Segmentation, Target Market

and Positioning for Pepsi

 Company Introduction:
• Pepsi is one of the worlds most favorite soft drink in cola flavor.
Pepsi is a carbonated drink that is developed by PepsiCo.

• The marketing campaigns of Pepsi are considered as level best

campaigns. Pepsi was first introduced as Brad drink in 1893 by
Caleb Braham.
• Pepsi have changed its logo throughout last decade or so. This is
mainly due to the effective STP means Segmentation, Targeting
and positioning strategies of Pepsi.
Logo transformation for Pepsi
 STP for Pepsi
• The process of the STP starts off with the segmentation.

• Segmentation is the process of converting the heterogenous

market into Homogenous market on the basis of common
characteristics (Baker, 2007).

• Segmentation is the process of converting broad target market

into small clusters on the basis of the common characteristics
they possess (Baker, 2007).
 Geographic Segmentation:
• Geographic segmentation is one of the most basic and important
type of the basis of segmentation. In this segmentation, division
of the target market is done on the basis of the Geographical
area like Country, City, Town and village Etc (Jobber, 2007).

• Pepsi effectively make use of this segmentation to derive

different marketing campaigns regarding different countries
around the world.
 Demographic segmentation
• Demographic segmentation divides the target market into
groups on the basis of the personal characteristics like Age, race,
gender, income and education etc (Jobber, 2007).
• This type of segmentation helps the organization to design
effective marketing campaigns for the target audience.

• With better insight of the customers personal characteristics.

Pepsi have developed different type of carbonated drinks like
Pepsi diet.
 Psychographic segmentation:
• Psychographic segmentation divides the target market into small
segments on the basis of the personality and the life style of the
customers (Jobber, 2007).

• Examples of personalities are introvert, extroverted , outgoing

and fun-loving etc.

• Examples of life styles include Survivors, achievers, strivers etc.

 Behavioral segmentation
• This is type of the segmentation that involves the segmentation
to be done on the basis of behavior of the customer regarding
the product. This behavioral variable includes the usage rate,
occasion, knowledge about the product etc (Jobber, 2007).

• This type of segmentation helps the company to make effective

strategies regarding different customers.
 Target Market selection
• Target market consist of a group of people who have similar
needs and interests.

• The target market selection is done on the basis of the best fit
philosophy means target market is selection on the best fit
between the market attractiveness and the capability of an
organization to serve the target market with the required
product and services.
 Positioning recommendations
• Positioning are the marketing efforts to get the required image in
the mind of the customer regarding the product and services.

• Organization must use positioning map is used to visualize the

brand position against the competitors.
• Positioning strategy is largely based on the information that an
organization got from the segmentation.
• Positioning should based on unique selling proposition.
 Continues………
• In order to make more compelling positioning statement,
organization should focus more on the brand promise.

• In positioning statement, there should be valid reason to believe

the brand that why customer should prefers that brand against
competitors.

• Positioning statement should include the concern for the

customer preferences.
 Customer Profile for Pepsi
• The target market of Pepsi consists of people of both genders
male and female.
• The age of the target market is from 15 to 45 years. Income level
average, above and also high earners and education is minimum
metric.

• The personality of Pepsi customers is outgoing and fun loving

and from lifestyle point of view they are achievers and survivors.
 Continues…….
• Following given is behavioral segment of Pepsi:
 Benefits sought: Refreshment, enjoying good taste, satisfaction
of a habit, spending time.
User status: Regular customer.
Loyalty status: Soft core loyal customer and hard core loyal
customer.
 References
• Baker, M. (2007). Marketing Strategy and Management. 4th ed.
Palgrave Macmillan.
• Dibb, S. and Simkin, L. (2009). Marketing essentials. Australia:
South-Western Cengage Learning.
• Hunt, S. (1976). The Nature and Scope of Marketing. Journal of
Marketing, 40(3).
• Jobber, D. (2007). Principles and Practice of Marketing. 5th ed.
London: McGraw-Hill Education.