Case Study Analysis of Coca-Cola – Segmentation, Targeting, Customer Analysis Summary

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Table of Contents

Coca-Cola VALS
Coca-Cola Customer Analysis
Coca-Cola Product Market
Segmentation & Targeting Analysis
Conclusion
References

Introduction

Coca-Cola Company is one of the most global successful multinational corporations headquartered in Atlanta, USA. The corporation has branches in more than 200 countries, which are doing well both in sales and management.

This case study focuses on the research about Coca-Cola Company and analyzes its VALS information, Customer Analysis, Product Market, Segmentation and Targeting, Competition, and Competitive Market Analysis.

Coca-Cola Values and Lifestyle Survey Information (VALS)

Regarding VALS information, the corporation recently used psychographic procedures in dividing its market. Based on the available information, the buyers are classified into various categories using psychological traits, depending on the person’s lifestyle (SRI-BI 1).

Here, the person’s lifestyle determines his/her purchasing behavior and helps in determining the consumers’ attitude, aspirations, opinions, hopes, desires, beliefs, fears, prejudice, needs, fears, and desires (SRI-BI 1). Therefore, the company uses the information received using VALS to develop brand personalities and images. As a result, the corporation increases the preference for its product and boosts the overall sales.

Coca-Cola Case Study: Customer Analysis

Since the company provides a range of energy and soft drinks, its customers are drawn from all categories of people regardless of age, race, sex, culture, and other social attributes (Perreault 24). The company has numerous brands specifically to satisfy the needs and tastes of its worldwide consumers (Lagos, Schirf and Smith 2). Indeed, the global success of the company products results from the rise in consumer preferences.

Notably, people from all social classes identify with the range of coca-cola soft drinks available in the market. Those from high, medium and low-class purchase coca-cola products because the drinks are of different prices to cater for the financial position of the customers (Lagos, Schirf and Smith 2). As a result of innovation, the company has been able to meet the consumer needs and aspirations

Coca-Cola Product Market Analysis

The company has a range of products, which guarantee the consumers’ health needs. The products are of great taste and low fats. Furthermore, it has fruit juices for adults and children to supplement fruits, which people need for health and refreshment. Other products include energy drinks, mineral water, sport drinks, soft drinks, tea and coffee drinks.

Considering the company products, energy drinks include play and rehab among others. Juices include fuze, acueducto, andina fresh and others. Mineral water includes vio, acquamist and others. Soft drinks include Coca cola, Fanta, and Sprite among others. Tea and Coffee include deeppresso and other products.

Coca-Cola Segmentation and Targeting Analysis

Coca-Cola Segmentation Analysis Summary

The criteria that the company uses to classify its customers are measurable, responsive to marketing mix and reasonable (Perreault 42). Therefore, the segmentation criteria that the company applies include economic, geographic, demographic, behavioral and psychographic.

Under economic segmentation, the market is divided based of the level of income (Perreault 55). Therefore, this classification has people contain people from high-income, medium-income and low-income categories.

Geographic segmentation acknowledges variables climate, population growth, region, and population density (Perreault 56). The company invests more on regions with high population growth and density.

Demographic segmentation relies on human variables including age, ethnicity, gender, occupation, education, family status and others (Perreault 57). These variables are different aspects and the company applies then only on areas deemed essential, in the sense that those factors do not affect the consumer choices and preference.

Behavioral segmentation enables the company to use variables such as price sensitivity rate of usage; benefit sought, and brand loyalty (Perreault 58). In this area, the company uses such attributes to improve on the quality of its products.

Psychographic segmentation helps the company determine the consumers’ lifestyle, attitude toward the product and value he/she attaches to it (Perreault 59). Through this segmentation, the company is able to understand the customers’ preference and desires thus make informed choices during distribution.

Coca-Cola Targeting Analysis Summary

Through enhancing promotion and advertising, the company targets high and middle class people because this category consists of people with enough money to purchase such luxury products (Shimp 37). In addition, the company has innovated economy packs, costing less so that the consumers from low class do not miss these luxurious products.

Such innovation has made the products and the company popular among the public. For instance, coca-cola soft drink is one of the most popular brands that the company has. Furthermore, its cost is reasonable and pocket friendly for all the consumers drawn from all classes because the product is packed in relatively small quantities.

