MKT5006 Principles of Marketing-Geographic Segmentation

Coca Cola uses "Multisegment" targeting strategy which means that the company has more than single, well- defined, market segment.  It develops a marketing mix for each of the segments. Coca Cola has more than 400 different products line, total of 3,500 product mix.

Geographic segmentation

Coca Cola has drinks that targets different age groups, ethnic groups, sexes, lifestyles, etc. Examples:

- Oasis- Juice made for the younger working adults, between the ages of 20-30. The product is available in different flavors (berry, lemon, and orange tangerine). It’s mostly popular in Britain and Ireland. 

- Coca Cola- the most popular soft drink so far that being sold in most countries in the world. The large demand for its taste and the trend toward healthier lifestyle influenced Coca Cola to produce healthier products such as Coca Cola Zero, Diet Coca Cola, and etc. 

- Coca Cola Zero- targets teens that don't want calories but want the taste.

- Diet Coca Cola- targets adults, between 30-50 who are health conscious but want the taste.- Minute Maide- targets kids and adults from 1 year to 10 and 40 plus. It’s convenience to carry. It targets parents that want their children to drink healthier drinks.

Climate- Coca Cola’s consumption in the summer is 60% than 40% in the winter; therefore, the company's sales are higher in the summer. It also focuses in hot area in the world.

Demographic segmentation

-Age- 15-25 years old and 40 plus.

-Gender- targets both genders with wide variety drinks.

-Income- segments 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.

Psychographics segmentation

People who are brand conscious will not drink beverages of less known brands. They will try to show their status by drinking Coca-Cola.

The level of education is another factor that the company is paying attention to. In a high percentage education, the company can use advertisements to convey the company massage.

Because Coca Cola is a recognized world brand, people will drink it without hesitate. 

Coca cola Company competes in the nonalcoholic beverages segment of the commercial beverages industry. The nonalcoholic beverages segment of the commercial beverages industry is consisting of numerous firms.

Answer:

With the change in the world there is increase in thrive in the business in the past years. Company believes in looking ahead, understanding the trends which help to expand the business in the near future. The company wants to be prepare of what is about to come. “We must get ready for tomorrow today, that’s what our 2020 vision is all about.” This helps the company to continue surviving and achieving the destination by doing road map with the bottling partners.

Mission 

The road map of the company starts with the mission of the company which is long lasting. This helps the company to set a purpose and a standard, for achieving this company set their actions and decisions.

• Company wants to refresh the world
• Believe of the company in inspiring the moments of happiness and optimism.
• Company wants to create good value and want to make a difference.

Vision

Vision of the company is to serve the framework for the roadmap which provides guidance to the business by describing the needs to achieve the quality growth and sustainable growth.

• People- Company want to maintain good working environment which makes it best place to work.
• Portfolio- Company wants to deliver quality beverages by satisfying the needs and desires of the customers.
• Partners- Company believes in mutual and enduring value, which is created by combining suppliers and customers all together.
• Planet- Company wants to be helpful and supportive to all, thus how company can fulfill social responsibility.
• Profit- Company wants to maximize the profit or revenue of the company which helps the shareholders to get the returns.
• Productivity- Company wants to be fast moving, highly effective and a lean organization.

Targeting

The company follows multi-segment target strategy which says that there is presence of more than one target group. Company contains more than 400 product lines along with total 3,500 product mix. Thus the company develops different marketing mix of the segments.

Geographic segmentation

Coca Cola Company provides beverages that target different groups, genders, age group, etc. For instance: - Oasis- this is a juice which is made by the company for the working younger adults having the age of 20-30. This product has different flavors such as orange tangerine, lemon, and berry. The product is popular in cities like Ireland and Britain.

Coca cola: - This is the most common soft drink till the time, this product has the huge demand for its trends and taste; that is the reason it is available across the world. With the change in trends company is focusing on producing healthier products such as Diet Coca Cola, Coca Cola Zero, etc.

Diet Coca Cola: - Target audience is adults, age groups of 30-50 who want drink well in taste but they are health conscious.

PowerAde: - Target audience is athletes, age groups of 13-27; it is a soft drink.

Coca Cola Zero: - Target audience is teenagers who want taste.

Minute Maide: - Target audience is kids and adults, age groups of 1 year to 10 and 40+. This drink is convenient to carry and the company target parents those want their children to drink healthy drink.

Climate: - Climate affects the sales of the company, company target hot areas because the consumption of coca cola in summer is 60%. On the other hand in winter the consumption is only 40%.

Demographic segmentations

• Age- Company target 15-25 and 40+ years people.
• Gender- Company provides different variety of drinks to both genders.
• Income- There are different income groups people, company is retailing returnable glass bottles for low income group. Company sells coke in tins for high income group.

 Psychographics segmentation

Coca cola is consumed by the people who wants to consume branded products and are brand conscious, because consuming popular brand products adds to their status. Company focuses on the education, for which company do advertisements for delivering the message. People consume coca cola without any hesitate as it is a well-known brand.

