Ch5 Article 3 - Corporate News: Consumer-Goods Makers Heed...

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Page 1 of 2 2009 Factiva, Inc. All rights reserved. Corporate News: Consumer-Goods Makers Heed 'Paycheck Cycle' By Anjali Cordeiro 751 words 23 February 2009 The Wall Street Journal J B3 English Makers of household goods and food are paying more attention to the "paycheck cycle" as cash-strapped consumers are showing a tendency to make their largest purchases when their salaries first come in and to cut back as that money runs out. With more consumers living from paycheck to paycheck, some companies have looked at ways to time their promotions around periods when consumers' wallets are likely to be well cushioned. PepsiCo Inc.'s Frito-Lay snacks business in some stores has tried "promotions that are different at the beginning of the month than at the end of the month," Chief Financial Officer Richard Goodman said in a recent interview. "People have more money to spend at the beginning [of the month] and a little less at the end," he said. The insight to promote around paychecks came from one of the company's retailers, said John Compton, the chief executive officer for PepsiCo Americas Foods. That retailer noticed "the strength of the first of the
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This note was uploaded on 01/26/2011 for the course MKT 337h taught by Professor Staff during the Spring '08 term at University of Texas at Austin.

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Ch5 Article 3 - Corporate News: Consumer-Goods Makers Heed...

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