PepsiCo

Coke And Pepsi’s Business Model Is ‘Insane’ (SODA)

Source: http://www.businessinsider.com/coke-and-pepsis-insane-business-model-2012-11

crushed coke

SodaStream CEO Daniel Birnbaum has an incentive to disparage his rivals — but nontheless he made a strong argument as to why Coke and Pepsi are “antiquated” and “insane.”

Some unusual candor in an interview with WSJ’s Simon Zekaria:

“Coca-Cola Co. and PepsiCo will have to face the reality that their business model cannot be preserved forever. The world is changing and we’re going to call it out,” says the CEO of SodaStream. 

“If the beverage industry had to create itself now from scratch, it wouldn’t do it the way it is. You don’t need factories, trucks, bottles and cans,” he says. “Transportation for carbonated drinks in the world utilizes 100 million barrels of oil every year. That is 20 times the BP disaster that hit the Gulf of Mexico.”

“I think it is criminal that the industry, led by two big companies, will do anything to protect their antiquated business model. They are generating 35 million bottles and cans every single day in the U.K. alone. World-wide it is one billion bottles and cans, most of which just go to trash, landfill, the oceans or parks. It’s insane,” Mr. Birnbaum added.

Now that he mentions it, that does seem wildly inefficient.

Of course, inefficient companies can last a long time thanks to all of that infrastructure in place. And if the industry is disrupted by a new company, there’s no guarantee that company will be SodaStream (which is one of the most shorted stocks on the market).

Don’t miss: The Complete HIstory Of Sodastream >

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Wednesday, November 14th, 2012 news No Comments

The Days Of Traditional Mass Marketing Are Over

Source: http://www.businessinsider.com/frito-lay-cmo-the-days-of-traditional-mass-marketing-are-over-2012-7

times square new york

The marketing world is changing. Marketers have more channels than ever to get their message across, but not everyone out there is doing it right.

We spoke with Ann Muhkerjee, SVP and CMO of Frito-Lay North America, about where marketing is going as technology and consumers change.

I think what people want are brand experiences,” says Muhkerjee. “I think the days of traditional mass marketing are kind of over.”

Companies, especially those promoting big brands, can’t settle on launching a national ad campaign that consists of a bunch of billboards and television commercials. They have to hit many platforms, and they have to connect them.

“[Marketing] has to be a conduit into the multi-screen world that everyone’s living in,” she says. “How do you connect TV to social to mobile to apps to outdoor? How do you create a two-way conversation?”

Take pop-up stores, for example. Muhkerjee considers them a way to provide customers something to “engage and play” with. That’s why it opened a pop-up store in Times Square to promote the million-dollar Lay’s flavor creation contest.

There’s a trap that marketers may fall into though, says Muhkerjee. People are always trying to simplify things into a formula, but that’s just not possible. Every brand should have a different strategy, because every brand is unique.

How do they do this at Frito-Lay — a part of PepsiCo — a company that has a huge assortment of big-name brands?

Since Frito-Lay has the backing of a large multinational, and it can use its strengths (like global manufacturing and a big research budget) to capture local markets’ imagination fast.

“The ability to leverage the scale of our company and make it flexible,” says Muhkerjee. “Our ability to then translate that to local substance. That’s our secret. A potato chip is a potato chip globally, but the flavor, we lift and shift flavors all the time.”

NOW SEE: 16 Failed Soda Brands You’ll Never See Again >

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Friday, July 20th, 2012 news No Comments

PepsiCo Discovers Consumers Will Pay More For Orange Juice With Less Juice (PEP)

Source: http://www.businessinsider.com/pepscico-discovers-consumers-will-pay-more-for-watered-down-orange-juice-2012-2


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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Wednesday, February 15th, 2012 news No Comments

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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