INTRODUCTION This case study and analysis on Pepsi Co industry provides an analysis and the d ifferent strategies the

chosen industry Pepsi Co uses which includes Market Segm entation, Market Targeting, Market Positioning, as well as the Marketing Mix of PepsiCo (Bellis and Mary, 2010).The study discusses more on the Pepsi Cos Market Segmentation. But the soft drink department of Pepsi Co is considered to be the growing, developed and widest known department in the world, Pepsi has used a lo t of new ideas to market their product. Pepsi more concentrates on marketing its beverage product which is known to be as the drink of New Generation. Such terms and advertisements regarding its product have given this industry majority of pr ofits as most of the teenagers got attracted to this brand. They believe to attr act most of the teenagers so that they can become a loyal customer of the market and majority of the people could adopt their product and they could get a lot o f profits which will in turn give them a very big success (Bellis and Mary, 2010 ). Despite the completion from the other leading brands like Coca Cola, Pepsi has b ecome one of the largest selling soft drink all around the world and it is liked by the people of all ages. Some of the surveys which were done recently have gi ven the results that around 90% of people wants to prefer Pepsi as their best so ft drink when they were asked which soft drink they prefer the most. The only re ason why this soft drink has been preferred my many people are because the manuf acturers of Pepsi Co industry are providing its consumers with a great and highe r quality of taste and also with different kinds of flavors. Pepsi Co is also considered to be a leading producer in the world which provides with lots of snacks, food and beverages for which the industry gets a huge prof its of more than $39 billion and it has workers over 185,000 working in it. The company consist of three branches where it is divided based on the products they manufacture they are PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages ( PAB) and PepsiCo International (PI). The company also owns other brands like Qua ker Oats, Gatorade, Frito-Lay, SoBe, Naked, Tropicana, Copella, Mountain Dew, Mi rinda and 7up (outside the USA) (Bellis and Mary, 2010). The products of Pepsi Co industry is recognized and is most liked all over the w orld. Presently Pepsi Co Company has many divisions which primarily operate and run in three important parts of US and international businesses they are beverag es, snack foods, and restaurants. In all these three major businesses the Pepsi Co company has attained and achieved a position as leader as it has been known f or its best bottling of the soft drink, it is also considered and known to be as worlds largest chip snack producer, and it has a really good name in the world a s that largest permitted company which operates large restaurants all around the world. The industrys success rate has been increasing a lot due to its performa nce which is considered to be at high standard, different strategies for marketi ng which they adopt, competitiveness, determination, obligation, and the persona l and professional mind set of the people who like their brands and the differen t practices which they use to get their business to achieve success (Bellis and Mary, 2010). Pepsi Cos full-fledged aim is to increase more and more the value of the investme nts of its share holders by increasing its growth of sales, the investments and the monetary activities. Pepsi Co Company believes that their success depends ma inly on the products they produce with great quality and their products should b e very safe, well organized economically and it should provide with good environ ment for its customers; so that the company gets great profits from the customer s and will be able to get more investments from the shareholders and it should a lso maintain its highest standards of loyalty towards its public (pyke and jim, 2010).

ANALYSIS Market Segmentation:

