Strategic Brilliance or Blunder: Is Pepsi’s making a mistake by not advertising in the Super Bowl?

12/17/2009

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Salient data points:
§  23:  # of consecutive years of Pepsi Super Bowl advertising
§  7.3%:  Pepsi’s volume decline in first nine months of 2009
§  2.3%:  Soft-drink industry’s  volume decline over same period
§  6.6%:  Coke's volume decline over same period
§  $74.6M:  Pepsi brand ad investment in 2008
§  60%:  year-over-year (YOY) increase in Pepsi’ online ads in 2010
§  $3M:  Cost of 30-second Super Bowl
§  98.7M:  # of 2009 Super Bowl viewers

Strategic Brilliance or Blunder:  Brilliance.  The TV ad spot is becoming less relevant as “marketing with meaning” is gaining more traction.   

Source(s):  WSJ, Beverage Digest, TNS Media Intelligence
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Strategic Brilliance or Blunder: Google’s Phone Marketplace Entry

12/17/2009

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Is Google’s phone strategy a good one? 
§  Google is launching its own smart phone called Nexus One early in 2010
§  Sales distribution model #1:  phone sold directly by Google to consumers, without the standard carrier subsidy that permits a $200 price point
§  Sales distribution model #2:  phone sold with carrier subsidy
§  Potential advantages:  tighter integration of Android O/S  with hardware; more control over mobile search adverting business model; an opportunity to better showcase Google apps; greater influence over users’ mobile Web experience
§  Potential disadvantages:  alienating Android licensees and partners (manufacturers, carriers)

Strategic Brilliance or Blunder:  Brilliance.  The tighter integration with hardware, coupled with Google’s open architecture platform and “simplicity” principle might lead to all of the advantages cited above.

Source(s):  WSJ
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