Broad Differentiation Strategies

Alternative beverages have become very popular over the last decade and have made a huge impact on the beverage industry. Examples of alternative beverages are energy drinks, sports drinks, and vitamins enhanced beverages. These beverages gain popularity around the mid-2000s. The overall sales of alternative beverages were affected from 2005-2007, where sales grew by more than 13 percent then slowed down to 6 percent when the economy began to decline. The market was hit hard as a result of the economy between 2008 and 2009. Sales declined by 12.3 percent during this time period. The sales for vitamin enhanced and flavored waters had declined by 12.5 percent during this time period. Meanwhile energy drinks were not being as negatively impacted; there was a 0.2 percent growth from 2008 to 2009. In 2009, the United States accounted for 42.3 percent of the worldwide sales for alternative beverages. Sports drinks accounted for 60 percent of the alternative beverage sales, vitamin enhanced drinks accounted for 23 percent, and energy drinks accounted for 18 percent of the alternative beverage sales. During this same year, Pepsi Co was the number …show more content…
Therefore, the company uses the broad differentiation strategy. The Broad Differentiation strategy is used when companies are “seeking to differentiate the company’s product offering from rivals in a way that will appeal to a broad spectrum of buyers.” (Thompson, 2014).There is a diverse range of products that Pepsi offers and this is because they understand their customers. Pepsi comes out with different varieties of its products with new flavors to keep their customers intrigued. Each Pepsi product has an audience it caters to but everyone can still use it. This strategy allows Pepsi to be able to charge premium prices for their products. This also gains the brand loyalty. Customers will continue to consume Pepsi products and remain loyal to the