PepsiCo’s Consumer profile

About the company

PepsiCo, Inc. is an American multinational food, snack, and beverage
corporation headquartered in Harrison, New York, in the hamlet of Purchase.
PepsiCo has interests in the manufacturing, marketing, and distribution of
grain-based snack foods, beverages, and other products. PepsiCo was formed
in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo
has since expanded from its namesake product Pepsi to a broader range of
food and beverage brands, the largest of which included an acquisition of
Tropicana Products in 1998 and the Quaker Oats Company in 2001, which
added the Gatorade brand to its portfolio.

PepsiCo’s primary customers include wholesale and other distributors,

foodservice customers, grocery stores, drug stores, convenience stores,
discount/dollar stores, mass merchandisers, membership stores and
authorized independent bottlers. Normally they grant our independent
bottlers exclusive contracts to sell and manufacture certain beverage products
bearing our trademarks within a specific geographic area. These arrangements
provide us with the right to charge our independent bottlers for concentrate,
finished goods and Aquafina royalties and specify the manufacturing process
required for product quality. We also grant distribution rights to our
independent bottlers for certain beverage products bearing our trademarks for
specified geographic areas.

CUSTOMER PROFILE: Strategy, Geographic, Demographic, Psychographic, and

Geographic
Pepsi Brands are divided into three sections: Pepsi Max (low-calorie), Diet
Pepsi, and Pepsi Next (60% less sugar) (Pepsi, 2014). In this way, Pepsi soda
takes the segmentation strategy of one product and multiple market
segments . However, it’s important to note that the parent company, PepsiCo
uses the multiple products and multiple markets strategy because PepsiCo
owns 22 brands that sell multiple products: snacks, juices, water, and oatmeal.

The analysis of this paper discusses the geographic region of the U.S. But
nonetheless, Pepsi geographically segments markets domestically and
internationally. Therefore, Pepsi appeal to both domestic and international
markets.

Pepsi primarily segments on the basis of demographics and psychographics.

Pepsi segments by the demographic sub-group variable of age when they
choose to influence younger audiences. The following sub-group variables
don’t apply to Pepsi’s segmentation: household size, marital status, income,
education, occupation, and income.

Pepsi uses psychographic segmentation when they appeal to the pop culture
aspect of society. This will be discussed in more detail in the communications
mix section. But nonetheless, appealing to pop culture relates to the following
segmentation variables: personality and values. Pepsi Max, appeals to the
psychographic segmentation variable needs since Pepsi Max is for consumers
who consider health a need.

PepsiCo's product mix as of 2015 (based on worldwide net revenue) consists of

53 percent foods, and 47 percent beverages. [49] On a worldwide basis, the
company's current products lines include several hundred brands that in 2009
were estimated to have generated approximately $108 billion in cumulative
annual retail sales.[48]
The primary identifier of a food and beverage industry main brand is annual
sales over $1 billion. As of 2015, 22 PepsiCo brands met that mark, including:
Pepsi, Diet Pepsi, Mountain Dew, Lay's, Gatorade, Tropicana, 7 Up, Doritos,
Brisk, Quaker Foods, Cheetos, Mirinda, Ruffles, Aquafina, Naked, Kevita,
Propel, Sobe, H2oh, Sabra, Starbucks (ready to Drink Beverages), Pepsi Max,
Tostitos, Sierra Mist, Fritos, and Walkers.
Targeting: Target Markets

Pepsi’s target market is 18-35 year olds Pepsi’s new outreach through
unconventional forms of marketing, like social media, is an effort to strengthen
the brand loyalty of the youth target market. There is no definitive preference
between males vs. female target markets. Pepsi embraces both.

Theses statistics explain why Pepsi is appealing to younger audiences because

the figures are larger for 18-24 year olds in comparison to 25-34 year olds.
PepsiCo uses a multi-segment type of positioning and thus, it always targets
more than one customer segment at the same time either with different
products or service packages. For example, Pepsi-Cola is positioned as a soft
drink that tastes nice and has a pleasantly refreshing impact. However, Pepsi-
Cola contains a significant amount of sugar, and thus not placed for customers
that are very cautious about the health implications of consuming carbonated
soft drinks. For this specific customer segment, PepsiCo offers Diet Pepsi,
which is positioned as a carbonated soft drink that contains less among of
sugar compared to Pepsi-Cola and other soft drinks.
Type of segmentation
Segmentation criteria
PepsiCo target segment
Geographic
Region
Domestic/international

Density
Urban/rural
Demographic
Age
12-45

Gender
Males & Females

Life-cycle stage
Bachelor Stage young, single people not living at home
Newly Married Couples young, no children

Income
Average, above average and high earners
Occupation
Students, employees, professionals
Behavioral
Degree of loyalty
‘Hardcore loyal and ‘Softcore loyal

Benefits sought
Refreshment, enjoying good taste, the satisfaction of a habit, spending time

Personality
Easygoing/determined/ambitious

User status
Regular users
Psychographic
Social class
Working class, middle class, and upper class

Lifestyle
Aspirer, Explorer
Some of the key findings include-
It mainly segments its market demographically which includes age, income and
family size. Pepsi's behavioural aspect of the segmentation has been a key to
the company's success. 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
People especially 40 plus. Pepsi mainly produces the Pepsi Cola. The primary
customer of Pepsi cola is young people whose age is 10 to 35. On an income
basis, Pepsi also segments their market by making the 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 at a different price for
different the people whose income is different. They think about the student,
poor people, and middle-class people economic condition for their pricing.
Family size basis is also a base segmentation for Pepsi. In our country, there
are many families with different family size. So Pepsi is served into many size
250ml, 500ml, 1L, 1.5L, 2L pack. People can easily choose a suitable package
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 vast amounts of money to compete with Coca-Cola in
acquiring contracts with universities to have sold representation of their
product distribution. Pepsi consumers are mostly teenagers and young adults
between the ages of 14 to 29.