Company: Pepsi
CEO: Ramon Laguarta
Year founded: 1965
Headquarter: Purchase, Harrison, New York, USA
Number of Employees : 319,000
Type: Fully-Owned Brand (PepsiCo: PEP)
Annual Revenue (FY2024): $91.9 Billion
Profit | Net Income (FY2024): $9.5 Billion
Products & Services: Carbonated & Non-Carbonated Soft Drinks | Coffee & Teas | Bottled Water | Sports & Energy Drinks | Juices
Competitors: Coke | Monster | Sprite | Red Bull | Mountain Dew | Gatorade | Nongfu Spring | 7UP | Tropicana | Nescafé | Nespresso | Fanta
Fun Fact:
Did you know? Pepsi was introduced as Brad’s Drink in 1893 by pharmacist Caleb Bradham?
Pepsi is PepsiCo’s flagship beverage product and one of the world’s leading soft drink brands. Caleb Bradham introduced Pepsi in 1893 as Brad’s Drink. Since the 1920s, Pepsi has been Coke’s arch-rival. In 2024, Pepsi’s parent company, PepsiCo, generated $91.9 billion in annual revenue, gaining profit of $9.58 billion. But who is Pepsi’s target market? [1]
Image Source: Bullfincher.io
To understand Pepsi’s secret to success and customer base, here is a comprehensive analysis of its target market:
Pepsi’s Target Market Overview
Pepsi’s target market spans the soft drink sector. Its customer base seeks refreshing, tasty, fizzy beverages. The brand has nurtured an excellent reputation by satisfying its customers’ needs. Pepsi’s products do more than quench consumers’ thirst. For example, in Feb 2025, Pepsi Zero introduced new “Strawberries ‘N’ Cream” and “Cream Soda” flavors to redefine sugar-free indulgence. These bold flavors cater to Gen-Z seeking unique and nostalgic taste experiences. They also meet the growing demand for flavored cola, which outpace unflavored varieties threefold. [2]
Pepsi has dominated the soft drink sector for over 130 years. The brand understands its target market and leverages innovative marketing strategies to retain its position in a competitive and rapidly changing industry. It connects with its diverse customer base through dynamic and engaging campaigns.
Pepsi expands its products and refines its marketing strategies to address consumers’ ever-evolving needs. This approach enhances adaptability, ensuring Pepsi’s offerings align with consumer preferences and prevailing market sentiments. For example, the brand has Diet Pepsi, Pepsi Max, and Pepsi Next. Each caters to different target audiences. Pepsi Max is recommended for consumers seeking low-calorie drinks. Diet Pepsi and Pepsi Next offer low-sugar beverages, ideal for diabetics and health-conscious consumers. [3]
Pepsi’s target market has unique demographic, psychographic, geographic, behavioral, and technographic attributes. These characteristics define the brand’s ideal customers.
Here is an in-depth analysis of Pepsi’s demographic, psychographic, geographic, behavioral, and technographic segmentation:
Pepsi’s Target Market: Demographic Segmentation
Pepsi targets teenagers to middle-aged consumers between 15 and 45 years who enjoy fizzy soft drinks. The brand primarily focuses on young adults aged 18-34. This demographic is active and comfortable with Pepsi’s carbonated beverages. In 2023, Pepsi controlled a 27% share of the US carbonated soft drink market. Coca-Cola dominated the US market with a 69% share, according to AdAge. [4]
Many young consumers seek innovation, excitement, and social engagement. These qualities are ingrained in Pepsi’s brand identity. Pepsi runs engaging marketing campaigns to appeal to youthful consumers. For example, the brand launched the “Pepsi Generation” campaign to encourage its target audience to “live for now.” This campaign linked Pepsi’s products with youthful vigor. It pioneered lifestyle marketing to youth and positioned the brand as a cultural icon. [5]
Although Pepsi targets young people, it is committed to marketing its products responsibly to limit children’s exposure. It supports parents’ role and all stakeholders responsible for guiding kids’ diet and lifestyle choices. In 2022, PepsiCo adopted the International Food and Beverage Alliance (IFBA) Global Responsible Marketing Policy. The company doesn’t advertise any products to children under 6, regardless of nutritional content. [6]
Pepsi’s products appeal to male and female consumers who are young, active, and socially engaged. However, each gender has unique preferences. Men prefer the flagship Pepsi Cola, while women favor diet and flavored versions. In 2024, the brand introduced Pepsi Wild Cherry. This drink showcases Pepsi’s flavor innovation and ability to cater to diverse tastes and lifestyles. Pepsi Wild Cherry is popular among female consumers. [7]
Pepsi tailors ads and promotions to resonate with different genders. Its campaigns target both genders by featuring diverse characters and scenarios that reflect real-life social dynamics. This marketing strategy creates a sense of inclusivity, attracting male and female consumers to the brand. It also strengthens Pepsi’s market appeal and brand loyalty across demographic segments.
