Adv. media and branding

ABSTRACT

In 1898, Caleb Bradham, a young pharmacist began experimenting with a mixture of juices, spices and syrup in a bid to create new refreshing drinks that he would serve his customers. In the process, he succeeded in inventing new beverages known as Pepsi-Cola (Huesmann, G., 2003). Nowadays, Pepsi is one of the leading and well known soft drink in the world. Pepsi-Cola came from humble beginnings to become one of the most beloved products in the world, boasting a consumer base in over 200 countries worldwide. PepsiCo sells more than 500 beverage brands and snacks that appeal to people of all age groups as well as a demographic category. Today, the company is worth $ 29 billion, with thousands of employees all over the world. Some of the brands of PepsiCo include Mirinda, Mountain Dew, Starbucks Doubleshot, Pepsi Light, Pepsi Max etc. There is a way in which consumers perceive and react in front of the Pepsi brand.

CONSUMER BEHAVIOR TYPOLOGY

Consumer behavior denotes the buying behavior of final consumers who buy goods and services for personal consumption. PepsiCo, just like all big companies did and continue to do a lot of marketing effort through product promotion, advertising etc. to attract consumers (East et. al., 2016). The question arises, how do prospective consumers react to such marketing efforts towards Pepsi products? Several factors influence consumer purchases. They include cultural, social, personal as well as psychological factors. The first factor that influences consumer purchases is culture. It also plays a big part in the consumer behavior of Pepsi consumers. A case study was once done in Malaysia. The country has many races. Of late, many people tend to drink Pepsi since its Halal and doesn’t contain any alcohol. At first, most people in Malaysia didn’t drink Pepsi for fear that it contained alcohol. Additionally, the culture of Malaysia shows greater concern towards health and fitness. To this effect, Pepsi introduced Pepsi Max with less sugar and gas. Under culture, sub-culture also plays a big role in consumer behavior. Pepsi needs to target consumers based on racial groups, nationalities, religions etc. The company ought to be aware of countries that do not allow their people to consume Pepsi products like was the case in India, where Pepsi was banned due to high sugar concentration. Pepsi should be keen and make advertisements that are neutral and does not touch the sensitiveness of nationality, religion etc.

Another factor that influences consumer behavior of Pepsi consumers towards Pepsi product is personal factors, which consists of age, occupation, lifestyle, personality and economic situation of consumers. Concerning age, the company needs to target children and teenagers more, since older people are concerned about their health and hence are sceptical about Pepsi products. Occupation also plays a role in goods and services bought. Only working people can purchase Pepsi products and so, the company needs to target them more. However, not all of those working often buy such products; hence the company needs to find ways of influencing them, through means such as advertisement. Another factor that influences the consumer buying behavior of Pepsi is social factors. Consumer behavior is influenced by family, roles, status and groups. Regarding groups, it is easier for the company to woo them into buying their products since as one buys, they encourage others to do the same. Therefore, these factors play a big role in influencing consumer behavior for Pepsi products.

TARGET SEGMENTATION OF PEPSI Co.

Consumer segmentation denotes the division of customer base into specific groups, and people in such groups have similar tendencies that are relevant to marketing, such as gender, age, interests as well as spending habits. Pepsi Co., as any other company, engages in consumer segmentation to break down the company’s consumer base for marketing purposes. In targeting the segments, PepsiCo uses a differentiated targeting strategy hence the difference in offers (Bachmeier, K., 2013). Based on Forbes, the company categorized its portfolios as, “Fun for you", which comprises carbonated snacks and soft drinks, “Better for you", comprising of low-calorie products, and lastly, “Good for you” comprising of its healthy products. Many companies often use this strategy to gain a bigger market share and hence, minimize overall risk. Selling different brands is better for consumers than if it had been just one. The company sells its products to different consumers from different places.

The table below represents the segmentation of Pepsi Co. ;

THE CONSUMER BUYING PROCESS

The consumer buying process refers to the steps that are taken before a consumer making a purchasing decision. A case in point is when a consumer has a party at their home and so they want to purchase several Pepsi max products for the visitors to quench their thirst during the party. The first process involved the recognition of needs and wants. A need denotes an essential product that one has to obtain. In this case, the need is to quench the thirst of his visitors during the party. The second step involves an information search. This process involves searching and gathering necessary information about product choices. In this case, the consumer is likely to search the information concerning the pricing of Pepsi products on the internet. The third process involves the evaluation of choices. In this case, the consumer is likely to evaluate choices where he makes a comparison concerning the prices of Pepsi products compared to other brands. The fourth step is the purchase stage, where, in our case, the consumer purchases the Pepsi Max product for his guests. The last stage will be the post-purchase evaluation stage, where the consumer will evaluate the decision. Evaluation is important and it will play a big role in the consumer’s loyalty to the Pepsi Max product and the Pepsi Company.

REFERENCES

Bachmeier, K. (2013). Analysis of marketing strategies used by PepsiCo based on Ansoff's theory. GRIN Verlag.

East, R., Singh, J., Wright, M., & Vanhuele, M. (2016). Consumer behaviour: Applications in marketing. SAGE.