Coca-Cola Competition Analysis Summary

Since there are other companies manufacturing soft drinks and the non-alcoholic ones, the Coca-Cola Company operates in a very competitive business environment.

Some of the innovative approaches to encounter competition include product’s diversification, price reduction, carrying out targeted advertising and promotions (Lagos, Schirf and Smith 2). Competition is very healthy since it increases innovation while improving the quality of the products (Blythe 78).

Coca-Cola Company competes in a number of industries including soft drink, beverage, juice, non-alcoholic beverage, health & nutrition, energy, sports, coffee & tea manufacturing.

Owing to the steady increase in demand for the above soft drink, the company faces stiff competition from the other business players in the industry. Perhaps, the high demand for the luxury drinks led to emergence of other industries in this field to bridge the gap (Blythe 102).

Coca-Cola Competitive Market Analysis

As a business entity, coca-cola company faces a stiff competition from other players in the soft drink industry. Notably, competition is imminent and the company is doing enough to minimize its impacts on the consumers through advertising and promotion (Shimp 44).

The major competitors threatening the operations of coca-cola company include American Beverage Corporation located at Verona, Aquaterra Corporation located at Mississauga, Pepsi, National Beverage Company, and Cott Corporation among others.

American Beverage Corporation manufactures and distributes its soft drink and non-carbonated products to different countries around the globe (Blythe 105). Majorly, the company dominates the sales of its products in the US, Canada, United Kingdom, but also in other parts of the world. Moreover, the company products target users from different groups including age, religion, gender, cultural background and social class.

Aquaterra Corporation is another key competitor to Coca-Cola Company. It manufactures various soft drink flavors, which are sold in many countries around the world (Blythe 106). Many of their customers prefer the products due to the company’s health considerations.

Coca-cola also faces competition from Pepsi Company that is known for its famous soft drinks, including Mountain View and Pepsi among other products. Pepsi Company market and distribute a number of products worldwide, with its niche market in the US (Lagos, Schirf and Smith 2). In addition, the company is also increasing its non-carbonated beverage production, due to the rising consumer preferences for the drinks.

National Beverage Co. is another stiff competitor to the company. It manufactures, markets, develops, and distributes various beverage products in the US and other parts of the world (Lagos, Schirf and Smith 2). The company and others take advantage of the growing world population that needs the soft drinks. Specifically, the company manufactures distinct brands with a variety of flavor according to the customer demands.

Some of their brands, which have attracted a number of consumers, include Faygo and Shasta (Lagos, Schirf and Smith 2). It also has cola drinks, VooDoo Rain for the young consumers, St. Nick’s Holiday and Ohana fruit-flavored drinks (Lagos, Schirf and Smith 2).

Since the customers are increasingly becoming health conscious, the company exploit this by producing premium beverages to achieve this, and maintain its customers.

Cott Corporation is another competitor producing high quality premium drinks such as juices, high energy and organic beverages among others. The company sells its products in the US, Canada, United Kingdom, and other parts of the world (Lagos, Schirf and Smith 2). In addition, the company products target consumers from different categories including age, religion, gender, cultural background and social class.

Conclusion

In general, Coca-Cola Company remains the dominant business entity that provides refreshing soft drinks. Though it has a lot of competitors in the field of soft drinks, fruit-flavored drinks and other non-carbonated drinks, it uses innovative techniques such as economy packs, intensified marketing and informed marketing segmentation to remain competitive.

Since the products are luxury drinks, their users are drawn majorly from the high and middle classes. This means, competition is very high and the best company can only survive in this market through innovation and diversification, being affordable and manufacturing products, which guarantees the consumer of healthy life. Indeed, Coca-Cola Company has succeeded in its diversification strategies and in the quality of is products.

References

Blythe, Jim. Essentials of Marketing Communications, (3rd Ed.). New York: FT/Prentice Hall, 2006. Print.

Lagos, Theresa. Schirf, Lisa and Smith, Vicente 2001, Analysis of the Coca-Cola Company. PDF file. Web.

Perreault, William. Basic Marketing: A Marketing Strategy Planning Approach, (17th Ed.). New York, NY: McGraw-Hill Publishers, 2009. Print.

Shimp, Terence. Advertising, Promotion, and Other Aspects of Integrated Marketing Communications. (7th Ed.). Mason, Ohio: Thomson South-Western, 2007. Print.

SRI-BI, 2006, The VALS Segments. PDF file. Web.

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