Pepsi primarily targets middle-income households with high spending power. Its pricing strategy combines economy and premium pricing models. The brand also offers budget-friendly packaging options to attract low-income households. In 2025, Pepsi’s parent company announced plans to introduce more variety in product sizes, including single-serve items and smaller multipacks. This strategy can broaden Pepsi’s appeal to shoppers of all budgets. [8]
Another component of Pepsi’s demographic segmentation is education level. Pepsi’s products appeal to educated and non-educated audiences. Some consumers with low educational levels prefer Pepsi’s sugary beverages because they don’t understand the health risks of high sugar content.
Educated consumers are more health-conscious and prioritize sustainability and social causes. This demographic often chooses healthier soft drinks. In Mar 2025, PepsiCo acquired Poppi for $1.95 billion to offer healthy prebiotic sodas. “More than ever, consumers are looking for great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness,” said Ramon Laguarta, Chairman and CEO of PepsiCo, “Poppi is a great complement to our portfolio transformation efforts to meet these needs.” [9]
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Pepsi’s Target Market: Psychographic Segmentation
Psychographics – Lifestyle choices, interests, values, personality traits, and overall attitudes.
Pepsi implements psychographic segmentation to tailor its products and marketing policies to align with the target audience’s aspirations and emotional needs. Its soft drinks appeal to younger consumers who prioritize authenticity, inclusivity, and social responsibility. The brand integrates these values into its ads and initiatives to target this psychographic group. For example, Pepsi celebrates Pride Month to support the LGBTQ+ community. The brand is focused on promoting inclusivity and equality. [10]
Pepsi’s target market includes Gen-Z and Millennials. According to PepsiCo’s research, 73% of Gen-Zs and Millennials view experiences as more valuable than tangible products. Pepsi meets this audience’s needs by offering away-from-home occasions. “Faced with increasing time pressures in their busy lives, Gen-Z consumers are gravitating toward meals that fit their on-the-go lifestyles. Our global brands are responding,” said Mustafa Shamseldin, Category Growth Officer and CMO at PepsiCo. For example, Pepsi offers canned sodas in portable packs, perfect for consumers on the go. [11]
Pepsi’s young consumers are socially active and responsible. They admire brands that share these values. Pepsi fulfills this requirement through the pep+ initiative. It leverages pep+ to embed sustainability operation-wide and inspire positive change for the planet and people. This initiative is paying off. In Jan 2025, PepsiCo was #42 on Fortune’s “America’s Most Admired Companies” list. [12]
Pepsi strives to produce tasty soft drinks that help protect the planet and people. Its parent company has set ambitious sustainability goals to attract and retain eco-conscious consumers. For example, PepsiCo aims to transition its brands to 100% recyclable / reusable packaging by 2025. It seeks to reduce virgin plastic and greenhouse gas emissions by 20% by year 2030 and achieve net-zero emissions by 2040. These goals will help minimize the environmental impact of Pepsi’s products, increasing the brand’s appeal among eco-conscious consumers. [13]
Another component of Pepsi’s psychographic segmentation is health consciousness. The brand targets health-conscious consumers. It offers products to support healthy lifestyles. For example, the brand introduced Diet Pepsi to meet the increasing demand for healthy soft drinks. Diet Pepsi is a sugar-free beverage with zero calories and carbohydrates. It uses artificial sweeteners instead of sugar. [14]
Pepsi is positioned as a brand synonymous with celebrations. Its target audience seeks social engagement. The brand connects with this segment through youth-oriented events and sports sponsorships, social media campaigns, and celebrity endorsements. For example, Diet Pepsi’s Super Bowl ad starred Cindy Crawford in the 1990s. Although Apple Music replaced Pepsi as the Super Bowl’s halftime show sponsor in 2023, it is still popular among American football fans. In 2025, PepsiCo revived its 50-year-old Pepsi Challenge marketing campaign. It hosted blind taste tests of Pepsi Zero Sugar and Coke Zero Sugar during Super Bowl weekend. “What counts most for the Pepsi brand is reinforcing its connection with football fans and staying involved in Super Bowl conversation, even if that’s not on TV,” said Jenny Danzi, Pepsi’s senior marketing director. [15]
Pepsi’s Target Market: Geographic Segmentation
Pepsi serves a global target audience. The brand sells soft drinks through retailers, groceries, convenience stores, and wholesalers in 200 countries and territories. Its parent company built a customized direct-to-consumer version to connect hundreds of mobile apps with one consumer data platform. This platform powers engagement and interaction with customers globally through a localized app. In 2023, PepsiCo’s integrated app went live in Mexico and Brazil. North America’s platform was launched in 2024. [16]
