Segmenting, Targeting and Positioning

There is a need to target the consumers more intricately. An interpretation of the consumer behavior is what determines how the various market segments are made. Market segments are basically the segregation of customers according to aligned needs or wants.

The segmenting takes place according to parameters such as demographics, geographic, psychographic and behavioral. From a marketer's point of view, the lifestyle of your consumer is what needs to be taken into account. The demographic variable comes into picture after the  and behavioral aspects are clearly demarcated. Here, behavioral means the buying behavior of the customer.

In case of Pepsi, the segmenting could be as follows :

Behavioral 

Occasions - Dinners, Parties, Family functions

Benefits - Taste, Refreshing

Psychographic

Social class - Upper, Lower middle(the smallest bottle is for Rs. 10), Middle

Lifestyle - Enthusiastic, Go-getters, ambitious

 Demographic 

Age - All age groups drink Pepsi, but 14 - 35 should be a range they look at

Geographic
Pepsi reach is very refined because of their distribution system. Hence, it moves beyond the urban contours

For targeting, we see that most of Pepsi's advertisements are primarily targeted to the youth. Since the product gives a refreshing feeling on a hot summer afternoon, a cold drink is what appeals to the most. Hence, the youth or the age group specified may not be the only ones who consume the drink.

Sizes of the bottle also determine the buying behavior that satisfy a particular requirement. For example, the 2L bottle will be bought by somebody who is probably arranging a weekend get together at home.

The brand Pepsi has always been very enthusiastic in its appeal as it is a refreshing drink. Hence its association with the youth is always been there. We see that in promotional strategies, events, advertisements etc. Also their taglines, the recent one being 'Oh Yes Abhi' and 'Live For Now' resonates the same message. So the way they position themselves comes from value the product provides to its target group.