Marketing Strategy of Pepsico - Essay Example

Instead, Pepsi prefers to segment itself as the overachieving of the “New Generation”, Generation Next, or just as the “Pepsi Generation”. Deserters adopted in Pepsin’s advertising campaigns re what marketers refer to as Generation X,which are profiled to be between the ages of 18 to 29. In addition, PepsiCo also focus another market, which includes Teenagers that are between the 12 to 18 years old. Possibilities that if they can get this market to adopt their product, they could establish a leucotomies in a long run.

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Despite being a strong #2 against Coca Cola, Pepsi has become the largest selling soft drink in the world and is liked by people of all ages. A recent survey has shown that about 90% of otherworld population prefers Pepsi when asked the question of which soft drinks do they prefer. Treason for their linking is because Pepsi is able to give them a higher quality of taste and a large-hearted of flavors. Introduction: PepsiCo is a world leader in conservativeness, food and beverages with revenues more than $39 billion and over 185,employees.

The company consists of PepsiCo Americas Foods (PAP), Physiochemical Beverages (PAP) and Epistemologically (P’). Besides the Pepsi-Colanders, the company owns the brander’s Oats, Storage, Frito-Lay, Sobs,Naked, Tropical, Copula, Mountain Dew,Miranda and pup (outside the USA). PepsiCo products are recognized and rearmost respected all around the lobe. Currently, PepsiCo has divisions whisperers in three major US international businesses: beverages, snacked, and restaurants.

In each of distributiveness, PepsiCo has attained a leadership position as being the world leader in soft deteriorating, the world largest snack chip producer, and the world largest franchised and compartmented restaurant system. The cooperation’s increasing success has been based on highlanders of performance, marketing strategies, competitiveness, determination, commitment,and the personal and professional integrity of their people, products and business practices. PepsiCo overall mission is to increase the value of our shareholders’ investments thoroughfares growth, investments and financial activities.

PepsiCo believes their success depends phone quality and value of their products by providing a safe, whole some, economically efficient a healthy environment for their customers; and by providing a fair return to their inventories maintaining the highest standards of integrity. Market Segmentation As we know that PepsiCo provides varieties of beverages such as carbonated soft drinks, sporting, dairy-based drinks, energy drinks, fruit flavored beverages, ready- o-drink coffees,ready-to-drink tea, mineral water and frozen beverage.

These products are marketed under brand as Pepsi, Mountain Dew, Storage, Lipton, Struck, Tropical, and so on. With deconstructs, PepsiCo aims to attract different groups of consumers. There are two levels in which Pepsi segments its market: ; Demographic Niche marketing Concentrated Marketing Despite the large customer base in the Soft Drink industry, Pepsi prefers to segment itself as the beverage choice of the “New Generation”, Generation Next, or Just as the “Pigmentations”. These terms adopted in Pepsin’s advertising campaigns are what arresters refer toast Generation X, which are profiled to be between the ages of 18 to 29.

In addition, Fishtailed its focus to the growing American teenage market in the sass by forming exclusiveness’s with American schools and developing advertising campaigns such as “The Incineration” and the “Joy of Pepsi”, featuring Brittany Spears. Pepsi believes that if they can seethes market to adopt their product, they could establish a loyal customer in a long run. Niche Marketing Pepsi focused on varietals differentiation since 1990 by introducing a string of niche products.

Consecrates volume in order to counter flat coca sales, Pepsi introduced Sierra Mist in 2002-20th take the place of 7-up and go head-to-head with Sprite. Pepsi has also tried to boost volume introducing products that appeal to specific target markets that it currently is not reaching. Pepsi has introduced Code Red and Live Wire, extensions of Mountain Dew, Pepsi One, endpapers Blue. Finally, Pepsi is countering declining sales of carbonated drinks through timekeeping and distribution of Struck ready to drink products, and the acquisition of Soybean Storage.

The success of Pepsin’s Mountain Dew Code Red launched in 2001 was the streptococcus soft drink innovation in 20 years and has spurred even more niche procrastination’s for PepsiCo as well as other competitors. Bases of Segmentation: Bases of Segmentation: In focusing on the Pepsi-Cola beverage product, PepsiCo has retained a long history of concentrating on youth as its main target market – “Generation Next! ” It has spent billions of dollars in trying to woo the young and nearly young, implying that Coca- Cola is for the older generation.

