Customers: Pepsi customers are mostly young group between the ages of 14 to 30. In year 1965, Pepsi-Cola merged with Frito-Lay in a new company named PepsiCo Overview, 2008. Pepsi believes that if they can get this market to adopt their product, they could establish a loyal customer in a long run. In the case of Pepsi, it only focuses on the demand of the product and try to improve it. Generation X has been a difficult generation to market to as they are characterized by a deep sense of self and have never given in to any attempts to categorize them. For a company manufacturing convenience goods, the demographics of customers will more or less remain consistent and hence the company can be consistent with its offering, marketing communication and branding.
Finite renewable resources, such as forests and food, must be used wisely. About 42 percent of U. Disadvantages of Demographic Segmentation One of the main disadvantages of demographic segmentation is it can make an organization vulnerable to competitors. Nowadays, competition in the market tend to increase, the customer also change their lifestyle and buying behavior become increasingly changed, then using only one tool for marketing communication is not enough. Distribution, Market segmentation, Marketing 657 Words 3 Pages Marketing Prepared by Devi B30611231 5th April 2004 Kensington Institute Indonesia Market Segmentation is the process of dividing a market into direct groups of buyers who might require separate products or marketing mixes.
It is more than that. This strategy is used successfully for products such as cars, clothes, home furnishings and leisure activities. Even health brands of beverages, such as Odwalla, fall under the umbrella of Coke. Demographic Segmentation Based on Gender A common parameter for demographic segmentation, gender is considered by a vast majority of businesses as a primary consideration for demographic segmentation. Market segmentation, Marketing, Product differentiation 1218 Words 4 Pages Segmentation and customer profile. Understanding these similarities and differences allows you to isolate the market into individual categories and create specific selling points accordingly.
The reason for their linking is because Pepsi is able to give them a higher quality of taste and a large variety of flavors. PepsiCo uses multi-segment type of positioning and accordingly, it targets more than one customer segment at the same time with different products or service packages. It draws the data straight out of the 10-year census data. Behavioral segmentation: Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses or responses to a product. Family life cycle- Depending on the stage in which a family is, its needs changes. This has been shown with the use of BeyoncÅ½. Assignment topic: A marketing plan for Pepsi.
Although self-reporting on weight shows that about 40% of people in soda drinking and non-soda drinking demographics feel like they are overweight, there is a direct correlation to the weight of someone and the amount of soda they consume. The following four variables are examples of demographic factors used in market segmentation: 1. Social media marketing programs usually center on efforts to create content that attracts attention and encourages readers to share it with their social networks. This helps in creating groups exhibiting a similar need and want, and can be targeted in a much more better way by companies. Market segmentation is a concept in economics and marketing.
He's also run a couple of small businesses of his own. Demographic segmentation is an approach to breaking up a company's target audience into more narrowly defined market segments based on personally-identifiable traits. Together they imply a study of the people. Demographic Segmentation Variables The various factors or parameters used for demographic segmentation are given below: 1. People can easily choose a suitable pack based on their family size. In the beginning, Coke had cocaine in it, which was to fight depression and also make consumers addicted to the drink. Businesses use such residential data before creating their production and selling plans.
Pepsi customers are mostly teenagers and young adults between the ages of 14 to 29. Demographic segmentation breaks down the market into different categories. They are giving their product in a very reasonable price and in different orientations so that their target customers can afford to have it. In marketing jargon, however, they mean a study of the people that forms a specific market for a product or service. This strategy, in the end, will allow Pepsi to grow and sustain above-average returns. Single individuals tend to prioritize themselves, while newly married couples are likely prioritizing each other and their homes. Markets can be divided on demographic factors like age, gender, education etc.
But the demand of luxury commodities depend on disposable income. Symbols, signs, logos and color are used to create strong-company or brand recognition and image differentiation. Pepsi is a symbol of quality and service, all over the world. There are different variables, which can be used to segment a market. Advantages of demographic segmentation include the fact that the information you need is readily available for you through venues like census data, and targeting a very specific audience can improve customer retention and loyalty. Based on age segmentation, products can be targeted for different age groups for babies, children, adolescents, adults, middle-age group or senior citizens 2. When creating a marketing campaign you shouldn't that assume all your customers are alike.