Company name: pepsi company logo

3.0.Competitor analysis

PEPSICO operates in a highly competitive market. They compete against global,regional, local, and private label manufacturers on the basis of price, quantity,product variety, and distribution. Their chief competitor is The Coca-Cola.

Coca-Cola currently has aslightly larger share of carbonated soft drink (CSD) consumption in the U.S. andmaintains a significant CDS share advantage in many markets outside NorthAmerica. However,PEPSICO has a larger share of chilled juices and isotonics and PepsiCo International’s snack brandshold significant leadership positions in the snack industry worldwide. According toPepsiCo’s 2006 Annual Report, corporate management believes that the strength oftheir brands, innovation and marketing, coupled with the quality of their products andflexibility of their distribution network allows the corporation to compete effectively.With this said, PepsiCo is the world’s second largest food and beverage company,accounting for almost $40 billion net sales. They beat out their chief competitor inthe CSD market, Coca-Cola by nearly $20billion and are second only to the NestleCorporation in net sales.PepsiCo’s many subdivisions and brands also allow the corporation to succeed their competitive markets. PepsiCo currently owns 21 ‘’mega-brands’’ which generate sales revenues of at least $ 1 billion each.

4.1. MARKETING STRATEGIES

Operating in more than 200 countries PepsiCo, the parent company of Pepsi has been the leading company in the food & beverages industry having more than 100 years of experience in the market.

The convenience of purchasing, availability, Low-price, favourable taste are some of the things a customer expect in a competitive non-alcoholic beverages market and that’s what offered by Pepsi which makes it a leader in its segment fighting neck- on the neck with Coca-Cola.

4.1.MARKET STRATEGIES & TARGET MARKETING STRATEGY
Market segmentation of PEPSI

Market or marketing segmentation means dividing a market into smaller groups with distinct needs, characteristics or behaviors who might require separate products or marketing mixes. Marketers consist of buyers and buyers differ in one or more ways. They may differ in their wants, resources, locations, buying attitudes, and buying practices. Through market segmentation companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently with products and services that match their unique needs.

To identify the target consumers, companies must divide the market into groups with distinct needs and preferences before identifying which segment to target (Kotler & Keller, 2017). The target market for PepsiCo products is the population aged between 13 and 45 years. Since this population mostly comprises of young people, Pepsi sells its products in restaurants, schools, colleges, fast food stores, and other places that this target market frequents.