It's a small point compared with commodity pricing and global demand, but Pepsi has upset a small but extremely passionate group of consumers by deciding to sponsor Michael Vick.
In fact, not only have they decided to sponsor Michael Vick, they are protesting their innocence, claiming that they are merely sponsoring the Philadelphia Eagles.
The social media realm is buzzing with this, especially as the NFL comes back to life.
I mention this because I DO think social media is particularly important for a consumer brand such as Pepsi, and they might want to take their irate consumers more seriously than just sending out form letters which then get posted and mocked on the internet. Look what a strong POSITIVE social media presence did for Dunkin' Donuts!
I am appropriatly chagrined and have made the gender corrections below. Thanks.
No CEO (she or he) ever offers the credit for a great quarter to the regulatory environment or other factors outside their control. Somehow, when it's good results, they can always think of something within their control that contributed - they can always find a way to take the credit.
One thing to keep in mind about Pepsi is that huge snack side piece. The company has a number of products that it plans to take to emerging markets like China and Russia. We already know Russians love their beer, so salty snacks can't be far behind.
Yes I agree you can blame the economy, you can blame the weather and anything else you can think of. Even if you are right the fact remains that others in the same business are still doing better than you. That means that there are things you can still do even with the bad economic conditions. It shows that you are lacking compared to your competitors.
I think you are right - that the Pepsi needs to innovate more. Generally they have expanded by puchasing other companies. If people are moving to other drink categories, then they need to have an offering there.
I read an article last week saying that pepsi will plan an advertising blitz to gain back share. I really think they need to do something about products and be a little more inventive. Coke seems to innovate better and they get a reward for that. Pepsi has done well with the snack foods market, but seems to have lost the formula for soft drinks.
When the CEO blames the US economy for our woes as his stockholders, she may be exactly right, but it's still a red flag. Instead, I want to see her focus on what she's doing to solve the problem.
This reminds me of the conversation i sometimes have with my sons after a baseball or basketball game. It's after a loss, and my son's explanation is all about one bad call by the ref. Really? Now, what can you do about that?
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Well, he (the CEO) is a she...but otherwise, I think your points are valid.
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