Objectives and Promotional Budgeting
44 views | +0 today
Follow
Objectives and Promotional Budgeting
Establishing objectives and budgeting
Curated by Eden
Your new post is loading...
Your new post is loading...
Scooped by Eden
Scoop.it!

PepsiCo May Boost Marketing Budget to Take On Coca-Cola: Retail

PepsiCo May Boost Marketing Budget to Take On Coca-Cola: Retail | Objectives and Promotional Budgeting | Scoop.it
PepsiCo Inc. Chief Executive Officer Indra Nooyi has taken over a coconut-water company, acquired a dairy in Russia and spent millions on a philanthropic marketing campaign. Her next big investment has a more familiar name: Pepsi-Cola.
Eden's insight:
This is a prime example, 'Coca-Cola vs PepsiCo.' Coca-Cola's effective marketing budget has clearly shown to be an investment as they have received a sufficient amount of sales in return. PepsiCo should be considering their competition's (Coca-Cola) percentage of sales expenditures, when revising their marketing budget.
more...
Gregory Farr's comment, August 21, 2013 6:44 AM
I think an important part of this article is even though Pepsi-co has made a few errors in the past and has lost market share towards coca-cola but they have been able to pinpoint where the mistakes have come from and make appropriate plans in order to try compete more successfully against coca cola. Pepsi was able to locate they had lost support from loyal customers because they had over focused on healthier ranges and spending less time on the more original brands like Pepsi itself. Missing the Superbowl advertisement after 23 years would have been a shock to these loyal fans and they would wonder does pepsi care about them less. The good news is Pepsi can now plan and prepare and have decided to invest more money into the advertising which shows why its not just important to plan marketing promotions but also afterwards evaluate the success and then further plan where to move on from here. Therefore this article shows that even though Pepsi has made mistakes they have the right idea within planning and evaluating promotions.
Savanna Steele's comment, August 22, 2013 7:43 PM
This article is interesting, I had always been lead to believe that pepsi had be fighting to dominate the market against Coca-Cola, however in this article Pepsi actually stepped back from promoting its soft drinks through pulling out of advertising opportunities and major partnership deals. It was stated because they wanted to focus on there other products however, by doing so there share of the market dropped dramatically. Now they have the challenge of trying to regain the share market they loss and make up for the profit loss.
Anna Bairstow's comment, August 22, 2013 11:30 PM
This is an interesting read, Finau! I've always been intrigued about the competition between Pepsi and Coca-Cola. Completely agree with you and Savanna's insight on this article. Pepsi will really need to step up their marketing strategy if they want to gain more popularity and generate more sales than their competing brand Coca-Cola. More brand building and brand identity is needed in order for people to trust and become loyal to the Pepsi brand over Coke. They can put all the money they want into various advertising campaigns, but they need to get the message right to effectively communicate and connect with consumers, as Coca-Cola does so successfully!
Scooped by Eden
Scoop.it!

Establishing Objectives and Budgeting for the Promotional Program

Establishing Objectives  and Budgeting for the Promotional Program | Objectives and Promotional Budgeting | Scoop.it
Can we measure the ROA? Oopsss ! This is not Return on Assets, this one time and it is: RETURN ON ADVERTISEMENTS Is it hard to measure this ROA? Although a number of metrics can be used as a proxy ...
Eden's insight:

Budgets are there to help achieve the objectives. Advertisement Budgets should be seen as an investment and not as exposure. 

 

When establishing a budget there should be consideration about the products life cycle, competitors and differentiation. 

 

There are two types of budgeting approaches to follow:

 

1) Top-Down Budgeting-

Management will set the spending limit first. Then the promotion budget is set to stay within that spending limit. Managers will firstly look at the required funds, and the budget will be determined on the basis of what is felt necessary.

 

Theres an assumption that the Top-Down Budgeting approach is most common to be used for small businesses, as there are financial limits.

 

2) Bottom-Up Budgeting- Where the objectives are set first, followed by the steps to achieve those objectives then the costs are budgeted. 

 

This approach is most suitable for Large businesses.

 

more...
Labroye Tauevihi's comment, August 22, 2013 9:21 PM
There are many important and critical aspects in regards to the objeectives of promotional capaigns that I have read in this article. The discussion of the SMART chart is effective and should be applied to all those that are dealing within the same field. Having a clear and concise SMART goals will be a huge advantage, and will also build a much more clearer knowledge of what objectives and goals the brand is aiming for.
Yuhang Wei's curator insight, September 16, 2013 1:08 AM

As the article mentioned, communication; planning and decision making; measurement and evaluation are three important elements to consider to measure the ROA (Return on advertisements). In the IMC workshop we watched a video made by NZ Transport Agency called "Legend" also known "Ghost chips". That is a really good example to show how the ROA is acheived because this ad is very popular and discuss by many people. It can explained by "SMART" model and also it link to IMC. Marketing is quite different with IMC, marketing is more about how to deliver the value to its target market and IMC in some level deliver specific information to ahcieve it.

Shichi Zhong's curator insight, May 14, 2014 12:23 AM

As the article mentioned, communication; planning and decision making; measurement and evaluation are three important elements to consider to measure the ROA (Return on advertisements). In the IMC workshop we watched a video made by NZ Transport Agency called "Legend" also known "Ghost chips". That is a really good example to show how the ROA is acheived because this ad is very popular and discuss by many people. It can explained by "SMART" model and also it link to IMC. Marketing is quite different with IMC, marketing is more about how to deliver the value to its target market and IMC in some level deliver specific information to achieve it.