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Marketing Pepsico Essay

5112 words - 21 pages

Marketing In The Service Sector

FSSM 1001: Services Marketing 1

Nikolas Price

1691 words

Table of Contents
Introduction 3
PepsiCo International 3
Market segmentation 3
Niche Marketing 3
Bases Of segmentation 4
Target Market 4
Market Positioning 4
Analysis of the Macro and Micro Marketing Environments 5
Macro Marketing Environment (Refer To Appendix 1) 5
Micro Marketing Environment ( Refer to Appendix 2) 5
Conclusion 6
Appendix 1 7
Political 7
Economic 7
Social 7
Technological 7
Legal 8
Environmental 8
Appendix 2 9
References 13
Bibliography 13

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And in everything we do, we strive for honesty, fairness and integrity.” PepsiCo (2012)
Market segmentation
PepsiCo is a company which provides a vast variety in their product portfolio in the vast variety in there beverages such as the carbonated division, sports drinks, energy drinks, dairy based drinks, ready to drink Tea’s and Coffee’s. The company has branded these products into the very iconic brands we know as today, Pepsi, Mountain Dew, Gatorade, Starbucks, Lipton and also Tropicana. With such a vast range of products PepsiCo aims to attract different groups of consumers.
PepsiCo segments there market by the following:
• Demographic
• Niche marketing
Niche Marketing
PepsiCo has focused on differentiation on products since the 1990’s this is from there introduction of niche products. This move was to try to counter out the flat lining cola sales by diversifying their brand image. The first sign of this was from the introduction of Sierra mist (U.S.) and 7UP back in 2000 to rival Coca Colas brand of Sprite. The company has boosted its volume by creating product lines that appeal to specific markets they don’t target. This can be seen with the diversification in to more healthy brands such as Tropicana, Quaker, and PJ Smoothies. This is a new developing market the company is reaching into and capitalising on with their 2015 promises of becoming a healthier manufacturer.
The Niche marketing concept that PepsiCo has adopted has been shown in PepsiCo’s Mountain Dew code red launch in 2001 which was the most successful soft drink innovation in the industry in the last 20 years and has encouraged even more niche products for the company.

Bases Of segmentation
Table 1
AGE 14 – 30+
FAMILY SIZE 1-2, 3-4, 5+

PepsiCo has a very long history of marketing their products to the youth, as they are the main target market of their products and have been called “Generation Next!!” PepsiCo’s marketing department has spent billions in trying to appeal to the younger generations and to imply that Coca cola is for the older generation. This is because the younger market is the largest amongst the PepsiCo users so the company targets it and exploits it more than they would with older generation based consumers. Many market segment profiles show that the majority of carbonated beverage users are of young and middle aged profiles.
PepsiCo also targets the education sector mainly with colleges and universities. PepsiCo competes heavily with Coca Cola in this sector in getting the contracts from these...

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