Business model canvas

Businessmodel canvas

Duedate

PartI: Customer segments block

PepsiCoemploys the use of a multi-segment mode of positioning as it targetsmultiple consumer segments at the same time with its differentproducts and services. Its products are manufactured in a way to suitevery group of people (Bachmeier, 2013). The company incorporatesthree modes of segmentation to subdivide its consumers as summarizedin the table below.

Mode of segmentation

Grouping criterion

Target segments

Geographic

Region

Both domestic and international

Density

Urban and rural

Demographic

Age

16 to 45 years

Gender

Both male and female

Income

Average and high-income earners

Employment

Students, employed and self-employed

Behavioural

Personality

Easy going, unwavering and zealous

consumer status

Regular customers

Psychographic

Economic class

Both middle and upper classes

Living style

Aspirer, winner and adventurous

Source:(Thomas 2016)

PepsiCofocuses on reaching a diversified market. This is because thecorporation serves multiple customer segments with different wantsand attributes (Osterwalder,2008). Forinstance, the Pepsi cola drink has very high amounts of sugar andrefreshing taste. Nonetheless, it is not meant to serve those thatcare about the health implications of sweetened beverages. For thisconsumer segment, the company offers Diet Pepsi.

Identificationof customer segments will drive the company into establishingdecisions on the other components of the business model. Forinstance, segmenting the consumers will make it possible to decide onthe value proposition. This refers to the bundles and of goods andservices that will invent value to the consumers. The example ofPepsi-Cola and Pepsi diet above is a perfect example. One similarline, it will help the company to determine the rightful channels toreach the particular customer and the best relationships toestablish.

References

Bachmeier,K. (2013). Analysisof marketing strategies used by PepsiCo.Chichester: Grin Verlag.

Osterwalder,A. (2008). Business Model Canvas Explained.Retrieved from June 26, 2013,http://www.youtube.com/watch?v=NnQrQD991hY

Thomas,J. (2016). MarketSegmentation(1st Ed.). Dallas-Fort Worth. Retrieved fromhttp://www.decisionanalyst.com/publ_art/marketsegmentation.dai

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