Segmentation and Target Market
Segmentation and Target Market The three major players in the soft drink market are PepsiCo, Inc., the Coca-Cola Company, and the Dr. Pepper Snapple Group (Change Lab Solutions, n.d.). All of them use effective market segmentation to target specific markets. Effective target marketing requires that marketers, segment the market, by identifying and profiling to find a distinct group of buyers who differ in their wants and needs (Kotler & Keller, 2012). They target their specific product to one or more market segments they have identified, and for each target segment establish and communicate the distinctive benefit of the company’s products to position themselves in the market. Coca-Cola and Pepsi-Cola retain the first and second position in the soft drink market. By identifying the characteristics of Pepsi’s target market, and how they segment, we may be able to identify why they retain the second position.
Market Segmentation and Target Markets
Geographic Segmentation Geographic segmentation can divide the market into larger and then smaller units. It can start with nations, states, regions, counties, cities, and finally neighborhoods (Kotler & Keller, 2012). Pepsi operates in all of these geographic segments; however, they do change tastes and packaging depending on the ethnic group or nation they are targeting. In Mexico, they sell cookies under the brand name Gamesa, chips and other snack foods are under the brand name Sabritas (PepsiCo, n.d.). PepsiCo’s global units are broken down into four segments; PepsiCo Americas Beverages, PepsiCo Americas Foods, PepsiCo Europe, and PepsiCo Asia, Middle East and Africa (PepsiCo, n.d.).
Demographic Segmentation Demographic segmentation divides the market by age, family size, family life cycle, gender, income, occupation, education, religion, generation, nationality, and social class (Kotler & Keller, 2012). PepsiCo is one of the largest food and beverage companies in the world. Areas of growing
Market Segmentation and Target Markets
Geographic Segmentation Geographic segmentation can divide the market into larger and then smaller units. It can start with nations, states, regions, counties, cities, and finally neighborhoods (Kotler & Keller, 2012). Pepsi operates in all of these geographic segments; however, they do change tastes and packaging depending on the ethnic group or nation they are targeting. In Mexico, they sell cookies under the brand name Gamesa, chips and other snack foods are under the brand name Sabritas (PepsiCo, n.d.). PepsiCo’s global units are broken down into four segments; PepsiCo Americas Beverages, PepsiCo Americas Foods, PepsiCo Europe, and PepsiCo Asia, Middle East and Africa (PepsiCo, n.d.).
Demographic Segmentation Demographic segmentation divides the market by age, family size, family life cycle, gender, income, occupation, education, religion, generation, nationality, and social class (Kotler & Keller, 2012). PepsiCo is one of the largest food and beverage companies in the world. Areas of growing
References: Change Lab Solutions. (n.d.). Breaking Down the Chain: A Guide to the Soft Drink Industry. Retrieved from http://changelabsolutions.org/sites/default/files/ChangeLab-Beverage_Industry_Report-FINAL_(CLS-20120530)_201109.pdf Forbes. (2014). PepsiCo Earnings Preview: Soft Drinks To Underperform Once Again. Retrieved from http://www.forbes.com/sites/greatspeculations/2014/04/15/pepsico-earnings-preview-soft-drinks-to-underperform-once-again/2/ Kotler, P., & Keller, K. L. (2012). Marketing management (14th ed.). Upper Saddle River, NJ: Pearson Prentice Hall. PepsiCo. (n.d.). Advertising. Retrieved from http://www.pepsico.com/Purpose/Human-Sustainability/Responsible-Marketing PepsiCo. (n.d.). Global Business Units. Retrieved from http://www.pepsico.com/Company/Global-Business-Units