Segmentation, targeting and positioning of Coca-Cola
A. Introduction
Coca-Cola, the world largest beverage company, began in 1886 in more humble circumstances with sales averaging nine drinks per day to the 1.6 billion servings per day it currently boasts in over 200 countries (Form 10-K, 2013). This report seeks to analyse The Coca-Cola Company’s (“TCCC”) strategy in market segmentation, targeting and positioning of one of their best selling and revolutionary beverages, ‘Coca-Cola Zero’.
B. Segmentation
Segmentation is “the process of dividing a larger market into smaller pieces based on one or more shared characteristics” (Solomon et al, 2012. p.223). Coca-Cola has more than a single, well defined market segment and attempt to reach as many consumers as possible. These markets can be identified demographically based on age and gender and through psychographic segmentation.
Demographic Segmentation: Age, Gender
In the modern world it is increasingly becoming challenging to stay relevant due to the intergenerational differences that exist amongst teens and especially young adults. After conducting research, the beverage giants concluded that the age group between 18 -34 were in need of a beverage that could be more relatable to their generation. According to Dan Dillion, Vice-President, Diet portfolio, “Coca-Cola Zero is exactly what young adults told us they wanted - real Coca Cola taste, zero calories, and a new brand to call their own (Diggs-Brown, B. 2011, p.95). Understanding this emerging untapped segment has enabled them to further expand their product offerings.
ii. Psychographic segmentation
Although the demographic information is valuable it doesn't provide a more useful insight into those groups and their characteristics. Psychographic data provides Coca-Cola with the necessary information in order to segment consumers “in terms of shared activities, interests and opinions” (Solomon et al, 2012. p.231). They determined that the lifestyle choices amongst the young males in the 18-25
Coca-Cola, the world largest beverage company, began in 1886 in more humble circumstances with sales averaging nine drinks per day to the 1.6 billion servings per day it currently boasts in over 200 countries (Form 10-K, 2013). This report seeks to analyse The Coca-Cola Company’s (“TCCC”) strategy in market segmentation, targeting and positioning of one of their best selling and revolutionary beverages, ‘Coca-Cola Zero’.
B. Segmentation
Segmentation is “the process of dividing a larger market into smaller pieces based on one or more shared characteristics” (Solomon et al, 2012. p.223). Coca-Cola has more than a single, well defined market segment and attempt to reach as many consumers as possible. These markets can be identified demographically based on age and gender and through psychographic segmentation.
Demographic Segmentation: Age, Gender
In the modern world it is increasingly becoming challenging to stay relevant due to the intergenerational differences that exist amongst teens and especially young adults. After conducting research, the beverage giants concluded that the age group between 18 -34 were in need of a beverage that could be more relatable to their generation. According to Dan Dillion, Vice-President, Diet portfolio, “Coca-Cola Zero is exactly what young adults told us they wanted - real Coca Cola taste, zero calories, and a new brand to call their own (Diggs-Brown, B. 2011, p.95). Understanding this emerging untapped segment has enabled them to further expand their product offerings.
ii. Psychographic segmentation
Although the demographic information is valuable it doesn't provide a more useful insight into those groups and their characteristics. Psychographic data provides Coca-Cola with the necessary information in order to segment consumers “in terms of shared activities, interests and opinions” (Solomon et al, 2012. p.231). They determined that the lifestyle choices amongst the young males in the 18-25