3.

1 Marketing Strategy
3.2 STP Analysis

Figure: STP process

Source: consumerpsychologist.com
In marketing strategy Segmenting, Targeting and Positioning (STP) play a vital role which
helps Coca-Cola to introduce its product to customer and make them buy through this process
they capture value from customer (Kotler- et- al, 2013). To understand the Coca-Colas
product and its value perception, here is the STP analysis

3.2.1

Segmentation Strategy

The competitive market and the changed demands of consumer have made Coca-Cola to
satisfy their needs by improving and changing its product. For these reason Coca cola has
been successful to attract the customers and enhance its sales without interrupting other
company. Such attempts taken by this company is to introduce new product based on changed
demand such are to introduce Diet Coke, Caffeine free Coke. There are multi segmentation
strategy which is used by Coca Cola. The marketing mix is used for the every segmentation
of Coca cola which has various products as estimated 400 and product mix of 3,500.
Geographic segmentation
There are different users of Coca Cola such as various ethnic groups, lifestyles, age groups,
sexes etc. Examples:

Oasis- Juice with various flavour for the people aged between 20-30 and this is served in
Ireland and Britian. Coca Cola diet, Coca Cola zero etc. for health concerned people.
Climate- the product of Coca Cola is used more in summer than in winter and the sales
increases in this time.
Demographic segmentation
Coca cola targets customer aged between 15 25 and more than 40 and they are male and
female both.
Income- Coca cola serves product for different people who have different income level.
Psychographics segmentation
The customer always value brand equity and for that reason they will go for the most popular
Coca Cola to show the status. This company also uses the education criteria to circulate the
advertise of Coca Cola. Moreover this company use the different product criteria in different
country with different taste and ingredients to value their culture.

3.2.2

Targeting Strategy

After describing the segmentation strategy for Coca Cola there comes the target market of
this company which indicates the consumer of Coke.
Demographic: The people aged from 13 to 40 plus drink the product of Coca Cola.
Socio-Economic: Based on economic level Coca Cola offer their product convenient to
people ranged from Middle to High class.
Psychographic: This Company provides the product depending on the demand of the safety
of health.

3.2.3

Positioning Strategy

In the world of global soft drink Coca Cola is regarded as world class brand which keeps
some word as think global, act local to position its product and for that reason it maintains
core product at same value but accepts the local market value and offering to satisfy their
needs. To maintain same image worldwide it uses positioning in strategic way as the world

takes this company as a part of life in all over and this value offering helps Coca Cola to
increase its sales that leads to loyalty.
Coca Cola gives emphasis on the emotion of consumer so that customer calls coke as a
partner fun, entertainment and occasion.

3.3 Marketing Mix:

Figure: Marketing mix

Source: marketingteacher.com

Though Coca Cola has overcome its ups and downs through its life cycle, it has become the
most popular brand having high brand equity with 3300 different products.

3.3.1 Product
With 3300 different products Coca Cola has achieved the biggest portfolio in the market of
beverage where it serves different products of beverage such energy drinks, soft drinks, fruit
drinks, coffee, diet free coke, water, caffeine free drinks etc.

3.3.2 Price
This company sets its price depending on the segmentation of geography and market and the
price of competitors. It also use cartel contract to balance in price among sellers as the market
of beverage is oligopoly.

3.3.3 Place
Being the popular beverage brand in the world it uses the distribution channel of Coca Cola is
the same as FMCG. This organisation has captured the small and mid-level market through
its strong distribution channel.

3.3.4 Promotion
Coca cola use different patterns of strategies regarding promotion for the benefit of getting
huge demand related to the culture of targeted country. This company always try to make
advertisement based on different occasion and circulate message of concern. This company
appoints its brand ambassador based on quality, popularity, acceptance to the customer, value
and some of its brand ambassadors are Taylor Swift, Aamir Khan, Shahrukh Khan, Deepika
Padukone etc. and also use different recession strategies to attract customers.

Reference
Anon, (2014). [online] Available at: http://softdrinkcolawar.blogspot.com/.../coca-colatargeting-and-positioning.ht [Accessed 24 May. 2014].
Marketing91.com, (2014). Marketing mix of Coca Cola. [online] Available at:
http://www.marketing91.com/marketing-mix-coca-cola/ [Accessed 24 May. 2014].
Pal, N. and Pal, S. (1993). A review on image segmentation techniques. Pattern recognition,
26(9), pp.1277--1294.
Phillips, C., Doole, I. and Lowe, R. (1994). International marketing strategy. 1st ed. London:
Routledge.
Shapiro, B. (1984). The marketing mix. 1st ed. Boston, Mass.: Distributed by the Pub.
Division, Harvard Business School.