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Coca cola target segment

19/04/2021 Client: muhammad11 Deadline: 2 Day

Use academic marketing knowledge to analyze these two questions seriously:

1. Which types of segmentation strategies does Coca-Cola use to categorize the cola beverage market?

2. Are these types effective in this market?

Provide support for your answer.COCA-COLA Back in 1886, an Atlanta pharmacist created a caramel-colored liquid and brought it down the street to Jacobs’ Pharmacy, where it was mixed with carbonated water and sold for five cents a glass. The beverage caught on, and sales took off from the initial average of nine drinks a day, to today’s total of 1.7 billion Coke-owned beverages consumed daily. The success spawned bottling plants, six-pack cartons, international distribution—and imitators. For example, Pepsi followed in 1902 and today is a $29 billion conglomerate with vast holdings. Both companies spent decades marketing a single brand, Coke or Pepsi. But over the course of the 20th century, they both expanded their product lines by introducing drink alternatives such as Fanta, Sprite, TAB, Fresca, and Diet Coke (Coca-Cola), along with Diet Pepsi and Mountain Dew. The relatively simple segmentation that these offerings suggested has since grown increasingly com- plex and sophisticated, especially as the competitors have expanded their inter- national sales into hundreds of diverse country markets. Although they face a number of smaller competitors, the primary focus in this mature market is to take customers away from its main rival, or else find a way to encourage existing customers to drink more cola—both challenging tasks. For Coca-Cola, the best solution is to pursue extensive product development for new and different mar- ket segments. Market Segmentation Strategy In a tightening, competitive consumer market, Coke has developed unique prod- ucts for various specific market segments. Because these unique products appeal to specific groups, Coke has been able to increase its sales without cannibalizing the sales of its other products. In addition to the products already mentioned, for example, the company launched caffeinefree versions of both Coke and Diet Coke to appeal to cola drinkers who wanted to cut back on their caffeine intake but pre- ferred colas to lemon-lime-flavored drinks. By introducing these decaffeinated versions of traditional sodas, Coca-Cola increased the number of sodas it sold each day, without hurting sales, because the consumers targeted by these products already had been avoiding or minimizing cola consumption to reduce their caf- feine intake. Dieters Segment As more Americans expressed concerns about their weight, Coca-Cola began by introducing Diet Coke, which became the number one selling diet soft drink in the United States within a year of hitting shelves.

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