S-T-PSEGMENTING TARGETING POSITIONING
Introduction: PepsiCo is a world leader in convenient snacks,
food and beverages with revenues of more than $39 billion and over
185,000 employees. The company consists of PepsiCo Americas Foods
(PAF), PepsiCo Americas Beverages (PAB) and PepsiCo International
(PI). Besides the Pepsi-Cola brands, the company owns the brands
Quaker Oats, Gatorade, Frito-Lay, SoBe, Naked, Tropicana, Copella,
Mountain Dew, Miranda and 7up. PepsiCo s products are recognized
and are most respected all around the globe. Currently, PepsiCo has
divisions which operates in three major US and international
businesses: beverages, snack foods, and restaurants. In each of
these businesses, PepsiCo has attained a leadership position -as
being the world leader in soft drink bottling, -the world largest
snack chip producer, -and the world largest franchised and company
operated restaurant system.
The cooperation s increasing success has been based on high
standards of performance, marketing strategies, competitiveness,
determination, commitment, and the personal and professional
integrity of their people, products and business practices. PepsiCo
s overall mission is to increase the value of our shareholders
investments through sales growth, investments and financial
activities. PepsiCo believes their success depends upon the quality
and value of their products by providing a safe, whole some,
economically efficient and a healthy environment for their
customers; and by providing a fair return to their investors while
maintaining the highest standards of integrity.
Market SegmentationAs we know that PepsiCo provides varieties of
beverages such as carbonated soft drinks, sport drinks, dairy-based
drinks, energy drinks, fruit flavored beverages, ready-to-drink
coffees, ready-to-drink tea, mineral water and frozen beverage.
These products are marketed under brand as Pepsi, Mountain Dew,
Gatorade, Lipton, Starbucks, Tropicana, and so on. With these
products, PepsiCo aims to attract different groups of consumers.
There are two levels in which Pepsi segments its market:
Demographic Niche marketing
Demographic MarketingDespite the large customer base in the Soft
Drink industry, Pepsi prefers to segment itself as the beverage
choice of the New Generation , Generation Next, or just as the
Pepsi Generation . These terms adopted in Pepsi s advertising
campaigns are what marketers refer to as Generation X, which are
profiled to be between the ages of 18 to 29. In addition, Pepsi
shifted its focus to the growing teenage market by forming
exclusive contracts with schools and developing advertising
campaigns such as The Next Generation and the Joy of Pepsi ,
featuring Celebrities. Pepsi believes that if they can get this
market to adopt their product, they could establish a loyal
customer in a long run.
Niche MarketingPepsi focused on varietal differentiation since
1990 by introducing a string of niche products. To increase volume
in order to counter flat coca sales, Pepsi introduced 7-up and go
head-to-head with Sprite. Pepsi has also tried to boost volume by
introducing products that appeal to specific target markets that it
currently is not reaching. Pepsi has introduced Mountain Dew, Pepsi
One, and Pepsi Blue. The success of Pepsi s Mountain Dew launched
in 2001 was the most successful soft drink innovation in 20 years
and has spurred even more niche product introductions for PepsiCo
as well as other competitors.
Basis for segmentation
Market Targeting Pepsi customers are mostly Teenagers and Young
Adults between the ages of 14 to 30. It also targets Schools,
Colleges, Universities, Homes, Restaurants, Hotels, and Stores
Market PositioningPepsiCo plans to further create positions that
will give products the greatest advantage in their target markets.
Pepsi has been positioned based on the process of positioning by
direct comparison and have positioned their products to benefit
their target market.
