After searching the web for something interesting that is currently occurring in the marketing world I came across an article on the Direct Marketing News website, there were many current articles but I found one to stand out more than others. The article that I chose was one about Pepsi and how they plan to expand their marketing and advertising by up to 500 to 600 million dollars this year alone which is a significant amount of money even for a company of this size. Their CEO and Chairman Indya Nooyi stated that 2012 "will be a transition year, in which we will be taking the appropriate steps to build a stronger, more successful company going forward." This is an interesting approach that the company is deciding to take because they stated that last year they had reported an 11% increase in revenues from the fourth quarter in 2011, this is an extremely large increase in revenue for a company that is so big and that has been around for as long as it has. They said that this increase in marketing and advertising will go to some of their more powerful and key brands such as Pepsi cola, Gatorade, Tropicana and Mountain Dew. They are taking an interesting approach to this year because they are calling it a Transition year and as they are starting to spend hundreds of millions of dollars on these marketing campaigns they are also planning on cutting up to 3% of its global workforce which accounts for nearly 8700 jobs over the next 3 years. The reason that I find this marketing plan to be confusing is because they plan to save 1.5 billion dollars over the next three years. This raises the question to many consumers, why is it that they are boosting their marketing while they plan to cut down their work force. This doesn't seem to match up to me because if they were looking to save money they would not plan on boosting their marketing while cutting their workforce in order to save money for the projected fiscal year of 2014. In conclusion i feel as though Pepsi could make some changes and still see a profit saving for 2014 while saving thousands of jobs. In my opinion I think a company that is that big will lose money though its consumers realizing that they are cutting jobs in order to save money while boosting their marketing campaign, so i leave you with this question. What is more important to a corporation such as Pepsi saving some money by cutting jobs and boosting marketing or looking bad in the public's eyes for cutting jobs for monetary gain?