Pepsi seeks to increase its share and enter new emerging markets. The brand leverages “The PepsiCo Way” initiative to strengthen its global supply chain and drive its expansion worldwide. In 2023, PepsiCo operated over 1,000 manufacturing facilities worldwide, including 291 company-owned plants. [17]
Pepsi is North America’s second most popular soda after Coke. Its marketing strategies in the US and Canada tap into cultural events to appeal to consumers who enjoy carbonated soft drinks, bottled water, sports drinks, and other beverage options. In 2021, Pepsi controlled an 8.9% market share in the global carbonated soft drink category. [18]
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Pepsi is a leading soft drink brand in several countries. It aims to outperform Coke and other competitors by tailoring its marketing efforts and products to fit local consumer preferences and cultural nuances. For example, in Apr 2024, Pepsi launched its limited-edition carbonated energy drink, Sting Blue Current, in India. PepsiCo has also introduced tea-based beverages in the Asia Pacific that align with regional consumption habits. [19]
Pepsi attracts European customers by adjusting its products to meet local preferences, such as reduced sugar and healthier alternatives. Its campaigns in the UK, France, and Germany often integrate local traditions, sports events, and sustainability. The brand tailors its pricing to different geographic locations. For example, Pepsi sodas cost more in developed countries than in emerging markets. [20]
Pepsi’s Target Market: Behavioral Segmentation
Pepsi understands its target market’s purchase behavior. It leverages this understanding to boost sales and drive long-term growth. Many Pepsi customers buy their fizzy soft drinks from retailers and chain stores. Pepsi’s parent company works with retailers to address customers’ needs. In 2022, PepsiCo collaborated with its retail partners to mitigate “consumer reaction” to inflation. It helps customers overcome high living costs, boosting sales and brand loyalty. [21]
Consumers enjoy PepsiCo’s drinks and snacks over 1 billion times daily worldwide. Pepsi strives to integrate its soft drinks into all occasions, including parties, family gatherings, movie nights, and sporting events. The brand tailors its marketing campaigns to specific events to capitalize on consumption patterns. For example, in Dec 2024, Pepsi launched its new “It Can Wait” Christmas campaign in the UK. This campaign encourages consumers to leave their to-do lists and spend time with loved ones. [22]
Pepsi has a loyal customer base. It combines several strategies to create a sense of community and boost brand loyalty. For example, PepsiCo launched the Pepsi Merch Promo in Jan 2025. This promotion offered 10,000 Pepsi-branded merchandise prizes, including clothing, bags, and skateboards. These items make customers feel part of the Pepsi community and increase brand loyalty. PepsiCo has several loyalty programs, including Tasty Rewards and Power of One in the US and Canada, KazandiRio in Turkey, and Joy in Mexico. These programs help Pepsi nurture a loyal customer base. [23]
Pepsi’s customers seek specific benefits from their soft drinks, including refreshment, flavor, and sugary kick. The brand leverages first-party data to understand its target audience and adapt its products and marketing strategies to meet their needs. For example, Pepsi expanded its offerings to include zero-calorie and lower-sugar beverages. These products help the brand meet the demand for healthier soft drinks from health-conscious consumers. They align with prevailing consumer behavior, ensuring Pepsi remains relevant in the changing market landscape. [24]
Pepsi’s Target Market: Technographic Segmentation
Pepsi caters to young consumers, including Gen-Z and Millennials. This target audience is tech-savvy. They use social media to connect with like-minded consumers and engage in online communities and forums. These online spaces offer Pepsi a unique opportunity to target the younger generation. Pepsi’s marketing strategies use digital platforms, social media influencers, and content creators to reach its audience. In Feb 2024, Pepsi had over 1.5 million followers on Instagram. It posts high-quality images of people enjoying Pepsi’s soft drinks and celebrities like Lindsay Lohan to target young consumers. The brand also has many followers on Facebook, TikTok, and X. [25]
Pepsi is an innovative soft drink brand. It adopts new technologies and solutions to fulfill consumers’ needs and address prevailing market challenges. For example, PepsiCo expanded its SodaStream in-home and in-office sparkling water systems in Jan 2023. Customers use the SodaStream technology to create carbonated Pepsi drinks and refill bottles at home. They can also mix Pepsi concentrates for a customized beverage. This solution can help Pepsi increase its percentage of refillable and reusable packaging options, reducing environmental pollution. According to PepsiCo, a consumer saves 63 plastic bottles monthly by using the SodaStream system. [26]
References & more information
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Featured Image by NIKHIL
Boy with Pepsi Image by Quỳnh Lê Mạnh
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