Wednesday, February 1, 2012

Pepsi May Increase Advertisment Budget

In recent years Pepsi has been outspent by Coca Cola on advertisement by over a billion dollars. Last 3 years Pepsi spent under 2 billion dollars while coke spent about 3 billion dollars. Pepsi has been spending around 3% of sales on marketing while coke has been spending 8% of their total sales. This is pretty shocking because I consider Pepsi to be Coke's underdog so I would expect them to spend more than coke to try and catch up. This week Pepsi is going to outline their plans for increased marketing and analyst predict it will increase 400 - 500 million dollars this year on soda and snack advertisement. I also heard a rumor that Pepsi's Superbowl commercial is going "taking the gloves off" and attacking coke's polar bear, so that might be something to look out for this weekend. Has anyone else heard of Pepsi increasing their advertisement investment? Do you like Pepsi or Coke better? Do you think Pepsi should be spending more on advertisement to catch up with coke?
Source

Facebook IPO

This is in response for Chris Morin's post about the Facebook IPO. I have been reading a lot about the IPO that Facebook filed today. I for one will definitely be buying some stock in them because for the foreseeable future it will be a website that is used everyday by millions of people. It is estimated to be worth 100 billion dollars because of its huge amounts of users and because of how much advertisements the site can provide. Unfortunately, you will not be able to buy the stock yet because they only filed the IPO today and it will not actually be trading until April or May. The stock price is estimated to be in the rage of 30-45 dollars a share so it isn't going to be that cheap or easy for a college student to invest in but if you have a few hundred laying around it is a must buy. and for those who don't know much about IPO's, be careful when you buy it because on its first day of trading it is going to skyrocket and then drop to a reasonable price because of the huge demand for it. How much are most people willing to pay for it?