Coca Cola Analysis
Coca Cola Analysis
Coca-Cola is the most widely recognized soft-drink manufacturer and marketer around the world. Coca-Cola popularity around the world has come under threat from traditional rivals such as Pepsi and emerging local firms (Anders, 2013). In particular, Coca-cola’s dominance is under threat among teenagers and young adults who are very impressionable and readily accept Coca-cola alternative.
Currently Coca-cola does not have a specific target market as its products are targeted as the mass market which is not segmented (Anders, 2013). However, this advertising plan will target teenagers and young adults as this is the demographic where Coca Cola’s traditional dominance is at risk.
The marketing objective of Coca-Cola in this plan is to increase market share among teenage and young adult consumers
To make Coca-Cola appear like the coolest and most sophisticated soft drink among its rivals.
Demographic segmentation is an approach to segmentation that selects a homogenous market segment based on age, occupation, gender, ethnicity, nationality, income, religion, social class, family size, generation among other factors. Coca-cola’s will use age based segmentation to target an audience between 15 and 35 years (Michman, Mazze and Greco, 2003). This age group has various characteristic that make them stand out from the rest of society. Youth love to have fun and appear cool among their peer a factor that Coca Cola should consider in their marketing strategy.
Geographic segmentation is a segmentation approach that treats markets as distinct geographical regions. Some of the geographical segmentation variables include regional, metropolitan, rural, country, county, population, state and climate based segmentation. Demographic segmentation will help Coca-Cola succeed in their new approach that targets the youth market (Dahlen, Lange and Smith, 2010). Coca-cola should be aware that the consumer behavior of youths is affected by the geographical region they come from. For example, what is impressionable to Australian youths might be irrelevant to youths in the United States (Best, 2012). Coca-cola can become more popular among youths all over the world by tailoring its advertising message to lifestyle of youths in different geographic segments.
This segmentation approach treats customers as homogenous groups with different lifestyles. Coca Cola can use the Activities, interests, and opinion (AIO) surveys to create Psychographic segments (Michman, Mazze and Greco, 2003). Some of the variables used to segment markets psychographically include interests, opinions, attitudes, values and activities. Youths are involved in high-energy activities such as surfing, dancing, racing and extreme sports. Coca cola should seek to identify itself with these activities in order to become acceptable among the target audience.
Behavioral segmentation is an approach that is based on customer’s actual behavior towards the marketer’s product. This segmentation approach is based on variables such as benefits sought, brand loyalty, usage rate, readiness to buy, occasion and user status (De Mooji, 2013). Behavioral segmentation is very effective as it is based on product characteristics and consumers perceptions of the product. Coca Cola can use this segmentation approach to target youths who are loyal to the brand differently with those who have limited allegiance to the brand.
Anders, J. (2013). Coca-Cola’s Marketing Strategy: An Analysis of Price, Product and Communication. GRIN Verlag.
Best, R. (2012). Market-based management. Pearson Higher Ed.
Dahlen, M., Lange, F. & Smith, T. (2010). Marketing Communications: A Brand Narrative Approach. John Wiley & Sons.
De Mooij, M. (2013). Global marketing and advertising: Understanding cultural paradoxes. Sage Publications.
Michman, R., Mazze,E. &Greco, A.(2003). Lifestyle Marketing: Reaching the New American Consumer. Greenwood Publishing Group.