PepsiCo’sproducts are suitable for any group of people as long as they are nottaken in large amounts. Nonetheless, the company has a particulartarget group within the beverage market. It focuses on serving theyoung generation at the age of 16 to 35 years. Both male and femalepersons within this age bracket fall in the target group. The companyhas an unequivocal interest in the youth who are college educated orhave a graduate or a post graduate degree and live in urban areas.They should also lie within the middle and upper social classes. Thisis because they are most active groups and take much of their timeexercising which is of paramount importance to users of carbonatedbeverages.
PepsiCoserves over two million youths across the globe. It is the secondbest-selling corporation after the Coca-Cola Company. The company hasused various aspects to segment its target customers which includedemographic, psychographic and behavioral attributes. Based ondemographic features such as age, gender, marital status and income,the company sells to youths of age between 16-35 years both male andfemale with income above $500. Both married and single fit in and thesize of the family has no limit. In connection with psychographicfeatures, PepsiCo concentrates youths lying within the middle andupper economic classes. Each of the social class carries about halfof the total number of youths in the market. Behavioral segmentationsubdivides the target market based on affinity for partying, sportsand loyalty. About three-quarters of the target group lie within thissubset (Bachmeier, 2013).
Thereis a 100 percent likelihood that the analysis has honed on the rightcustomer segment. This is because based on the current consumer data,a significant percentage of PepsiCo’s clients are the youths. Also,based marketing trends, there has been a rise in demand forcarbonated drinks among the young people while it is on the declinefor other groups of individuals within the market. There is also anopportunity to extend PepsiCo`s geographical reach and tap moreyouths than any other category within the market.
Bachmeier,K. (2013). Analysisof marketing strategies used by PepsiCo.Munich: Grin Verlag.