market segmentation of pepsico

2021/05/21

Pepsi consumer demographics comprise average to high income earners, including students, employees and professionals. Snacking is a national pastime, so the snack foods: pretzels, chips, multi-grain snacks, granola bars, cookies cereal, rice sides, eat-and-heat foods, would target all markets. With a market analysis that considers Pepsi demographic segmentation, as well as its geographic, behavioral and psychographic segmentation data, businesses can get to know the Pepsi target audience.

(pepsicos-three-channel-distribution-network, n.d.), Pepsi's efficient management of production and distribution and strong control over its expenses, Pepsi has maintained a significant earnings and profits for its shareholders. In 2012, Pepsi's president of global enjoyment and chief creative officer Mr. Jakeman said, Thus, Pepsi has positioned the brand to "capture the excitement of now" while leading a campaign with a slogan that says "Live for now". Sales promotions such as Buy 2 Get 3 free promotions are a huge hit with consumers; however, these normally attract only the split-loyals and switchers. Sorry, preview is currently unavailable. In 2022, the company behind Pepsi, PepsiCo, is one of the top companies in the world in terms of market capitalization, valued at just over $238 billion. This adds an economic value for the consumer because both drinks are similar in taste but the cheaper price of Pepsi makes it a more valuable product to obtain. Primarily the target market for PepsiCo products is anyone they can reach in the market. Studymoose.com uses cookies. They are committed to not advertising to children under the age of 12 products that do not meet healthy nutritional criteria (PepsiCo, n.d.). Changes in consumer preferences due to the concern of potentially dangerous substances that lead to health issues and obesity could lower the demand for a number of their products. You can choose from the regular cola to diet cola and also 1 caffeine free cola to caffeine free diet cola. Psychographic segmentation divides buyers into different groups based on psychological/personality traits, lifestyle, or values. In 2021, Pepsi Zero Sugar (known as Pepsi Max outside of the US), Although it is well known that Coca-Cola is Pepsis top competitor by far, the list of PepsiCo competitors also includes, . Geographic segmentation can divide the market into larger and then smaller units. In the beverage industry, these rivalries grow significantly every year due to the shrinking market, forcing them to compete for smaller market shares . There youll find data-based insights for 500+ consumer segments across all categories and geos ready for you to explore, so you can create better mobile campaigns and better targeting strategies for your business. This involves attracting new consumers' to existing products. Academia.edu no longer supports Internet Explorer. Don't use plagiarized sources. (pepsicos-three-channel-distribution-network, n.d.) DSD is basically delivering the products directly to the retail store which is done by Pepsi itself. Behavioral segmentation divides buyers into groups based on their knowledge, attitude towards, use of, or response to a product (Kotler & Keller, 2012). 1@HR6] bg9-L E% This makes them very dependent on the U.S. market for majority sales. Segmentation and Target Marketing. Labor strikes in countries like India and China are big reasons of the low productivity of Pepsi that have occurred in the recent years. pepsico pep But opting out of some of these cookies may have an effect on your browsing experience. Students looking for free, top-notch essay and term paper samples on various topics. and then Add to Home Screen. Loyal Coca-Cola drinkers are a large target market, but getting them to choose a different brand over the one they have been loyal to for a lifetime takes some work. Pepsi is planning to lay off 3% or 87,000 of its employees which would increases unemployment rate (business insider, 2012). In response, Coca-Cola released New Coke, an upgraded formula designed to win back the consumer mindshare lost as a result of Pepsis successful taste tests. (pepsi-positionigpepsi-has-historically, n.d.). Given this impressive reach, it follows that the Pepsi target audience is quite broad. Change Lab Solutions. Loyalty status is a place where with the right advertising and marketing, PepsiCo could possibly position themselves to the number one position. Calling its consumers the "Pepsi generation", the beverage Pepsi has positioned itself with the youth and people who want to feel young at heart. By continuing, you agree to our Terms and Conditions. It will always taste the same to what our customers are used to. People who are outgoing, fun-loving and full of life, people who love sports, music as well travelling. Use of them does not imply any affiliation with or endorsement by them. Today, the PepsiCo company markets hundreds of brands and thousands of products in the food and beverages category, including many globally renowned and popular names, such as Lays, Mountain Dew, Quaker Oats and many more. PepsiCo is one of the largest food and beverage companies in the world. As for opportunities and threats, we saw the opportunity Pepsi has begun to take with investments in the BRIC countries, which are quickly growing in the beverage and food markets, with plans to increase its market shares and lower its dependence on the U.S. market. The increased range of their products are highly likely to attract much more consumers which will result in a gain of market share. Strong U.S. exchange rates could result in lower overall income, threatening many multinational companies' bases in the U.S. PepsiCo has earned about half of its revenue outside of the U.S. which means they receive a large amount of their profits in foreign currencies. Their mission statement is strong and they stand behind it.

