What is pepsicos approach to target marketing

This element of the marketing mix identifies the organizational outputs made available to customers. The following are the current product lines of PepsiCo:. For example, snack products were added after PepsiCo acquired Frito-Lay. Other merchandise includes tumblers and t-shirts, which are manufactured by other companies with license from PepsiCo.

PepsiCo uses a global network for distributing its products to consumers. Venues for distribution and sale are considered in this element of the marketing mix. Most PepsiCo products are available at retailers, such as supermarkets, grocery stores, and convenience stores. However, customers can access PepsiCo-licensed merchandise like tumblers and t-shirts through retailers and their websites. In every occasion Pepsi brings special offers. Like, they reduce the price; give extra quantity of drinks in the same price thus they follow the three winning value proposition.

It depends on market situation and competitor that what strategy they will follow. Drinks may be sold in mass chain stores, such as Wal-Mart, and in an array of other retail stores, such as drug stores, grocery stores, and corner stores or bodegas. Distribution is the key to getting the product in front of consumers, so place is a very important part of the overall sales equation.

In the case of Pepsi, marketing is international and takes place in every form of mass media - including television ads, print ads, and online marketing.

Pepsi, mainly segment their market demographically assuming age, income and family size. Age is one of the most significant parts of the segmentation of Pepsi. Pepsi introduces Pepsi diet for the people who are suffering from diabetic and for those who are likely to avoid sugar and for the aged 8. Pepsi mainly produces the Pepsi cola the main customer of Pepsi cola is young people whose age is 10 to On income basis Pepsi also segment their market by making little pack.

They offer a competitive price range to all class of people. They consider the economic situation in our country. So they introduce Pepsi in different price for different the people whose income is different. They think about student, poor people, and middle class people economic condition for their pricing.

Family size basis is also a base segmentation for Pepsi. In our society, there are many families with different family size. So Pepsi is served into many size ml, ml, 1L, 1.

People can easily choose a suitable pack based on their family size. Target Marketing: The reason why Pepsi-Cola has fiercely targeted this market is because it is the largest among its users. Market segment profiles have shown that the majority of carbonated beverage drinkers are youth and middle age people. Pepsi continually targets the Schools, Colleges, Universities, restaurants, hotels, and fast food Stores. For this they always spend huge amounts of money to compete with Coca Cola in acquiring contracts with universities to have sold representation of their product distribution.

Pepsi customers are mostly teenagers and young adults between the ages of 14 to They always more focus more on quantity but less focus on quality. They produce a huge amount of product, So that the cost of the production decreases.

They always highlight their target markets needs and make sure that the product is available and highly affordable for them. Customers: Pepsi customers are mostly young group between the ages of 14 to Macro environment for Pepsi: Demographic Environment: In the demographic environment, marketers must be aware of worldwide population growth; changing mixes of age; ethnic composition, and educational levels; the rise of nontraditional families; large geographic shifts in population; and the move to micromarketing and away from mass marketing.

A growing population does not mean growing markets unless these markets have sufficient purchasing power. Nonetheless, companies that carefully analyze their markets can find major opportunities. Countries also vary in ethnic and racial makeup. At one extreme is Japan, where almost everyone is Japanese; at the other is the United States, where people from come virtually all nations.

Each group has certain specific wants and buying habits. Several food, clothing, and furniture companies have directed their Pepsi is the product which makes a balance demographic environment.

Economic Environment: Markets require purchasing power as well as people. The available purchasing power in an economy depends on current income, prices, savings, debt, and credit availability. Marketers must pay close attention to major trends in income and consumer-spending patterns.

Marketers often distinguish countries with five different income-distribution patterns: 1 very low incomes; 2 mostly low incomes; 3 very low, very high incomes; 4 low, medium, high incomes; and 5 mostly medium incomes. Marketers must pay careful attention to major changes in incomes, cost of living, interest rates, savings, and borrowing patterns because they have a strong impact on business and PepsiCo is always aware of economic environment for Pepsi.

