Description: PepsiCo (PEP) recently announced that it will add an additional $500 million to $600 million to its roughly $2 billion advertising budget to support its soda brands in 2012, in an attempt to catch up with the heavy spending (and sales gains) of archrival Coca-Cola (KO). Meanwhile, Dr Pepper Snapple Group (DPS) recently upped its $445 million ad budget by $25 million to $30 million, having gained market share by raising spending by double digits during the recession. If there’s one thing Big Soda understands, it’s that advertising works.
Questions for discussion:
- Explain the packaging strategies used by the soda companies?
- How do these strategies come together with all of the other marketing thinking?