🤖 AI Summary
Overview
This episode dives into the challenges of corporate succession planning, PepsiCo's strategic shifts in pricing and product positioning, the evolving tone of Super Bowl advertising, Texas' booming retail construction, and the growing demand for skilled workers in the live entertainment industry.
Notable Quotes
- Choosing a CEO has higher stakes than almost any other decision a company's directors will ever make.
– Stephanie Hughes, on the complexities of corporate succession.
- Retail follows rooftops.
– Bob Young, on the connection between population growth and retail construction in Texas.
- A Sabrina Carpenter concert is essentially this massive construction project done at the precision of a Michelin star restaurant.
– Drew Millard, on the complexity of live music production.
🎭 Corporate Succession Challenges
- Disney's CEO transition highlights the difficulties of leadership changes, with Bob Iger stepping down (again) and Josh DeMorrow stepping in.
- Stephanie Hughes explains that effective succession planning involves boards building relationships with potential leaders while avoiding premature anointment to retain talent.
- CEOs often struggle to remain objective in the process, and boards must balance hiring someone who fits the company's future needs rather than cloning or opposing the outgoing leader.
🥨 PepsiCo's Strategic Adjustments
- PepsiCo is cutting snack prices by 15% ahead of the Super Bowl to address affordability concerns as inflation impacts consumer spending.
- The company is also marketing snacks as healthier, such as protein-enhanced Doritos, though some changes are more about perception than actual product reformulation.
- PepsiCo's cola products lag behind Coca-Cola, prompting a focus on zero-sugar varieties and creative Super Bowl ads to regain market share.
📺 Super Bowl Advertising Trends
- This year's ads lean heavily on celebrity endorsements (e.g., Kendall Jenner, Andy Samberg) as brands avoid controversial or polarizing messages.
- Kristen Schwab notes a shift toward straightforward product-focused ads and early releases to mitigate risks of backlash.
- Live events like the Super Bowl remain critical for advertisers due to their unmatched ability to reach massive, simultaneous audiences.
🏗️ Texas' Retail Construction Boom
- Texas leads the U.S. in retail construction, driven by population growth and demand for physical stores, particularly supermarkets and power centers.
- New retail spaces increasingly incorporate amenities like gyms, entertainment venues, and pickleball courts to attract consumers.
- Immigration policies and economic shifts may slow construction growth, but Texas remains a bright spot in the retail sector.
🎤 The Roadie Workforce Evolution
- The live music industry faces a labor shortage as veteran roadies retire, prompting efforts to recruit and train new talent.
- Careers in live entertainment, including roles like drone operators and technicians, offer competitive salaries starting around $60,000, with potential for significant earnings.
- Drew Millard highlights the industry's push to attract workers through trade schools and career fairs, emphasizing the transferable skills to other sectors like theater and sports.
AI-generated content may not be accurate or complete and should not be relied upon as a sole source of truth.
📋 Episode Description
It's a big week for major televised events: The Winter Olympics kick off Wednesday and Super Bowl Sunday is nigh. Brands used to save their biggest, splashiest ad for such a slot. But this year, firms are pulling out all the stops to avoid controversy, or so much as hinting at a current event. Plus: Disney shows CEO selection is tricky business, PepsiCo announces price cuts on key salty snacks, and retail construction booms in Texas.
Every story has an economic angle. Want some in your inbox? Subscribe to our daily or weekly newsletter.
Marketplace is more than a radio show. Check out our original reporting and financial literacy content at marketplace.org — and consider making an investment in our future.