Scribd
Upload
9 views3 pages

Jona

The document compares Coca-Cola and PepsiCo's strategies for targeting different customer segments, highlighting their demographic, geographic, psychographic, and behavioral segmentation approaches. Coca-Cola focuses on emotional advertising and brand loyalty, while PepsiCo emphasizes youth culture and innovative marketing tactics. Both companies aim to connect with their target audiences, with Coca-Cola needing to enhance digital engagement with Gen Z and PepsiCo needing to improve long-term customer retention.

Uploaded by

jjjjj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
9 views3 pages

Jona

The document compares Coca-Cola and PepsiCo's strategies for targeting different customer segments, highlighting their demographic, geographic, psychographic, and behavioral segmentation approaches. Coca-Cola focuses on emotional advertising and brand loyalty, while PepsiCo emphasizes youth culture and innovative marketing tactics. Both companies aim to connect with their target audiences, with Coca-Cola needing to enhance digital engagement with Gen Z and PepsiCo needing to improve long-term customer retention.

Uploaded by

jjjjj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Comparing Company Strategies for Targeting Different Customer Segments

Market segmentation is a practice rendered useful when a large consumer market or business
market is divided into smaller sub-markets consisting of people sharing common characteristics.
As such, it allows firms to satisfy the needs of various consumers and thus gain competitive
advantage; it also enables brands to use their marketing resources on the most profitable
segments.

Company Profiles

Coca-Cola is a beverage company widely recognized the world over, with its most famous
product being Coca-Cola and others in its portfolio being Sprite, Fanta, and Minute Maid.

PepsiCo is yet another leading global player in the arena of beverage and food, producing such
products as Pepsi, Mountain Dew, and Lay's.Segmentation Strategies

Segmentation
Coca-Cola PepsiCo
Type

Targets all ages but focuses on youth Focuses on younger generations, urban
Demographic and families; diverse product line for millennials, and Gen Z; appeals to
different income groups middle-income consumers

Available worldwide; offers region- Global presence with flavors tailored


Geographic
specific flavors for specific countries or cultures

Promotes happiness, enjoyment, and Emphasizes youth culture, energy, fun,


Psychographic
shared moments and adventure

Targets impulsive purchases and social


Focuses on brand loyalty, daily
Behavioral gatherings, promotes variety-seeking
refreshment, and special occasions
behavior

Target Customers

• Coca-Cola pts: Young Adults, Families, and Professionals who enjoy the Miracle drink-the
classic Refreshing drink. Along with the health-conscious audience (Coca-Cola Zero), the
product is targeted at regular soda lovers.
• PepsiCo: Young and energetic people who looked at an age group mainly to rely on the
'Millennials or Gen Z'- considering them as the target group: all young adults. Fun flavors and
innovation in the products will enrich the brand experience.

Marketing Strategies

• Coca-Cola:

o Emotional advertising where much has been spoken of happiness and togetherness (like ''Taste
The Feeling'')

o Seasonal Advertising Christmas trucks, personalized bottles

o A strong presence in sponsorship like the Olympiad and Fifa.

o Maintaining a very consistent brand colour with the iconic logo.

• PepsiCo:

o Celebrity endorsements (for example Partnership with pop stars and athletes).

o Campaigning on boldness and youthfulness (as The Pepsi Challenge).

o Digital marketing, social media engagement, and viral content.

o Frequent product innovations and limited offerings.

Assessment of Effectiveness

As a leader in the soft drink industry, Coca-Cola captures the larger market share and attracts
more brand loyalists. This is attributed to strong emotional connection built up over the years
with the consumers. While PepsiCo has been effective in making the younger markets entice
with bold, creative campaigns, Pepsi is better known for the short Oh-My-Goodness effect and
social media whizz-kid.

Coca-Cola and PepsiCo share a common ground in the segmentation and targeting of the
respective customers. Indeed, Coca-Cola is built on an unwavering emotional appeal, while
PepsiCo rides on innovativeness and youth-focused marketing. As for constructive
improvements, Coca-Cola should work to enhance connectivity among Gen Z digitally, while
PepsiCo should work toward long-term customer retention improvement.

Reference:

Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Pearson.

PepsiCo. (2023). PepsiCo annual report 2023. PepsiCo, Inc.


https://www.pepsico.com/investors/financial-information/annual-reports

The Coca-Cola Company. (2023). Business & sustainability report 2023. The Coca-Cola
Company.
https://www.coca-colacompany.com/reports/business-and-sustainability-report-2023

You might also like