3/02/2005

PepsiCo and Obesity

PepsiCo is taking an interesting approach to the Obesity lawsuit craze. (http://www.msnbc.msn.com/id/7067184/) Pepsi is trying to be proactive in protecting itself from the obesity lawsuit age that we live in. Will trying to steer its adds away from kids have a positive or negative effect on demand? I think that demand won't be changed a whole lot. PepsiCo has already made inroads with parents so steering advertising away from kids will most likely be very inelastic because brand loyal parents already introduce pepsi products to their kids.
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1 comment:

Dr. Tufte said...

-2 on Ron's post for a poorly formatted link and grammatical errors.

I think the post said it best - Pepsico is trying to be proactive about the potential for lawsuits and regulatory damage.

My guess is that this won't effect them that much. There is a lot of evidence that advertising increases revenue, but very little that it increases profits.

6:29 PM

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