Paying Attention to the Paycheck Cycle

PepsiCo Inc. has found that paying attention to the paycheck cycle (the cycle revolving around receiving a paycheck), especially in today's economy, really pays off. Consumers buy more at the begining of the month when they first recieve their paychecks, and less at the end of the month when money is running low, and planning marketing strategies around this cycle has increased PepsiCo's profits. John Compton, CEO of PepsiCo America Foods, said "The first of the month we might promote bigger sizes and at the end of the month we might shift down to smaller sizes...it's worked well."

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Consumer-Goods Makers Heed 'Paycheck Cycle'