Coca Cola Market Segmentation Essay
Coca Cola Market Segmentation
Coca cola utilizes both internal and external marketing strategies to gain a competitive advantage over its competitors becoming a successful company with great earnings. Additionally, the company claims that the innovation is at the heart of everything they do add to their success. The company has segmented its market in terms of demographics, psychographic, geographic and lifestyle.
After building a strong reputation and brand image, the Coca-Cola Company changed its name from Coke to New Coke in 1985 as they continued to offer customers a better taste. Demographically, although the company seems to focus on the whole population globally, its particular target is the young generation showing the energy giving element to the customers. According to world demographics 2013, 57.4 percent of the global population lies in the age bracket of 15-54 years of age. The statistics provide a clear indicator that the Coca-Cola focus on the largest demographic in the world with potential customers thus a right strategy to ensure sustainability and growth. In regard to family size, the company serve its in different bottle sizes for families to choose according to their sizes ranging from 200ml to 2 Liters pack (Global Functional Drinks Industry Profile, 2014). The Coca-Cola Company practice geographic segmentation in terms of regions.
Through the price remains constant in all parts, the brands vary according to the weather of the region. For example, in Hong Kong during summer season Coca-cola has a unique brand called freezing coke (Global Functional Drinks Industry Profile, 2014). The strategy ensures continued brand loyalty by providing all weather drinks at the same price. Further in terms of place of consumption. Coca-Cola puts up vending machines in meeting terminus and stations to ensure access to all. Locally in states the company provides equal and continuous supply to the local shops. Low-income earners have access to returnable glass bottle with medium income earners having plastic non-returnable bottle and Coke tin for high-income earners.
In psychographic segmentation, Coca-Cola distinguishes customers into different groups based on buyer’s values, lifestyle or personality. Although people share the same demographic group, they exhibit diverse psychographic profiles forcing Coca-Cola to design and manufacture products suiting personality. In terms of lifestyle, consumers portray different lifestyles. Coca-Cola Company presented a more portable packaging for their soft drinks in order to provide for the modern ever busy user. The company endows its products with brand personality in line with a particular consumer personality. Further in observing culture and especially the diet matter, Coca-Cola produced health conscious products such as Coke Zero and Diet Coke (Global Functional Drinks Industry Profile, 2014).
The Coca-Cola Company boasts of high market and business share globally. The company has continuously gained more profits through use of different marketing strategies and market segmentation. Through segmentation, the company has managed to ensure continuous customer satisfaction by providing goods and services that meet all the social classes. Sales wise, the company have continuously experienced increasing sales by increasing the benefits derived from each segment for their products and services. The trend also benefits from the ever increasing customer loyalty as a result of satisfaction. Through its franchising model, the company runs a successful business in non-alcoholic beverage industry globally. It stands to capture any new drink type in the market as it has done before. A slight decline in segment consumption attracts careful analysis from the company to dig down into the cause and innovative measures to curb such loss.
Global Functional Drinks Industry Profile. (2014). Functional Drinks Industry Profile: Global, 1-35.