http://money.cnn.com/2007/02/13/commentary/sivy/sivy.moneymag/index.htm?postversion=2007021309
This article pretty much says that Pepsico is doing very well because they've not only cornered the market on salty snacks but the "thirst-quenching" beverages that often accompany them.
So, basically, we all know that Pepsi is one of the world's biggest suppliers of cola, and junk food is often a complementary good to soda. By basically creating thirst through their junk food, they raise the demand for Pepsi. By selling Pepsi, they raise the demand for junk food and other salty snacks. It's called "synergy", apparantly. It's pretty brilliant.
Conversely, it could backfire on them. You could buy a Pepsi product but instead of heading for its subdivision of Frito-Lay, you could choose a different snack. But overall, it's a pretty good business plan.
Tuesday, February 13, 2007
why pepsi is pretty much going to take over the world.
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5 comments:
That is incredibly ingenious. Who ever thought of the idea to use a complimentary good to increase the slae of the other should get a raise becasue the company has launched into mega profit territory!
that is pretty interesting...
i agree with beth in the fact that this could backfire on them and they could buy a coke product instead, but it is still pretty nifty.
now, let me tie this back to MY article...they could target stoners and make even more money! Haha, no just kidding, but i think there are a lot of other product that pepsi could and probably will try to tie into their market, because whenever there is money to be made, people will try and earn it.
Fascinating idea - that they even have a name for it! The $60 some odd increase for the quarter is HUGE. Smart advertising.
Even if someone buys a different snack product, they still have a good corner of the market - the wonders of an oligopoly. Great evidence for that, btw. Remind me later when we get to talking about them.
:)
(PS - let them make fun of you for going to econ camp...you had fun and that's awesome.)
:) :)
yeah that's right, econ camp is cool!
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