We already know that Pepsi Co Company provides the customers with lots of varied varieties of beverages such as carbonated soft drinks, sport drinks, dairy-base d drinks, energy drinks, fruit flavored beverages, ready-to-drink coffees, ready -to-drink tea, mineral water and frozen beverage. These products are sold in the market under the name of Pepsi which is the best brand, some of the products ar e Mountain Dew, Gatorade, Lipton, Starbucks, Tropicana, and so on. By providing such products, Pepsi co mainly aims to attract every type of customers whose has different taste and they Aim to produce the products which satisfy all types of customers (pyke and jim, 2010). There are two types/ levels of marketing which the Pepsi Co is good at using the y are: Concentrated Marketing Niche Marketing Concentrated Marketing: Even though the Pepsi Co has a large customers who likes the Soft Drink industry which are produced by this brand, Pepsi concentrates on its different brands to o. As has now become a loyal industry in the market. It provides all its brands with the same high quality and with different kinds of marketing strategies. One of its popular marketing strategies was that they came up with a word called NEW GENERATION drink which attracted many of the teenagers and they have really got many profits with such kinds of marketing strategies. Pepsi Co not only concentr ate on its one kind of brand but it has other divisions which they operate and p rovides with other different kinds of brands with the same high quality into the market (pyke and jim, 2010). Niche Marketing: Since 1990 Pepsi Co has been providing its customers with differential products and also is trying to introduce many other brands according to the taste of the customers. To increase the sales and the volume of the product Pepsi and to coun ter the strategies of its rival Coca, Pepsi has introduced a product called Sier ra Mist in the year 2002-2003 to counter attack the other brands like 7-up and t o go ahead than the brand called Sprite which was very famous at that time. Peps i has even tried to increase the volumes of their new products so that they can attract the customers and also they get lot of encouragement from the market. Th ey also tried to get a good name in some specific markets where these products w ere not getting that much profits as they expected. They have introduced some of their new brands like Code Red and Live Wire, which were considered to be the e xtensions of Mountain Dew, Pepsi One, and Pepsi Blue brands (pyke and jim, 2010) . At last due to the Pepsi Cos efforts they have countered all the problems which they were facing before one of them was their sales were decreasing a lot in th e area of carbonated drinks. They came up with many strategies for marketing the ir products and also the distribution of ready to drink products known as Starbu cks which actually worked well and so they could increase their sales as expecte d. The huge success of Pepsis product Mountain Dew Code Red came into market in t he year 2001 which has become the Successful innovation in 20 years in the area of soft drinks. Which has provided the company with lots of ideas and encouragem ent to produce many other different products into the market and also its compet itors invented and introduced different products (Herper, Matthew and Schiffman, 2001). Demographic: Lets focus on the product produced by Pepsi-Cola beverage product, Pepsi Co has a

very brief and old history this industry has been concentrating mainly on the y outh they made them as the prime target they came with a slogan Generation Next. T hey have spent lots of billions of dollars money in order to attract the young g eneration which actually implied that Coca-Cola is mainly for the older generati on as it was their greatest rival in soft drink industry. The main reason why t hese industries Pepsi-Cola targeted this area is because it is the largest produ cer of these brands and has a good name on the market and many customers already has liked them. Some of the statistics in the market has shown that the carbona ted beverages are mostly consumed by the youth and middle age people (Herper, Ma tthew and Schiffman, 2001). Also, Pepsi Co always try to target the young by att racting them with many different products and advertisements for which they have spent a lot of money so that they can compete equally with their greatest rival Coca Cola. They also have concentrated more on the college markets where they a cquire a lot of contracts with the universities so that they can improve their s ales and the product can be distributed well in the market. The key for the Comp anys success is because they use the behaviorist segmentation effectively in the market (Herper, Matthew and Schiffman, 2001). Market Targeting: The customers who consume the products produced by Pepsi Co are Teenagers and yo ung adults whose ages are around 14 to 30. The industry mainly targets at the Sc hools, Colleges, Universities, Homes, Restaurants, Hotels, and Stores (Hamstra a nd Mark, 1997). Market Positioning: The industry PepsiCo further plans to introduce different kinds of products whic h will provide the company with lots of success at their desired and targeted ma rkets, so that they can have a greater chance in countering their rivals which a re emerging in the market. Pepsi have introduced their products into the market so that they can be benefitted and also the customers should be satisfied (Hamst ra and Mark, 1997). Promotion: Promotion of their products plays a vital role in their success and as far as we know Pepsi Co has been doing well in promoting their products into the market. They have used different ways to promote their products and media especially pla ying a big part. Even through TV, we have seen different advertisements of the p roducts such as Pepsi and Mountain Dew soft drinks ADs. They also advertise their products by being the sponsors of some of the favorite TV programs which are li ked by large population such as sports, TV series etc. In addition to that Pepsi Co industry also organizes some of the events for its publicity and marketing o ne of the events was Pepsify Karogey. These events main aim is to promote the prod ucts into the market successfully. Even through newspapers like Jung and Dawn. P epsi Co has already advertised many of its products which it offers to its publi c. The posters usage is also a main strategy for promotion which will be creatin g an awareness of the product that the particular industry offers to its custome rs (Hamstra and Mark, 1997). Place: The distribution of the companys products is important too. And the places they d istribute the products so that it can be available to the customers should be ad equate. Normally the customers are expected to shop at some shopping malls and s ome of the places where they can get all the things what they need for daily pur poses. The supply of Pepsis is of low ambiguity. Some of the sources of supply ca pabilities of Pepsi Co are: Less breakdowns

