Segmentation, Targeting & Positioning of Coca-Cola

* Segmentation comprises identifying the market to be segmented; identification, selection, and application of bases to be used in that segmentation; and development of profiles.
* Targeting is the process of identifying the most attractive segments from the segmentation stage, usually the ones most profitable for the business.
* Positioning is the final process and is the more business-orientated stage, where the business must assess its competitive advantage and position itself in the consumer's minds to be the more attractive option in these categories.

1. Segmentation, Targeting & Positioning of Coca-Cola By Lokesh Parashar & Manas Dhibar

2. Introduction The Coca-Cola company is the world largest beverage company. The company best known product coca cola was invented by john Stith Pemberton in 1886. The Coca-Cola formula and brand was bought in 1889 by ASA Candler who incorporated The Coca-Cola company in 1892. Coca-Cola currently offers nearly 400 brands in over 200 countries or territories and serves 1.5 billion servings each day. The Coca-Cola company headquarter is in Atlanta, Georgia. Its current President and CEO is James Quincey. With the acquisition of major brands in India, it went on to be known as The Hindustan Coca Cola Beverages Pvt. Ltd.

3. Market scenario Based on Interbrand’s best global brand study of 2015, Coca-Cola was the world's third most valuable brand. Gained an advantage over pepsi when it took over Parle in 1994. Coca Cola focuses on a diversified product portfolio, both within the beverage industry and has few products outside of that industry.

4. Segmentation Market segmentation involves dividing a market into smaller groups of buyers with different needs, characteristics or behaviors that might require separate marketing mix or strategies. Segmentation can be divided into various parts:- Geographic Segmentation ( Regions, Climate ) Demographic Segmentation ( Age, Gender, Family Size, Income ) Psychographic Segmentation (Lifestyles, Social Class, Personality ) Behavioral Segmentation ( Occasions, Usage Rate, User Status, Speed) Coca Cola has more than 400 distinct items line, aggregate of 3,500 item blend.

5. Coca Cola uses different blends to target different age groups, ethnic groups, sexes, lifestyles, etc. for example they use “OASIS”, a juice to target the age group of 20-30. And also it produces products like “Diet Coke, Coca Cola Zero” for the health conscious people who don’t prefer calories but cannot forget the taste. This age group consists of the people aged 30-50. Coca Cola even uses special packs at special occasions to encourage people to buy more of their products. Like  “Christmas Celebration Bottle Bow, World Championship Games” for which their sales even went up by a good margin. Disney Hundred Acre Woods – fruit juice for kids; Odwalla - for adults who want a grown up taste in a healthy fruit beverage; Powerade - sport drink, targets athletes between 13-27 ages Targets different income level. For example, by packaging: for low level income, the company is selling returnable glass bottle; for high level income, the company is selling coke in tins

6. TARGETING Target marketing tailors a marketing mix for one or more segments identified by market segmentation. Target marketing contrasts with mass marketing, which offers a single product to the entire market. Two important factors to consider when selecting a target market segment are the attractiveness of the segment and the fit between the segment and the firm's objectives, resources, and capabilities. Coca Cola has surely targeted the customer’s media habits very effectively for sure like: The youthful target gathering of people of the brand cherishes media presentation. Mobile era and online networking is a piece of every day life.

7. Coca Cola’s utilization in the late spring is 60% than 40% in the winter; in this way, the organization’s deals are higher in the mid year. It additionally centers in hot region on the planet. This is the reason, despite being an American company, its still doing a very successful business in India. Where “Ranveer Singh & Mahesh Babu in South India” are the brand ambassador of the company and the T.V commercials a very popular and the sales are all time high because the company understood the principle a while ago “think global, act local”. This scenario of high sales is seen in most of the Asian and the Gulf countries, reason being the temperature. Coca Cola has deliberately situated itself inside of the world soda pop market. It confronts a crucial inquiry: does it need to keep the same situating or to adjust as indicated by the 200 nations where the brand offers its items. Coca Cola items are obtained by various classes, yet mostly by middle to high level class.

8. Differentiation A differentiation strategy is the development of a product or service that offers unique and differentiating attributes which are valued by customers and perceive to be better than or different from the products of the competition. Differentiation in Coca Cola Coca Cola Company spends round about 20% of their total advertisement budget for maintaining and communicating on its differentiation strategy. Coca cola has created its differentiation by utilizing soft sell approach. Company has successfully positioned itself on the following standards: Corporate reputation for quality and innovation: one of the best place to work Successful communication of perceived strengths of the product: Integrated marketing strategy. Symbol of joy and fun. ‘The Secret Formula’.

9. Positioning Positioning is the act of designing the product and service offering of a company in the minds of the customer’s so that: The consumer can relate the product and service offering to a need or want. The consumer can perceive a brand’s characteristics relative to those of competitive offerings. It is process of creating an image of the product and service offering in the minds of the consumer. This impression of the brand by the shopper prompts a high level of reliability and settles on the acquiring choice more programmed. Coca Cola has been fruitful by utilizing  Unique Selling Preposition word as “Carry on with the coke side of life”, identified with euphoria and satisfaction. At the point when the name of Coke is said, the principal thing that comes into psyche is fun and diversion.

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