Pepsico Market Segmentation

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PepsiCo vs. Market Segmentation

Introduction
Pepsi-Cola was founded by a druggist, Caleb Bradham in year 1898 (Overview, 2008). He came from New Bern, North Carolina (Overview, 2008). In year 1965, Pepsi-Cola merged with Frito-Lay in a new company named PepsiCo (Overview, 2008). Then, PepsiCo merged with Tropicana in year 1998 and also Quaker Oats Company in year 2001 (Overview, 2008). Those mergers have been divided in categories such as food, beverage and snacks. Now, Pepsi Brand is part of a group of beverage brands which consists of carbonated soft drinks, mineral water, ready-to-drink teas and coffees, juices as well as isotonic sport drinks.

Market segmentation
Market segmentation is the process of dividing markets comprising the heterogeneous needs of many consumers into segments comprising the homogeneous needs of smaller groups (Guille M). Segmentation is usually done by demography, geography and socioeconomic variables. The easiest way to segment consumer market is to use demographic variables such as age, gender and education level. Organizations that operate globally usually segment consumer market geographically. Besides, socioeconomic variables are to segment the market regarding the income, social class and also lifestyle (Guille M).

Soft Drink – PepsiCo
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. Those products are marketed under brand as Pepsi, Mountain Dew, Gatorade, Lipton, Starbucks, Tropicana, and so on. Why PepsiCo have to produce so many types of products? The reason is relevant to market segmentation. PepsiCo aims to attract different groups of consumers with difference types of products.

Demography
Pepsi targets the young people since before until now because most of the teenagers and kids love sweetener beverages. In 1960,...
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