Market Segmentation As we know that PepsiCo provides varieties of beverages such as carbonated soft soft drinks, drinks, sport sport drinks, drinks, dairy dairy-bas -based ed drinks, drinks, energy energy drinks, drinks, fruit fruit flavor flavored ed beverages beverages,, ready-to-dr ready-to-drink ink coffees, coffees, ready-to-d ready-to-drink rink tea, mineral mineral water and froz frozen en beve bevera rage ge.. Thes These e prod produc ucts ts are are mark market eted ed unde underr brand brand as Peps Pepsi, i, ountain !ew, "atorade, #ipton, $tarbucks, Tropicana, and so on. %ith these products, PepsiCo aims to attract different groups of consumers. consumers.
There are
two two leve levels ls in whic which h Peps Pepsii segm segmen ents ts its its mark market et&& Demogr Demographi aphic c and Niche Niche marketing. ' Demographic (n focusing on the Pepsi-Cola beverage product, PepsiCo has retained a long history of concentrating on youth as its main target market ) *"eneration +et (t has spent billions of dollars in trying to woo the young and nearly young, implying that Coca-Cola is for the older generation. The reason why Pepsi Pepsi-Co -Cola la has fierce fiercely ly target targeted ed this this market market is becaus because e it is the larges largestt amongst its users. arket segment profiles have shown that the ma/ority of carbonated beverage drinkers are youth and middle age people. Also, Pepsi continually targets the college market in which they spend huge amounts of money to compete with Coca Cola in ac0uiring contracts with universities 1i.e.& C$234 to have sold representation of their product distribution. Pepsi5s use this behaviorist segmentation has been a key to the company5s success.
Niche Marketing Pepsi focused on varietal differentiation since 6778 by introducing a string of niche products. To increase volume in order to counter flat coca sales, Pepsi introduced $ierra ist in 9889-988: to take the place of ;-up and go headto-head with $prite. Pepsi has also tried to boost volume by introducing prod produc ucts ts that that appe appeal al to speci specifi fic c targ target et mark market ets s that that it curr curren entl tly y is not not reach reachin ing. g. Pepsi Pepsi has has intr introd oduc uced ed Code Code
ountain !ew, Pepsi =ne, and Pepsi >lue.
3inally, Pepsi is countering
declining sales of carbonated drinks through the marketing and distribution of $tarbucks ready to drink products, and the ac0uisition of $=>? and "atorade. The success of Pepsi5s ountain !ew Code
Bases of Segmentation:
Market Targeting Pepsi customers are mostly Teenagers and @oung Adults between the ages of 6 to :8. (t also targets at $chools, Colleges, 2niversities, Bomes,
addition, Pepsi shifted its focus to the growing American teenage market in the 6778s by forming eclusive contracts with American schools and developing advertising campaigns such as *The +et "eneration and the *Eoy of Pepsi, featuring >ritney $pears. Pepsi believes that if they can get this market to adopt their product, they could establish a loyal customer in a long run.
Market Positioning PepsiCo 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.
