Coca ColaMegan George
Consumer segment
! The Coca Cola understands the needs of the customers.
! It develops a business strategy that aligns with the expected consumer behavior.
! Primary consumers or target market (consumers aged 10-25 years).
! Secondary consumers (aged 25-40 years) (Wang, 2021).
Resources
! Consumer behavior information can be sourced from resources such as:
! Social media platforms. ! Focus groups and surveys. ! Customer reviews ! Competitor analysis.
Secondary research
! Scholarly reviewed articles and journal articles are used in studying the characteristics of Coca Cola’s consumer segment.
! Characteristics of the consumer segment: ! Highly influenced into adapting a given
consumption behavior. ! Majority have varying purchasing power with
differences in level of income. ! Prefer trending fashion or newly introduced products
(Melancon & Dalakas, 2018).
Segmentation strategies
! There are various strategies the Coca Cola Company can segment the market:
! Demographic such as age, income, occupation and income.
! Geographic segmentation: based on the location of the customer.
! Psychographics: based on hobbies and interest ! Behavioral; strategy: based on behavioral patterns as
studies from the resources.
Behavioral segmentation
! This segmentation strategy is based on consumer behavior.
! Consumer aged (20-45) are affected by factors such as income, interests, age.
! These factors affect their consumer patterns. ! Behavioral segmentation would assist in
implementing the best offer in terms of marketing mix.
Selected consumer segment
! Segment: Low income, highly literate adults aged 25-40 years
! The segment is highly price sensitive due to limited purchasing power.
! The segment understands the quality standards of the product.
! The segment has information on prices (De et al, 2021).
Research needs
! Impact of technology: helps determine needed differentiation strategies.
! Effect of change in income: helps in understanding expected changes in demand.
! Effect of competition and pricing: helps determine the ability to switch to competitors.
References
Wang, J. (2021, October). How Coca Cola and Pepsi Use Segmentation in Consumer Product Industry. In 2021 International Conference on Public Relations and Social Sciences (ICPRSS 2021) (pp. 866-870). Atlantis Press. Melancon, J. P., & Dalakas, V. (2018). Consumer social voice in the age of social media: Segmentation profiles and relationship marketing strategies. Business Horizons, 61(1), 157-167. De Villiers, R., Tipgomut, P., & Franklin, A. (2020). International market segmentation across consumption and communication categories: Identity, demographics, and consumer decisions and online habits.