Essay
Read the following scenario and then answer the questions that follow.
A recent article in the Wall Street Journal described how the next "Pepsi Generation" likely will be drinking diet cola. Pepsi recently learned that one-third of teens were diet soda drinkers and that teens start drinking diet soft drinks at a very early age. However, they also acknowledged that a substantial portion of young people don't consider diet sodas cool, particularly men. The chief marketing officer for Pepsi-Cola North America was quoted as saying, "We are treating Diet Pepsi as the flagship brand. . . . It's a big step for us." Indeed, this is a major break with the traditional soft-drink marketing, in which the sugar-sweetened brand still dominates in market share. However, with concerns of rising obesity and schools cutting back on sugar-sweetened drinks in vending machines, soft-drink manufacturers, like Pepsi, are responding with increased marketing of their diet soft drinks. As part of this new change in focus, Diet Pepsi will be marketed as a hip, cool brand for everyone, including teenagers and Baby Boomers. Meanwhile, the article stated that Pepsi is narrowing its sales pitch for regular Pepsi-Cola to "soda drinkers younger than 25, Latinos, African-Americans, and sports fans."
-What segmentation variables is Pepsi using when it narrows its marketing efforts for regular Pepsi-Cola to "soda drinkers younger than 25, Latinos, African- Americans, and sports fans"?
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