Producing one item saves costs for advertising and marketing (Lamb et al., 2011, p. 275). However, focusing on undifferentiated marketing prevents the company from revealing the benefits of segmented economy. Despite the disadvantage, marketing of one product only can be favorable when it comes to small channels of distribution. This is of particular concern to small towns having small grocery departments (Lamb et al., 2011, p. 275). Thus, it can have only one marketing mix meeting the demands of target consumers. However, if there is more than one store in a town, the policy of undifferentiated marketing is unlikely to be cost-beneficial (Lamb et al., 2011, p. 275). If Coca-Cola plans to open a new subsidiary, it should think over introducing differentiated strategy to ensure the success of the venture. At this point, Coca-Cola should strictly identify age characteristics of the target consumers to define how products can be modified to meet the changing demands of the population. Such a strategy is more congruent of the idea of thinking globally and acting locally, which will be successful. Though only one product is marketed, variations can create more distribution channels covering different market segments.
Judging from the above-consideration, the policy of undifferentiated target marketing has evident advantages. However, to expel the emerged drawbacks, more emphasis should be placed on developing characteristics of target consumers.
Lamb, C. W., Hair, J. F., & McDaniel, C. (2011). Essentials of Marketing. US: Cengage Learning