Competition

The company participated in nonalcoholic segment which is included in the beverages industry. There are many firms included in the beverage industry. The company like coca cola competes in different geographic areas along with local regions. A nonalcoholic beverage includes water products, flavored waters, juices, nectars, drinks, coffees, teas, energy, dairy-based drinks and functional beverages. These some types of the beverages are sold by the company in the form of ready-to-drink or any other way. Including US Coca Cola Company has different competitors in business, PepsiCo, Inc., is the major competitor.  Apart from Pepsi there are some other competitors such as Groupe Danone, Nestlé, Kraft Foods Inc., etc. competitors of Coca Cola Company include beer companies. The coco cola company also compete with regional and local firms and that to against with the retailers, over there retailers have developed their own store or consist of private label beverages brands.

There are many competitors factors that affect the working of the company those factors include pricing, sales promotion, advertisement, product innovation, production techniques which bring efficiency in the work, new packaging of the product introduced by the coca cola company, Dispensing equipment and new vending, development and protection of the trademark and brand. The factors that affect the working are not limited.

The company has many competitive and the strength of the leading competitors in brewage industry is high level of customer acceptance. The competitors of the company have a worldwide network of distributors and bottlers which helps the company in packaging of the drinks. The company has the capability of managing the marketing team. Competitors have talented group and dedicated associates who manage the marketing of the company.

The coca cola company does competitive challenge that includes the strong competitors from all the geographic regions and in many different countries. In which a concentrated retail sector which consist of the powerful buyers have chance to choose the company products. The group of retails have right to choose the products freely out of the company products, or competitors company products. Thus this include the beverage suppliers and the individual retailers who are having either their own stores where product are available or private label beverages brands.

SWOT Analysis

SWOT analysis includes the factors that company need to consider in this strength and weakness are based on the internal environment analysis and opportunity and threats are based on external environment analysis.

S- Strength

From centuries company has been managing or operating successful operations. The operations of the company are conducted in more than 200 places. The company has large share market and shareholding of cola segment which is approx. 85%. In the world, it is the greatest familiar trademark. Coca Cola Company has contract with its Bottlers which are under negotiations.  The company evaluation of the coca cola is $80 billion approx. There was an increase in the sales when company launched customer names on their bottles. And some of the prompting customers took photos beside with the bottle and posted that photo into the social media.

W- Weakness

Pepsi is one of the toughest competitors of the coca cola. Pepsi provides different food products that include chips, lays and other foods. Coca cola is lacking behind in this criteria as company yet to develop snacks and food.

• Low product diversification
• Low presence in health drinks
• Water management issues
• Currency fluctuations

Coca Cola Company has vast growth opportunities. The company has enough capital and potential to expand the business. Being innovative company brings changes in the products which is an advantage against competitors. Company tries to merge with the other companies by eliminating competitors in the global business. Company has the capabilities to expand the other products in the set markets other than the soft drink market.

T- Threats

Pepsi is one of the global competitors of coca cola. Coca cola have threats from other soft drink products company, because customers can switch from one product to other. The competitors make strategies against coca cola to remove coca cola from market.

Marketing Mix

Marketing mix is a tactical marketing tool used by the company which includes product, price, place, promotion. The company forms a coordination of the factors which is controlled by the company so that company will be able to increase the sales and profit. Further is the description of the 4P’s of the marketing tool.

Effective marketing would be merger with the marketing mix elements for managing program, which is formed for delivering value to the customers.

Product

The product of the company includes beverage concentrates and syrups. Across the world company has 300 brands of beverages with the main brand Coke, Fanta, fruit juice, PowerAde, and sprite. The packaging of beverages contains different plastic bottle sizes; that includes 1.25 liters, 600 ml, 300ml and 2 liters.  Company also provides aluminum cans that contains 375 ml beverage. The business of the company is successful running and leading that is the reason company holds good reputation in the market.

Marketing strategies for product

The company tries to bring different products from its competitors so that company can gain advantage. Company brought change in the product by coke with lemon and vanilla coke in the year 2002. This brought increase in the sales and profit of the company.  For increasing the awareness among the customer and making their preference, company innovated the new ways such as introducing vending machines, bringing new packaging in the 2001. This leads to increase in the profit and sales of the company.

Price

The prices of the product may vary as per the brand and size. Company makes their products available at different retail stores, petrol stations, and convenient stores. Out of these stores petrol and convenient stores sell products at the fixed price.

Pricing methods used by the company

Competition- The prices kept by the company are generally low or above or equal to the participant’s product price.

Discount- Company provides discounts on lean season or on special occasions to the customer who helps the company to increase the sales and profit.

Pricing strategy

Psychological pricing is used by the company for pricing the product. For instance- 18 cans of coca cola soft drink having pack of 375ml are priced at 9.98$ instead of 10.00$. As per the pricing strategy customer prefer coca cola. For coping up with the competitive pricing the company fixed the similar level of price.

Promotion

Advertisement is the main source of promotion used by the company. With the way of advertisement on television company can make the large audience aware about the product. You know you want is the latest coca cola advertisement going on television. Earlier if you drink it, you get better of life used by the company for advertisement on radios. Currently, company takes the benefit of being involving in celebrated games such as FIFA world cup.

Place

The company sells its product in bottles, cans through fountain wholesalers or retailers or distributors. The agents and distributors sell the products to the retail outlets that include milk bar, restaurants, petrol stations, etc. company follows indirect channel of distribution in this company is not able to retail products directly to its target audience.