Marketing Strategy Of Pepsi

1. Introduction to Pepsi

The Pepsi product has a long history in the American beverage sector. Pepsi, a soft carbonated drink, is produced by PepsiCo Company. It is a company that has curved its niche in the American market and around the globe, but has diversified into other food items. Pepsi began in North Carolina as Brad’s drink, which was a name after its inventor, Caleb Bradham, but later took Pepsi Cola as its trade name and was awarded the patent in 1903 (PepsiCo, 2005). Mr. Bradham was a pharmacist and had developed Pepsi brand from his own backyard, primarily targeting a small customer base into what came to be one the strongest franchise systems in the USA. Pepsin and cola nuts were remarkably the major components of his product

First are establishments of customer loyalty where specific events prefer Pepsi drinks over other brands. PepsiCo also considers heavy and middle users periods like the summer, locations and events. It also segments the market based on consumers’ readiness to buy by marketing Pepsi to concerts, weddings and other ceremonies and to those who look for taste and quality benefits, especially in higher learning institutions and sports events. The last is the psychographic segmentation where PepsiCo markets Pepsi to consumers of diverse affinity and purchasing power based on their income and social class. Michman and Mazze emphasize on PepsiCo use of psychographic segmentation by “targeting young and consumers with a certain lifestyle and attitude towards life” (1998, p. 227). Today, you find Pepsi in African countries characterized by low income earners, in Asia and Latin America which are middle income and emerging nations, and also in North America and Europe, where member nations are high income

According to Wong et al., “PepsiCo is using brand portfolio strategy to achieve synergistic benefit through economies of scope and market power, where the product Pepsi is categorized under the Fun-for-You brands portfolio which cater to global and regional flavors” (2014, p.6).This positions Pepsi as a competitive and alternative refreshment in the beverage and specifically soft drink industry suitable for consumptions. Using tailored advertisements that link Pepsi to the broader society, it assists to capture the attention of the greater population in the globe or per continent. Pepsi also seeks to position itself through targeted marketing. For example, to the young generation, Pepsi can manage to attract potential consumers through lively marketing campaigns associated with the energetic