel Tippograph]

It's interesting, over the years we've had a bunch of different PepsiCo aluminum and even as the marketplace changes, it's so clear that talent is really at the core of everything throughout PepsiCo. And we heard it from you today. So we gotta ask you our famous last question, which is what's the bravest thing you've ever done?

[Megan Archer]

All Right. Okay, Rachel. I was like, gosh, you know, I really appreciate this question as I listened to your podcast and like, here I am now answering this. So it's full circle. You know, I thought a little bit about this, and I decided to call it the career route, but also just embracing also who I am. I'd say there was a time in my career where I was just thriving with new challenges, and I was like, all right, I need a new challenge. And I also need to diversify myself to just embrace the future of the world. And that's really when the time I left T Mobile and I went to Amazon to learn call it tech. And it really pushed me outside of my comfort zone because I had very little experience there at the time. There was some crazy warnings, I'm going to say, about the culture now. Clearly, I was there for 10 years, so I had an awesome experience. But there was times where you kind of hear these stories of turnover and so on, and. And what it was was there's constantly growing company. I mean, during the time I was there, it grew 10x. And so it's an environment where some people, maybe it's not for them, and some people it is, but you're always working with somebody new. More often you go to meetings and you don't know anyone. Maybe a few people of your core group. But it's very, very common throughout my whole time there. The other part was, you know, there was no training, and it's like, all right, well, if you're going to get reporting, you just got to go ahead and learn SQL. I was like, all right, so, you know, teaching myself these things, homegrown systems, nearly zero help. But that's the culture and everybody's in it. And so I'd say grit, resilience, very important, having a backbone. And, you know, I didn't really think of it as, call it brave at the time, but as I look back and thinking of, gosh, I went through, through a lot and I kept going, that was brave. And I did grow because, you know, being in that environment and it's absolutely shaped me as the person I am today. And I'm very thankful for the experience. To be able to, you know, move to Pepsi and bring that with me and then also gain a great, fantastic value from just being at Pepsi alone.

[Sarah Hofstadter]

Now you know why we asked you on the show.

[Megan Archer]

I appreciate it, Sarah. Thank you.

[Sarah Hofstadter]

Well, thank you so much for joining us, for dropping so much knowledge. There's so much that PepsiCo is doing, and we can't wait to see not just what PepsiCo keeps doing in the digital commerce space, but what you do, Megan. So thank you very much for joining us.

[Megan Archer]

Thank you. Bye bye.

[Rachel Tippograph]

If you like what you heard, you know we have a big theme on this show and that is PepsiCo alums. A lot of great executives have come from Pepsi. Most recently we recorded an episode with Denone's Linda Bethia, who's the cmo. She also worked at Pepsi. So go check her out. Or go way back in the way back archives of Brave Commerce. And check out an episode we did with Lauren Hobart, who's now the CEO of Dick's Sporting Goods and spent many years at PepsiCo. If you like what you heard, tell a friend. Write a review.

[Megan Archer]

Thanks for listening.

[Boost Mobile Representative]

To make switching to the new Boost Mobile risk free. We're offering a 30 day money back guarantee.

[Megan Archer]

So why wouldn't you switch from Verizon or T Mobile?

[Boost Mobile Representative]

Because you have nothing to lose. Boost Mobile is offering a 30 day money back guarantee.

[Ryan Reynolds]

No, I asked why wouldn't you switch from Verizon or T Mobile?

[Boost Mobile Representative]

Wouldn't because you love wasting money as a way to punish yourself because your mother never showed you enough love as a child.

[Ryan Reynolds]

Whoa, easy there.

[Boost Mobile Representative]

Yeah.

[Ryan Reynolds]

Applies to online activations, requires port in and autopay. Customers activating in stores may be charged non refundable activation fees.

[Jackie Cooper]

Hi, I'm Jackie Cooper, Global Chief Brand Officer at Edelman and the host of Touch of Truth, a new podcast launching on the Adweek Podcast Network. My dad gave me this incredibly smart piece of advice. Meet everyone once. As a result, I've met some of the most fascinating and inspiring people on the planet. Now on Touch of Truth, we're coming centre stage and sharing the mic to experience stories of truth, insights and visions for the future that will challenge your way of thinking. Touch of Truth is available wherever you listen to podcasts. New episodes come out every Tuesday. I do hope to see you there.