 High quality Flexible supply capacity Mature production process A place where Pepsi is very much available and supplied and the customers usuall y come to take their products is at the grocery stores, stores and vending machi nes. However Pepsi is mostly consumed at the grocery stores as per the statistic s at this place it has 33% market share (Hamstra and Mark, 1997). Price Pepsi Co is a company which offers the products with great quality to its custom ers with some price range the price depends on the product i.e., the price may r ange from moderate to high which also depends on the use and the customers they target. The company cleverly decides the price of the product based on the competition f rom its rivals. But fortunately Pepsi Co is very flexible and so it could reduce its price very immediately. We will take an example to explain this as in the m onth of Ramadan whenever the Company Coca Cola has reduced the prices; Pepsi has done the same thing that is they also tend to reduce their prices and then afte r completion of that period the price again gets increased. Due to some of the r isks taken by the Pepsi Co Company they have been through some heavy losses whic h are very unfortunate. But even though it has gone through some losses now it i s a very rapidly growing industry which has covered all its losses and converted them into huge profits (Hays and Constance L., 1998). Consumer Solution: Pepsi Co has been offering its customers with very different kinds of products s uch as Energy drinks, Tea, Water, to carbonated drinks. Each product is released into the market so that it could satisfy the customer in every way and also the company aims to design the product by keeping the customers taste in their mind. For example, Energy drinks such as Gatorade are only produced so that it would s atisfy the athletes whereas Tea such as Lipton Iced Tea is produced to give a qu ality taste for all the normal customers. Therefore Pepsi Co has been able to sa tisfy all kinds of customers who have different tastes as they have produced eve ry kind of products with any variations (Hays and Constance L., 1998). Customer Cost: Even though the price of Pepsi Co products regularly changes once the price may hike and once it may come down but still the customers have not been affected by this pricing strategy of Pepsi Co. And also Pepsi Co has been very careful with its pricing strategy it is very flexible and reasonable in this area. As we alr eady know the price of the product depends on the product itself and it may rang e from high to moderate (Hays and Constance L., 1998). Convenience: As Pepsi Co products are found everywhere like in super markets, Convenient Stor es and vending machines, it can be easily available for all the customers to pur chase these products. Especially the vending machines which are found almost eve rywhere that is in the buildings or public places (Hays and Constance L., 1998). CONCLUSION From the study we can conclude that Pepsi Co has been satisfying its customers i n every way possible and is giving a lot of tuff competition to its rivals by pr oviding top quality products which are being liked by most of the consumers in t he world. The strategies they have adopted for being the number one in soft drin ks industry field has been very good. Their marketing strategies have provided t hem with lots of profits. For the production of high volumes of their products t he company has opted for different strategies which actually proved to be succes sful. Even though due to the risks they have taken because of the competition in market which has given them great amount of losses but still Pepsi Co has emerg ed as a leading producer of beverages due to their variations in the products an d the new inventions which they released into the market which has attained a gr

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