Introduction of PepsiCo

PepsiCo is an American multinational beverages and food corporation which

has an interest in manufacturing, marketing and distribution of beverages, snack
foods and other products. In 1965, Donald Kendall ( The CEO of Pepsi-Cola ) and
Herman Lay( The CEO of Frito-Lay) recognized what they called “ A marriage
made in heaven ” a single company delivering perfectly-salty snacks served
alongside the best cola on earth. Their vision led to what quickly became of the
world's leading one food and beverage companies: PepsiCo. PepsiCo has since
expanded from its namesake product Pepsi to a broader range of food and beverage
brands, the largest of which include an acquisition of Tropicana in 1998
and a merger with Quaker Oats in 2001, which added the Gatorade brand to its
portfolio.
PepsiCo’s mission statement is formulated as “ To provide consumers around
the world with delicious, affordable, convenient and complementary foods and
beverages from wholesome breakfasts to healthy and fun daytime snacks and
beverages to evening treats. ”
As of January 2012, 22 of PepsiCo's product lines generated retail sales of
more than $1 billion each, and the company's products were distributed across
more than 200 countries, resulting inannual net revenues of $43.3 billion. Based on
net revenue, PepsiCo is the second largest food & beverage business in the world.
Within North America, PepsiCo is ranked ( by net revenue ) as the largest food and
beverage business.
Shareholders and employees can understand that PepsiCo is committed in the
long run as it is in the short run. Customers and communities have the ability to
select its products from a wider portfolio by the year 2030. Thus keeping all its
stakeholders highly satisfied and motivated.
 How PepsiCo segments its markets ?

Market segmentation is the process of dividing markets comprising the

heterogeneous needs of many consumers into segments comprising the
homogeneous needs of smaller groups. Segmentation is usually done by
geography, demography 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 consumber market

geographically. Besides, socioeconomic variables are to segment the market,
regarding the income, social class and also lifestyle. 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, Lipton, Starbukcs, Tropicana and
so on. Why PepsiCo have to produce so many type of products ? The reason is
relevant to market segmentation. PepsiCo aims to attract different groups of
consmers with difference types of products.

 Geographic Segmentation:
Geographic segmentation calls for dividing the market into different
geographical units, such as nations, regions, states, counties, cities, or even
neighborhoods. PepsiCo has put little emphasis to segment their market
geographically. They are doing business almost in maximum places around the
world. Nearly all European countries and North America’s beverage industry ruled
by Pepsi. Developing countries in Asia and Africa too is influenced by it . In South
Asia, it is one of the two most popular soft drinks.
However, they are focusing their market and attention towards the urban areas
and in the hot days because people are willing to getting a good reasonable drink;
therefore, it gives them pleasure and reduces their thirst. They have their dealers in
different places in the urban areas to capture the market in order to find and satisfy
their customers.
  Demographic Segmentation:
Demography PepsiCo targets the young people since before until now
because most of the teenagers and kids love sweetener beverages. The company
focuses their market and segments their market up to the age from 5 years to age
45 ( For Every Genders ) , because people above 45 are hesitant of drinkink due to
its coolness and its sugar factors. People in between the age 5 to 45 are usually
attracted towards the drink. To support this, they are also having some advertising
campaingns such as “ The Next Generation ” featuring Britney Spears or signed
spokeperson contract with Michael Jackson at 5 milion dollar. Those are success
campaign strategy by using celebrities to advertise the products in order to attract
young consumers and establish loyal customer in a long run. Besides, with the
affoldable price, PepsiCo is suitable for every kinds of income ( Average, Above
Average and High Earners ).
The company also made area wise segmentation and usually moves towards
college, cinemas, restaurants, hotels, where having students, young employees and
even professional. Moreover, PepsiCo also concentrates on different Life-Cycle
Stage such as Banchelor Stage young, single people not living at home or newly
married couples without children.

 Psychographic Segmentation:
The company also segments its market with respect to social class, lifestyles
and personalities, they focuses their attention towards lower upper and middle
class because those are people afford to drink. The main customer of PepsiCo is
young generation who are dynamic, creative and extrovert. For instance, they have
product like “ Mountain Dew ” – a particular drink which is focused esspacially
who has adventurous personality. Their campaingn of this drink totally
concentrates on adventurous young people.
Moreover, there are various products that appropiate with different
characteristic such as Mirinda is for Girl drink, Tropicana is for health conscious
customer and Pepsi is for “Young People”.

 Behavioral Segmentation:
Behavioral segmentation divides buyers into segments based on their
knowledge, attitudes, uses, or responses to a product. In this segment, PepsiCo has
been concentrating carefully. Because they offer in every special occasions, for the
people who seek for benefits off their products, to their loyal customer base.
Occasional cases like festivals, sport events; special days like any individual’s
birthday, marriage ceremony or anniversary. In other word, in every special
occasions there are people to whom buying Pepsi/Cola for celebration is a must.
PepsiCo also consider towards the Brand loyal people or the people who are heavy
user of Pepsi Cola.

References

1. Ahmed Ahmed. (2021), “Marketing situation analysis on PepsiCo”| Academia.edu.

https://www.academia.edu/19587850/Marketing_situation_analysis_on_PepsiCo

2. John Dudovskiy, (9/5/2016), “PepsiCo Segmentation, Targeting and Positioning” | Business

Research Methodology.
https://research-methodology.net/pepsico-segmentation-targeting-and-positioning-2/
3. Karan Shoor. (19/8/2013), “Introduction PepsiCo” | Scribd.
https://www.scribd.com/document/161397035/Introduction-Pepsico
4. PepsiCo, Inc. Official Website, “About the Company”.
https://www.pepsico.com/about/about-the-company
5. Bartleby.com. “Vision Introduction to PepsiCo”
https://www.bartleby.com/essay/Vision-Introduction-To-Pepsico-FCS844N626
6. Sirisha Bhogaraju. (12/12/2019), “Understanding PepsiCo’s Business Segments and More”
| Market Realist.
https://marketrealist.com/2014/12/understanding-pepsicos-segments/
7. M.A. Benjamin Pommer. (2014), “Market definition and analysis of Pepsi-Cola” | GRIN
Verlag.
https://www.grin.com/document/279083