S T P Pepsi
S T P Pepsi
S T P Pepsi
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. PepsiCos 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 cooperations 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.
PepsiCos 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 Segmentation
As 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 Marketing
Despite 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 Pepsis 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 Marketing
Pepsi 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 Pepsis 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.
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 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.