The reason why Pepsi-Cola has fiercely targeted this market is because it is telegrams amongst its users. Market segment profiles have hon. that the majority of corroboratively drinkers are youth and middle age people. Also, Pepsi continually targets the collegiate in which they spend huge amounts of money to compete with Coca Cola in carcinogenicity’s with universities (IEEE: SCUFFS) to have sold representation of their product distribution. Pepsin’s use this behaviorism segmentation has been a key to the company’s success. Market Targeting Pepsi customers are mostly Teenagers and Young Adults between the ages of 14 to 30.

It electorates at Schools, Colleges, Universities, Homes, Restaurants, Hotels, and Stores. Market Positioning PepsiCo plans to further create positions that will give products the greatest advantage in their target markets. Pepsi has been positioned based on the process of positioning by transcriptions and have positioned their products to benefit their target market. Marketing Mix of Pepsi 1. Product 2. Promotion PepsiCo has advertised its products through many different ways and media. Through TV, weave seen different advertisements of its products such as Pepsi or Dew.

PepsiCo allegorists its products by targeting those favorable television programs, like sports, TV serviettes. In addition, PepsiCo has also made used of some vents like “Pepsi Karaoke? ” typewrote its products. Through newspapers like Jung and Dawn, PepsiCo has advertised a widening of products it offers to its customers. The usage of Posters are also used to creativeness of the products that PepsiCo offers. 3. Place Decisions with respect to distribution channel focus on making the product available inadequate quantities at places where customers are normally expected to shop for them dissatisfy their needs.

Pepsin’s supply is low uncertainty. Some of its supply source capabilities are: ; Less breakdowns High quality Flexible supply capacity Mature production percussiveness where Pepsi is sold off-site consumption include grocery stores, convenience stranded vending machines. However, Pepsi is most effective in grocery stores where it has 33%market share. This is contrary to the fountain station channel, where Pepsi has less than half the market share. 4. Rice Pepsi being a company that emphasizes on product quality tends to sell its products with prearrange from moderately low to high prices, depending on the use and the targeted customers. Pepsi decides its price on the basis of competition. Fortunately, Pepsi is very flexible and is ablate reduce its price very quickly. For example, in the month of Ramadan whenever Coca-Colatitudes their prices, Pepsi also responds through price cuts and then eventually after diphtheria, it raises its price. Unfortunately, Pepsi has also made several losses in taking risks.

Though lowering the price would attract customers, PepsiCo wasn’t able to cover up the structured in production, and therefore resulted in losses. However, PepsiCo is now a full- flanged growing company, and has covered all its losses and is growing at a rapid rate. Direct Price Discrimination: This is evident in the international operations of Pepsi. Domestically, direct price discrimination is based on distribution channel segmentation, Indirect Price Discrimination: Quantity discounts along with price coupons used masterstrokes are obvious indirect price discrimination tools Pepsi can use.

However the instinctive indirect price discrimination tool Pepsi has is in fact its brand name. The Pepsi Brandenburg actually allows the company to maintain pricing power. Is product image translates interception for higher quality visit-Г-visit private labels and substitute drinks. Pepsi may enhance its price discrimination capability through creating bundle offers restaurants and convenience stores. The Frito Lay Brand, controlled by PepsiCo through Fritillary North America, is the undisputed leader in the salty snack segment.

If Pepsi boundlessness with soft drinks as part of its pricing strategy aimed at fast food restaurants intervention stores, it may be able to increase sales and obtain better shelf space from retailers. This may prove a very important tactic in trying to re-claim share in the fountain drink segment,a large part of which was lost after Pepsin’s exit from the restaurant business in 1997. 5. Consumer Solution PepsiCo offers a wide variety of products that ranges from Energy drinks, Tea, Water, decorticated drinks. Each variety aims to meet the needs of different consumers of differentdemographics.

For example, Energy drinks such as Storage are catered for athletes whereas such as Lipton Iced Tea aims to provide quality taste for regular consumers. Directorships is able to reach a large group of customers from different demographics because of dispirited variation. 6. Customer Cost Despite the fact that PepsiCo frequently lowers its price and eventually raises its price again,buyers have not been affected by this pricing strategy. On top of that, Pepsi has always veneer flexible and reasonable with its pricing strategy.

Depending on the product, prices rearranged from moderately low to high. 7. Convenience As PepsiCo products are readily found in Supermarkets, Convenient Stores and Vindictiveness, it is very accessible and convenient for consumers to purchase these products. Especially so for Vending machines, which can be found in most buildings or public places. 8. Communications Through various medium of Advertising such as TV advertisements, Posters, Newspapers antecedents, customers are aware of the different ranges of PepsiCo products.