(n.d.). By finding new uses for current products, it encourages additional sales among existing customers while also bringing in new buyers . All of the products in the PepsiCo beverage and food line are for all occasions, a user would be any consumer wishing to make a purchase, and the usage rate would vary as much as the type of food or beverage would vary. The brand focuses on similar demographics for its more diet-conscious Pepsi Max target market, who are interested in a tasty sugar-free cola option. (n.d.).

.cL^>xs;(]_F9%SIN=WO0yMF2"zuG:'0T>c1WQ}Hdo tH'!1,sat9y^;RUEL_Jq6X=}t5dlA n.SI:Wumhp}&W.v'Q5f-_&{\7^u\5;in&VMjHyDD/MV{""k-er{48JtdqFab!h4X9Mq People who are on diets and are trying to maintain or reduce their weight would essentially be attracted to buying Pepsi beverages. This will only get worse as the water scarcity issues look to be around for the foreseeable future, causing problems for the company's operations. With all their different products, they hit several different target segments and markets. This website uses cookies to improve your experience while you navigate through the website. $500 million to 1.1 billion while its counterpart Coca-Cola's is spending approx. Unavoidable competition in the industry, mainly from Coca-Cola, grows significantly every year. Obtaining new companies will give them a wide range of products that can be bought by the consumers. By diversifying, they are growing every day. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Such commitments to an effective distribution led to the main 3 delivery systems it has for North America. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. First quarter 2022 results for PepsiCo showed an impressive 6% volume increase for the beverages segment of the business. It is a cheap and tasty drink made for everyone (children and adults) which is available almost everywhere. They are innovators, and have strong partnerships and alliances with companies like IBM. Pepsi is sold in over 200 countries around the world, appealing to consumers in urban and rural settings. The Pepsi challenge, which has been a very successful marketing campaign, has been able to win over some die-hard Coca-Cola customers. This generation is part of the reason that PepsiCo is in the number two position. https://www.mbaskool.com/brandguide/food-and-beverages/558-diet-pepsi.html https://www.businessinsider.in/advertising/brands/article/how-pepsi-continues-to-stay-relevant-and-connect-with-every-generation/articleshow/81573612.cms https://www.statista.com/statistics/263264/top-companies-in-the-world-by-market-capitalization/ https://www.statista.com/statistics/1179261/leading-corporations-reputation-united-states/ https://research-methodology.net/pepsico-segmentation-targeting-and-positioning-2/. . Retrieved from http://www.pepsico.com/Company/Global-Business-Units. &vn{it).)).

However, the target market for juices, waters, and soda is anyone. PepsiCo owns the majority of their bottling plants, so the threat of their supplier having bargaining power is negligible. In a way, this success is not surprising, as the brand has been operational for well over a century. Legal requirements to disclose negative information on product labels: The world is always changing and as of late, a health oriented way of living is rapidly becoming the social norm in today society. For Pepsi to understand which products should be targeted, at which customers, they need to rate five criteria. During the COVID pandemic, overall soft drink consumption rose, with, saying they were consuming the same amount or more soft drinks than before. Along the years, the beverage company has attracted many customers by using marketing campaigns and by creating brand personality associated with adventure. This results in lost profits that look to continue as the U.S. dollar is projected to increase even more over the next few years. {KOEVB%=kU Lets take a closer look at who is Pepsis target market and how the caffeinated, carbonated, sugary beverage is faring in the cola war of the 21st century. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns.