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kdawson
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Re: Pepsico and social media
kdawson   3/19/2012 12:09:18 PM
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Do we need to be marketed to? No. Do Coke & Pepsi need to market? Uh huh.

Speaking of HFCS, Pepsi will be debuting a new drink featuring both HFCS and artificial sweeteners! Oh boy, let me break in line for that!

Tom Murphy
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Re: Pepsico and social media
Tom Murphy   3/19/2012 11:47:00 AM
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Thanks Keith!  Great data!  Imagine if they took that $2.6 billion and spent it on feeding people.  I mean, don't people already know if they want to drink a cola or not?  Do we really need to market food coloring and high-fructose corn syrup to people?  (OK, that was a slightly cheap shot...)

kdawson
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Re: Pepsico and social media
kdawson   3/16/2012 2:28:38 PM
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To a first approximation, the ongoing popularity of colas is a function of marketing budgets. For Coke, the total advertising budget rose from $1 billion in 1993 to $2.6 billion in 2006. (Inflation would have taken $1B to $1.4B over that time, so the spending nearly doubled in real terms.)

Tom Murphy
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Re: Pepsico and social media
Tom Murphy   3/16/2012 1:36:58 PM
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@Keith: I think that's actually the bigger challenge.  Pepsi literally had an ad campaign for "The Pepsi Generation" that was associated with boomers. So what message does it have for Gen X or Gen Y ...or Gen Z? To me, colas seem "old-fashioned," perhaps because I stopped drinking them back in the '90s.  Just lost my taste for them.

But it is amazing to me that generation after generation gets addicted to colas and chips.   I think this alone reflects the agility of the companies that makes them.  Imagine if tech companies could achieve that level of consumer loyalty. We might all be carrying Palms forever.  Or hotels and airlines: they have to offer loyalty programs to keep people interested.  There are a LOT of beverages to choose from...so why soft drinks? 

kdawson
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Blogger
Re: Pepsico and social media
kdawson   3/16/2012 1:17:20 PM
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@Tom, good point. I assume Pepsi knows not to cling too tightly to this customer base (i.e., Boomers). Perhaps that's why they still sell HFCS- and fat-laden products as well, to capture the consumers who still consider themselves immortal.

Tom Murphy
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Blogger
Re: Pepsico and social media
Tom Murphy   3/16/2012 12:25:38 PM
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@Keith:  You're forgetting something....people change. As we age, people think less of the things that seemed so important in their 20s and 30s -- buying a house, starting a family, building their career -- and face a new area of needs in their 40s and 50s -- retirement plans, physical health, spiritual peace of mind.  So the Pepsi generation for 20 years ago that made Dorito's popular is now thinking they need to start eating better and make sure the world they leave behind is a better place. These folks (the boomers) also spend one out of two consumer dollars.  So I think the Pepsi CEO may be shifting away from the company's traditional products, but it clinging tightly to the traditional customer base.

munira
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Agile Expert
Re: Pepsico and social media
munira   3/15/2012 10:51:23 PM
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@TOM & KD

I agree with you..... it also reflects another aspect. The consumer power. Giants like Mc Donald and PepsiCo are forced into alternate opportunities along with appreciateable capacity and vision of both companies to be flexible enough to understand and timely make the shift. Companies who failed to read consumer trend lost the battle in time, there are number of example of once Giants are strugglers now, Kodak, Polaroid, Yahoo etc.

No doubt being agile is biggest asset a company has in todays market. Thats why big companies invest huge chunks of money to study and carry out surveys to monitor consumer trends.

kdawson
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Blogger
Re: Pepsico and social media
kdawson   3/15/2012 4:35:44 PM
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@Hanna, it's possible that a well-established brand like Pepsi or McDonalds will never sway most people to believe in a new image until the older generations shuffle off this mortal coil.

It's similar to the progress of scientific paradigms. "Science proceeds with funerals," Max Planck is supposed to have said. What he actually said was: "A new scientific truth does not triumph by convincing its opponents and making them see the light, but rather because its opponents eventually die, and a new generation grows up that is familiar with it."

kdawson
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Blogger
Re: Pepsico and social media
kdawson   3/15/2012 4:30:30 PM
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Yes, it's all about money for corporations, but it's public taste and sentiment that will direct what products they make to earn that money. I applaud the shift in the US towards more healthy food choices.

Tom Murphy
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Blogger
Re: Pepsico and social media
Tom Murphy   3/15/2012 11:07:46 AM
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@Munira: I think it also gives the companies an option. If the public turns strongly against sodas and chips, then PepsiCo has another path to follow -- oatmeal, orange juice, premium water, sports drinks.  Keeping your options open is  a key element of agility, right?

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