Pepsi segments the market based on geographic, demographic, psychographic, and behavioral factors. Demographically, Pepsi targets younger people aged 14-30. Psychographically, they focus on the lower/upper middle class and target adventurous personalities with drinks like Mountain Dew. Pepsi uses differentiated and niche marketing strategies, launching various products like Code Red and Mountain Dew to meet different customer needs. Their positioning focuses on value with slogans like "More for less".

1. Market Segmentation,Market Segmentation,
Targeting, and PositioningTargeting, and Positioning
forfor
““A Marketing Plan for Pepsi”A Marketing Plan for Pepsi”

2. Bases for Segmenting ConsumerBases for Segmenting Consumer
MarketsMarkets
 There are various ways to segment a market.There are various ways to segment a market.
The major variables are;The major variables are;
 geographic segmentationgeographic segmentation
 demographic segmentationdemographic segmentation
 psychographic segmentationpsychographic segmentation
 behavioral segmentationbehavioral segmentation

3. Geographic SegmentationGeographic Segmentation
 Companies may divide the market intoCompanies may divide the market into
different geographic units such as nations,different geographic units such as nations,
countries, regions, cities…countries, regions, cities…

4. Demographic SegmentationDemographic Segmentation
 Companies divide the market into groups basedCompanies divide the market into groups based
on;on;
 Age and life-cycle:Age and life-cycle: needs and wants change withneeds and wants change with
age, that is why, a company may use differentage, that is why, a company may use different
marketing approaches for different age and life-cyclemarketing approaches for different age and life-cycle
groups. Pepsi are mainly targeted to the younggroups. Pepsi are mainly targeted to the young
people.people.

5. Gender:Gender: Coca Cola Light is targeted to women,Coca Cola Light is targeted to women,
whereas Pepsi Max is to men.whereas Pepsi Max is to men.
Which may included between the age of 14-30.Which may included between the age of 14-30.

6. Psychographic SegmentationPsychographic Segmentation
 Psychographic segmentation divides buyers intoPsychographic segmentation divides buyers into
different groups based on ;different groups based on ;
 Social ClassSocial Class
 LifestyleLifestyle
 PersonalityPersonality

7.  Their focusing towards lower and upper middle
class
 They have a product like “Mountain Dew” a
particular drink which is focused especially
adventurous personality.
 Their campaign of this drink totally focuses to
adventurous young people.

8. Behavioral SegmentationBehavioral Segmentation
 Companies may divide buyers into groups based onCompanies may divide buyers into groups based on
their knowledge, attitudes, uses to a product.their knowledge, attitudes, uses to a product.
 Occasions:Occasions:
buyers can be grouped according tobuyers can be grouped according to
occasions when they buy or use an item. Coca Cola &occasions when they buy or use an item. Coca Cola &
PepsiCo is for “Always”PepsiCo is for “Always”

10. Target marketing:Target marketing:
Pepsi customers are mostly teenagers and young adults between
the ages of 14 to 29.

11. Levels of Market SegmentsLevels of Market Segments
 There are three market-coverage strategies:There are three market-coverage strategies:
 Undifferentiated marketingUndifferentiated marketing
 Differentiated marketingDifferentiated marketing
 Niche marketingNiche marketing

12.  Undifferentiated marketing:Undifferentiated marketing:
make one product for all, e.g. Pepsi same price ,make one product for all, e.g. Pepsi same price ,
same taste and same color.same taste and same color.
 Differentiated marketing:Differentiated marketing:
create difference according to the needs,create difference according to the needs,
e.g. Pepsi different product launch in the markete.g. Pepsi different product launch in the market
according to the customer needs andaccording to the customer needs and
wants. Such aswants. Such as
Code Red, Pepsi one , Mountain Dew and act.Code Red, Pepsi one , Mountain Dew and act.
 Niche marketing:Niche marketing: The success of Pepsi’s Mountain
Dew , Code Red launched the market and most
successful soft drink innovation 20 years.

13. Positioning:Positioning:
 Pepsi follows winning value propositions like
“More for less”, “The same for less”. Pepsi has
its products from low price to high price.