TOPIC REVIEW 2

1. The segmentation basis used by the company producing the soft drink
• Demographic variables is based on statistics such as income level, location,
education level, age and gender of the consumers. In the case of Coca-Cola
Company, it is easy to segment its market based on demography since different
parts of the world have different demographic variables. Segmentation based on
consumer behaviour is yet another segmentation option available to Coca-Cola
Company. Some consumers portray strong brand loyalty while others portray weak
brand loyalty. Others are heavy users of a given brand while others are light users.
• Behavioral variables is based on benefit sought. Different consumer groups seek
different things from use of a given product. This is more common in different age
groups where the young generation seek different kinds of satisfaction and feelings
from use a product as compared to the old generation. In the case of Coca-Cola
Company there are consumers who seek to quench their thirst, others seek to
refresh their bodies, other seeks to energize their bodies while others seek
nourishment. All these can be used to group consumers into different segments
depending on the benefits which they seek from Coca-Cola beverages. Other
segmentation options available to Coca-Cola Company include segmentation based
on lifestyle and values, and segmentation based on consumers’ levels of
uniqueness where there are consumers who prefer to stand out from the rest while
others prefer to be similar with the others.
2. Three different target markets for soft drink
• Actually, every individual is a potential customer for Coca-Cola
Company. The primary target is on the group with age 13-25 and the
secondary group is 10-39. The target group doesn’t differentiate by
gender. Life-style is usually busy, school/ university oriented or fast
business life.
• Coca Cola is the most successful drink around the globe. It is a soft
drink and it is the most popular drink among many different nations.
• Coca Cola Zero is a targeted for a teens age that do not want the
calories that come with a normal coke but at the same time they
want a great taste of it. And costumers get it as far as the drink is
sweetened with aspartame.
• Coca Cola Diet is a diet drink as well for adults age of 30-50, who are
trying to stay healthy and at the same time has a good taste of coca
cola. In addition this drink is sugar free.
3. Three levels of product for the soft drink
• Core product. The core benefit of Coca-Cola is to quench a thirst.
• Actual product. The generic product is a burnt vanilla smelling, black,
carbonated, and sweetened fizzy drink.
• Augment product. Coca-Cola’s augmented product is that it offers
Diet-Coke. How does Coca-Cola exceed customers expectations with
this product? By offering all the great taste of Coca-Cola, but with
zero calories.
4. This is an unbiased comparison of the two of the most popular carbonated
beverages in the world -- Coke and Pepsi.
• Brand equity is a major strength of Pepsi. It has a strong image and large
customer base. Brand equity does not just help it with marketing its brand
and product portfolio but also helps retain customers. It has strengthened
its brand equity by investing in quality and technological innovation.
• Pepsi is a global brand and sells across more than 200 countries. It has a
large network of suppliers and distributors which have helped it maintain
its global presence.
• Pepsi’s pricing strategy is also a major strength. It has priced its products
affordably. This has helped Pepsi reach a large customer group throughout
the globe. Affordable pricing has also led to higher sales and revenue as
well as popularity. The company has made its products available in all
corners of the world in various packs and sizes. From small one serving
packs to large family packs, its products are available in sizes that suit
varying needs. Pepsi also offers attractive deals from time to time to attract
customers.
5. Positioning map for soft drink