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PepsiCo Segmentation, Targeting and Positioning - Research-Methodology

PepsiCo segments the population into groups based on geographic, demographic, behavioral, and psychographic characteristics to target specific customer segments. PepsiCo targets multiple segments simultaneously with different product packages. For example, Pepsi is positioned as a refreshing soft drink while Diet Pepsi is positioned as containing less sugar for health-conscious consumers. The table illustrates PepsiCo's segmentation criteria and targeted segments.

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Er Sarangi
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546 views2 pages

PepsiCo Segmentation, Targeting and Positioning - Research-Methodology

PepsiCo segments the population into groups based on geographic, demographic, behavioral, and psychographic characteristics to target specific customer segments. PepsiCo targets multiple segments simultaneously with different product packages. For example, Pepsi is positioned as a refreshing soft drink while Diet Pepsi is positioned as containing less sugar for health-conscious consumers. The table illustrates PepsiCo's segmentation criteria and targeted segments.

Uploaded by

Er Sarangi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Theory of Spiritual Evolution

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 Search

PepsiCo Segmentation, Targeting and


Positioning
 By John Dudovskiy  May 9, 2016

PepsiCo segmentation, targeting and positioning decisions can be specified as the essence
of overall marketing efforts. Segmentation involves dividing population into groups according
to certain characteristics, whereas targeting implies choosing specific groups identified as a
result of segmentation to sell products. Positioning refers to the selection of the marketing
mix the most suitable for the target customer segment.

PepsiCo uses multi-segment type of positioning and accordingly, it targets more than one
customer segment at the same time with different products or service packages. For
example, Pepsi-Cola is positioned as soft drink that tastes good and has a pleasantly
refreshing impact. However, Pepsi-Cola contains a high amount of sugar and it is not positioned for customers that are
concerned about health implications of consuming carbonated soft drinks. For this specific customer segment PepsiCo
offers Diet Pepsi, which is positioned as a soft carbonated drink that contains less among of sugar compared to Pepsi-
Cola and other soft drinks.

The following table illustrates PepsiCo segmentation, targeting and positioning:

Type of Segmentation PepsiCo target segment


segmentation criteria

Geographic Region Domestic/international

Density Urban/rural

Demographic Age 15-45

Gender Males & Females

Life-cycle Bachelor Stage young, single people not living at home


stage
Newly Married Couples young, no children

Full Nest I youngest child under six

Full Nest II youngest child six or over

Income Average, above average and high earners

Occupation Students, employees, professionals

Behavioral Degree of ‘Hard core loyals’ and ‘Soft core loyals’


loyalty

/
Benefits sought Refreshment, enjoying good taste, satisfaction of a habit, spending time
User status Regular users

Psychographic Social class Working class, middle class and upper class

Lifestyle[1] Aspirer, Succeeder, Explorer

PepsiCo segmentation, targeting and positioning

It is important to specify that PepsiCo portfolio comprises 22 brands including Pepsi-Cola, Lay’s, Mountain Dew,
Gatorade, Tropicana and others[2], and the Table 2 above specifies PepsiCo target customer segment in general by
focusing on the common characteristics of positioning of brands within PepsiCo portfolio. There are some differences
among brands within PepsiCo portfolio in terms of their nutritional value, pricing, packaging etc. and these differences
impact the position of each individual brand.

PepsiCo Inc. Report constitutes a comprehensive analysis of marketing strategy and business strategy of PepsiCo. The
report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT,
PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on PepsiCo. Moreover, the report contains
analysis of PepsiCo’s leadership and organizational structure and discusses the issues of corporate social responsibility.

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