Natural Environment: In the natural environment, marketers need to be aware of raw materials shortages, increased energy costs and pollution levels, and the changing role of governments in environmental protection. The earth's raw materials consist of the infinite, the finite renewable, and the finite nonrenewable. Infinite resources, such as air and water, are becoming a problem such as water shortages.

Finite renewable resources, such as forests and food, must be used wisely. Forestry companies are required to reforest timberlands in order to protect the soil and to ensure sufficient wood to meet future demand. Finite nonrenewable resources - oil, coal, platinum, zinc and silver will pose a serious problem as the point of depletion approaches. Dramatic rise in oil prices can also create a renewed search for alternative energy forms.

Some industrial activity will inevitably damage the natural environment. About 42 percent of U. This creates a large market for pollution-control solutions, such as scrubbers, recycling centers, and landfill systems. Governments vary in Many poor nations are doing little about pollution, largely because they lack the funds or the political will.

For Pepsi-Cola, the packaging of Pepsi is closely related to the natural environment. So they always try to make the packaging of Pepsi in recycling format. Technological Environment: This is one of the most dramatic forces shaping people's lives. The economy's growth rate is affected by how many major new technologies are discovered. New technology also creates major long-run consequences that are not always foreseeable.

Therefore, the marketer should monitor the following trends in technology: the pace of change, the opportunities for innovation and increased regulation. Many of today's common products were not available 40 years ago. An increasing number of ideas are being worked on and the time between the appearance of new ideas and their successful implementation is all but disappearing.

So is the time between introduction and peak production. Scientist today is working on a startling range of new technologies that will revolutionize products and production processes. Some of the most exciting work is being done in biotechnology, computers and telecommunications. Many companies are content to put their money into copying competitors' products and making minor feature and style improvements. As products become more complex, the public needs to be assured of their safety.

Consequently, government agencies' powers to investigate and ban potentially unsafe products have been expanded. However their innovation level is not so high but PepsiCo always try to make new innovation in Pepsi.

Political-Legal Environment: Marketers must work within the many laws regulating business practices and with various special-interest Business legislation has three main purposes: to protect companies from unfair competition, to protect consumers from unfair business practices and to protect the interests of society from unbridled business behavior.

The laws are not always administered fairly; regulators and enforcers may be lax or overzealous. Marketers must have a good working knowledge of the major law protecting competition, consumers and society. As more business takes place in cyberspace marketers must establish new parameters for doing electronic business ethically. Many companies have established public affairs departments to deal with these groups and issues.

An important force affecting business is the consumerist movement - an organized movement of citizens and government to strengthen the rights and powers of buyers in relation to sellers. The company monitors the political environment of the many foreign nations in which Pepsi is sold. Social-cultural Environment: In the social-cultural arena, marketers must understand people's views of themselves, others, organizations, society, nature and the universe.

They must market products that correspond to society's core and secondary values and address the needs of different subcultures within a society. People living in a particular society hold many core beliefs and values that tend to persist. Secondary beliefs and values are more open to change.

Therefore, marketers have some chance of changing secondary values but little of changing core values. Each society contains subcultures. To the extent that sub cultural groups exhibit different wants and consumption behavior, marketers can choose particular subcultures as target markets.

Although core values are fairly persistent, cultural swings do take place. Today, young people are influenced by new heroes and new activities: Tiger Woods, and extreme sports. It must also continue to monitor the cultural environments of the other countries in which it does business of Pepsi.

Market Segmentation As we know that Pepsi is provided among a huge population which is called market. To distribute it and increasing the revenue the market should be segmented. Pepsi has put little emphasis to segment their market geographically.

They are doing business almost in maximum places around the world. Pepsi believes that if they can get this market to adopt their product, they could establish a loyal customer in a long run.

Psychographic segmentation: Psychographic segmentation divides buyers into different groups based on social class, lifestyle or personality characteristics. People from same demographic group can have very different psychographic makeups. Their beverages are very much focusing towards lower and upper middle class as they can afford to drink Pepsi. 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:.