coke

Samsung’s Massive Marketing Budget (AAPL)

Source: http://www.businessinsider.com/chart-of-the-day-samsungs-massive-marketing-budget-2012-11

Another great chart from Horace Dediu at Asymco. He looks at the advertising budget of Apple, Samsung, HP, Dell, Microsoft, and Coke. Why include Coke? Because it’s a huge advertiser, and its “primary cost of sales is advertising.”

As you can see, Samsung is blowing all the companies away in advertising and marketing.

Not a bad price to pay, if it means you get to become the world’s biggest smartphone company. Certainly HTC wishes it had Samsung’s marketing budget.

chart of the day, samsung's marketing budget in context, november 2012

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tropicana carton redesignThis post originally appeared at Newser

PepsiCo’s plan to increase profit margins for its Tropicana orange juice is simple: Just add water. Apparently some consumers are already doing that on their own, in order to get a less-thick or lower-calorie beverage. “They themselves add water before drinking OJ,” a PepsiCo exec tells Bloomberg. “So why not add the water ourselves and charge for it?” Tropicana lost market share to Coca-Cola Co.’s Minute Maid and Simply Orange brands after PepsiCo repackaged its juice three years ago.

Now, instead of continuing to compete in the 100% juice category, PepsiCo will focus on different products with higher profit margins. One such product—Trop50, which contains 42% orange juice and uses a low-calorie stevia-based sweetener—has already been successful. Says the exec, “We have lost perspective here on the primary reason we are in business, which is to make money.” Consumers will always know what they’re getting, thanks to strict FDA juice labeling guidelines.

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Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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