Marketing Strategy of Pepsico

Topics: Marketing, PepsiCo, Soft drink Pages: 8 (1764 words) Published: October 11, 2014

Executive Summary
This report provides an analysis and evaluation of the Marketing Strategy of PepsiCo. Methodsof analysis include Market Segmentation, Market Targeting, Market Positioning, as well as theMarketing Mix of PepsiCo .

The research draws attention to the Market Segmentation of PepsiCo. While the soft drinkindustry has probably the widest and deepest customer base in the world, Pepsi did not use themajority fallacy to market their product. Instead, Pepsi prefers to segment itself as the beveragechoice of the “New Generation”, Generation Next, or just as the “Pepsi Generation”. Theseterms 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, PepsiCo also focus onanother market, which includes Teenagers that are between the 12 to 18 years old. Pepsibelieves that if they can get this market to adopt their product, they could establish a loyalcustomer in a long run.Despite being a strong #2 against Coca Cola, Pepsi has become the largest selling soft drink inthe world and is liked by people of all ages. A recent survey has shown that about 90% of theworld population prefers Pepsi when asked the question of which soft drinks do they prefer. Thereason for their linking is because Pepsi is able to give them a higher quality of taste and a largevariety of flavors.

PepsiCo is a world leader in convenientsnacks, food and beverages with revenuesof more than $39 billion and over 185,000employees. The company consists of PepsiCo Americas Foods (PAF), PepsiCoAmericas Beverages (PAB) and PepsiCoInternational (PI). Besides the Pepsi-Colabrands, the company owns the brandsQuaker Oats, Gatorade, Frito-Lay, SoBe,Naked, Tropicana, Copella, Mountain Dew,Mirinda and 7up (outside the USA).  

PepsiCo’s products are recognized and aremost respected all around the globe.Currently, PepsiCo has divisions whichoperates in three major US andinternational businesses: beverages, snackfoods, and restaurants. In each of thesebusinesses, PepsiCo has attained a leadership position as being the world leader in soft drinkbottling, the world largest snack chip producer, and the world largest franchised and companyoperated restaurant system. The cooperation’s increasing success has been based on highstandards 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 throughsales growth, investments and financial activities. PepsiCo believes their success depends uponthe quality and value of their products by providing a safe, whole some, economically efficientand a healthy environment for their customers; and by providing a fair return to their investorswhile maintaining the highest standards of integrity.

Market Segmentation
As we know that PepsiCo provides varieties of beverages such as carbonated soft drinks, sportdrinks, 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 theseproducts, PepsiCo aims to attract different groups of consumers.There are two levels in which Pepsi segments its market: •


Niche marketing
Concentrated Marketing
Despite the large customer base in the Soft Drink industry, Pepsi prefers to segment itself asthe beverage choice of the “New Generation”, Generation Next, or just as the “PepsiGeneration”. These terms adopted in Pepsi’s advertising campaigns are what marketers refer toas Generation X, which are profiled to be between the ages of 18 to 29. In addition, Pepsishifted its focus to the growing American teenage market in the 1990s by forming exclusivecontracts with...
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