S-T-P SEGMENTING TARGETING POSITIONING

Introduction: PepsiCo is a world leader in convenient snacks, food and beverages with revenues of more than $39 billion and over 185,000 employees. The company consists of Pep siCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB) and PepsiCo Internat ional (PI). Besides the Pepsi-Cola brands, the company owns the brands Quaker Oa ts, Gatorade, Frito-Lay, SoBe, Naked, Tropicana, Copella, Mountain Dew, Miranda and 7up. PepsiCo s products are recognized and are most respected all around the globe. Currently, PepsiCo has divisions which operates in three major US and int ernational businesses: beverages, snack foods, and restaurants. In each of these businesses, PepsiCo has attained a leadership position -as being the world lead er in soft drink bottling, -the world largest snack chip producer, -and the worl d largest franchised and company operated restaurant system.

 The cooperation s increasing success has been based on high standards of performa nce, marketing strategies, competitiveness, determination, commitment, and the p ersonal and professional integrity of their people, products and business practi ces. PepsiCo s overall mission is to increase the value of our shareholders inves tments through sales growth, investments and financial activities. PepsiCo belie ves their success depends upon the quality and value of their products by provid ing a safe, whole some, economically efficient and a healthy environment for the ir customers; and by providing a fair return to their investors while maintainin g the highest standards of integrity.

Market Segmentation As we know that PepsiCo provides varieties of beverages such as carbonated soft drinks, sport drinks, dairy-based drinks, energy drinks, fruit flavored beverage s, ready-to-drink coffees, ready-to-drink tea, mineral water and frozen beverage . These products are marketed under brand as Pepsi, Mountain Dew, Gatorade, Lipt on, Starbucks, Tropicana, and so on. With these products, PepsiCo aims to attrac t different groups of consumers. There are two levels in which Pepsi segments it s market: Demographic Niche marketing

Demographic Marketing Despite the large customer base in the Soft Drink industry, Pepsi prefers to seg ment itself as the beverage choice of the New Generation , Generation Next, or j ust as the Pepsi Generation . These terms adopted in Pepsi s advertising campaig ns are what marketers refer to as Generation X, which are profiled to be between the ages of 18 to 29. In addition, Pepsi shifted its focus to the growing teena ge market by forming exclusive contracts with schools and developing advertising campaigns such as The Next Generation and the Joy of Pepsi , featuring Celebrit ies. Pepsi believes that if they can get this market to adopt their product, the y could establish a loyal customer in a long run.

Niche Marketing Pepsi focused on varietal differentiation since 1990 by introducing a string of niche products. To increase volume in order to counter flat coca sales, Pepsi in troduced 7-up and go head-to-head with Sprite. Pepsi has also tried to boost vol ume by introducing products that appeal to specific target markets that it curre ntly is not reaching. Pepsi has introduced Mountain Dew, Pepsi One, and Pepsi Bl ue. The success of Pepsi s Mountain Dew launched in 2001 was the most successful soft drink innovation in 20 years and has spurred even more niche product intro ductions for PepsiCo as well as other competitors.

Basis for segmentation

Market Targeting Pepsi customers are mostly Teenagers and Young Adults between the ages of 14 to 3 0. It also targets Schools, Colleges, Universities, Homes, Restaurants, Hotels, a nd Stores

Market Positioning PepsiCo plans to further create positions that will give products the greatest a dvantage in their target markets. Pepsi has been positioned based on the process of positioning by direct comparison and have positioned their products to benef it their target market.