What is the Target Market of Diet Pepsis

Principles of Marketing - Philip Kotler


After this you you should read this chapter in the To be able to do:

1. Define you the terms “market segmentation”, “selection of target segments of the market” and “product” - Positioning in the market. "

2. To lead You the basic principles of segmentation of consumer markets and industrial markets.

3. Explain You, how companies choose a market coverage strategy.

4. Say You, like the company's products to position is novelty in the market.

"Coca-Cola" and "PepsiCo" fight for the market of soft drinks that do not contain caffeine and sugar

It seems that today the soft drink manufacturers there is the drink for everyone. There are standard drinks like cola, cola drinks without sugar, with sugar but without caffeine, sugar-free and caffeine-free, not to mention the drinks are not related to the type of cola, which can also be with sugar and without it, and sometimes with or without caffeine it. Companies "Coca-Cola Company", "PepsiCo" and other soft drink manufacturers adhere to the current market segmentation policy, developing new products specifically to meet the needs of each group of consumers.

The first managed drink cola "The Wright Diet" among sugar-free drinks, the company "Royal Crown" in 1962 began production. Attention to the success of "Royal Crown", the company "Coca-Cola" the next year published his own diet - Cola as "Table". In 1964 the diet cola drinks market and company "PepsiCo" went with its "The Diet Pepsi." What's new ? "Coca-Cola" and "PepsiCo" Established almost immediately in the market as the most popular diet drinks like cola. And "The Diet Wright" and "Table" and "The Diet Pepsi" - all day they were determined market segment, which consisted of women observing their weight.

In the early 70's of soft drinks have gained solid long-term popularity of much of the market, which consisted of young people born in the post-WWII "baby boom" years. Sales of soft drinks per year increased by 10%. to compose the aging of the individuals in this segment, but for them to become the main objects of attention of their own health and nutrition. Many refused to take soft drinks with sugar and caffeine, such as Coca-Cola and Pepsi-Cola, or consider them harmful to health or to contribute to completeness, or both harmful and contributing to the fullest. And although soft drink sales continued to grow, the growth rate slowed to 2% by 1982.

In the Coca-Cola company, there was another problem. Coca-Cola has always been the number one soft drink, but its beginning to challenge the primacy of Pepsi-Cola. Despite the fact that overall growth in the beverage industry has been sluggish, sales of diet drinks in the period from 1981 to 1982 grew by over 10%. "Coca-Cola" is considered the diet drinks market as a bullet with great growth potential. To consolidate its leadership, the company has developed a new product - "Diet" from Coca-Cola - for weight-conscious men. According to one of the soft drink industry experts, the novelty turned into the most popular soft drink and running in an unprecedented short time. A company, "PepsiCo" was not long in coming. The positioning of the Citric Acid Diet Coke "Pepsi Light" has changed by orienting it to the same market, ie men want to reduce the daily rate of calories consumed. At the same time, both companies continued to offer their first diet drinks "Table" and "The Diet Pepsi" to women.

At the same time non-alcoholic beverage industries were cultivated without caffeine market. Conscious consumers are increasingly concerned about the health idea that the presence of caffeine in soft drinks is negatively affecting the body. For this group of customers in 1980 the company "Royal Crown" released the first beskofeinovuyu cola. This idea was taken up and the company "Philip Morris" to reposition its most popular drink "Seven Up" per beskofeinovoy cola market. In addition, the company "Philip Morris" has developed a completely new beskofeinovuyu cola called "likes". Not wanting to miss out on a growing market, the company "PepsiCo" released in 1982 just two new colas, "Pepsi-free", in which there is no caffeine, and "Sugar fries, Pepsi-free", in which there is no caffeine , no sugar. Own beskofeinovye drinks and began to offer other companies, for example, "Dr. Pepper." Today such drinks on the market for about twenty.

The company "Coca-Cola" appeared on the market beskofeinovyh drinks as one of the last. Reluctance to do this due to the fact that the greatest success in the past was their caffeinated drinks and the company did not want to offer new items that could cause damage to its established products. However, the success of other manufacturers in the beverage market beskofeinovyh "Coca-Cola", and the company beskofeinovye versions of all three of its cola drinks released in 1983 convinced - "Rayet Coca-Cola". "Coca-Cola", Taba "and"

How to lead "Coca-Cola" and the management of "PepsiCo" intend a market segmentation policy to continue creating new products. Brian Dyson, the president of the company, "the United States Coca-Cola," says his company is aiming at smaller goals than previously likely; market segments may, and perhaps will, offer beverages, juices, and nutrient-release beverages. Roger Enrico of PepsiCo emphasizes the importance of demographics as a starting point when creating new products "because as the population ages, and their needs and needs change, and this will be the key to further segmentation " 1.

Every company is aware that their products are not the same as for all buyers. Buyers of this too much; they are widely dispersed and differ from each other with their needs and habits. Some companies are best to focus on serving specific parts, or segments of the market. Every company needs to identify the most attractive market segments that it is able to serve effectively.

Sellers do not always adhere to this practice. Your views have gone through three phases:

Mass marketing. With mass marketing, the seller is engaged in mass production, stimulating mass distribution and mass distribution of the same product to all customers at once. At the time, the "Coca-Cola" company was producing only one drink for the entire market in the hope that it would be enjoyed by everyone. The main argument in favor of mass marketing is that such an approach should minimize production costs and prices and form the greatest possible potential market.

RAW MATERIAL differentiated marketing. In this case, the seller produces two or more products with different properties, different designs, different quality, in different packaging and so on. N. Today the company "Coca-Cola" produces various non-alcoholic beverages in packages of various sizes. These products are designed to not only appeal to different market segments but to create a wide variety of customers.

TARGET MARKETING. In this case, the seller makes a distinction between the market segments, selects one of them or more, and the development of products and marketing systems is based on each of the selected segments. For example, the company "Coca-Cola" has created a drink "Tab" to meet the needs of consumers who are concerned about diet.

Today firms are increasingly moving away from masses of differentiated and commodity marketing techniques to aim marketing technique that helps sellers to identify better marketing opportunities available. Any target market trader can develop the right product for that market. In order to ensure an effective reach of each of the market, it is the price, sales channels, advertising measures can vary. Instead of their marketing efforts by syringes ("shotgun"), he will be able to focus on their customers who are most interested in buying goods ("rifle shooting").

Targeted marketing requires three basic activities (see. Fig. 42).

First - Market segmentation - Market divided into different groups of buyers, each of which require separate goods and / or marketing systems. The company defines various ways to get market segmentation from profiles segments and assesses the attractiveness of each of them.

The second - the selection the Target market segments - Assess and select one or more market segments they enter with their goods.

The third is that Positioning the product in the market - To ensure the product's competitive position in the market and the development of a detailed marketing mix.

Fig. 42. targeted marketing activities

In this chapter we will look at the basic principles of market segmentation, the selection of target segments and the positioning of goods.