Pepsi Target Market Analysis: Audience Segmentation & Marketing Strategy for 2022

Overview of PepsiCo

• Company Profile: PepsiCo is a major global brand, part of the ongoing "Cola Wars" with Coca-Cola.
• Company Value: As of 2022, market capitalization is over $238 billion.
• Reputation: Ranked 20th by reputation among U.S. corporations in 2021.
• Revenue Growth:
  • 2021 revenue was $79.47 billion, up from $70.37 billion in 2020.
  • Pepsi Cola is the second most sold carbonated soft drink in the U.S.

Pepsi's Target Market

• Core Demographic:
  • Teens, young adults, and early middle-age adults.
  • Consumers aged 15-45, both male and female.
  • Focus on singles, new marrieds, and families with younger children.
• Geographic Reach:
  • Available in over 200 countries.
  • Withdrawn from the Russian market in 2022.
• Behavioral Segmentation:
  • Average to high income earners including students and professionals.
  • Frequent purchasers in grocery stores, big box stores, convenience stores, and vending machines.
• Psychographic Segmentation:
  • Targets working, middle, and upper-class consumers.
  • Appeals to determined and ambitious personalities.

Pepsi's Competitors

• Major Competitors: Coca-Cola, Dr Pepper Snapple, and Red Bull.
• Market Dynamics:
  • Coca-Cola dominates with products like Sprite, Fanta, and various energy drinks.
  • Cola flavors dominate over 50% of market volume in carbonated soft drinks.

Competitive Strategy Against Coca-Cola

• Product Innovation: Regular updates and expansions of product lines.
  • Products include Diet Pepsi, Pepsi Max, and newer offerings like Nitro Pepsi.
• Historical Context:
  • The "Pepsi Challenge" famous marketing campaign from the 1980s.
  • Continuous rivalry in sugar-free cola market share.

Marketing Strategy

• Advertising Budget:
  • In 2020, PepsiCo spent $143 million on advertising in the U.S.
• Major Campaigns:
  • Celebrity endorsements and sponsorships of events like the NFL Super Bowl Halftime Show.
  • Introduced Nitro Pepsi to capitalize on market innovation.

FAQs

Target Market for Diet Pepsi

• Broad age range focus, health-conscious individuals seeking sugar-free options.

Success of Pepsi Advertising

• Focuses on pop culture, maintaining a cool edge through celebrity and event associations.

Unique Selling Points of Pepsi

• Long-standing competitor in the Cola Wars.
• Continuous evolution with bold branding and new product innovations.