PESTLE Analysis of Coca-Cola and Demographic Segmentation

The report provides a PESTLE analysis of Coca-Cola, including political, economic, social, technological, legal, and environmental factors, as well as opportunities and threats. It also discusses demographic segmentation based on age, gender, income, and family size. The report concludes that Coca-Cola should focus on increasing its reach in untapped markets, diversifying its product portfolio, and acquiring other companies to strengthen its position in the industry.

Running head: MARKETING MANAGEMENT
Marketing Management
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Executive Summary
The report assisted in overall analysis of the PESTEL and the opportunities and threat analysis of
Coca-Cola Company and product. The different segmentation aspects on the basis of age, gender
and income level have been performed in order to analyze the different strategies which will be
beneficial for the overall success of the firm.

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Table of Contents
PESTLE Analysis of Coca-Cola......................................................................................................3
Opportunities and Threats of Coca-Cola.........................................................................................4
Demographics..................................................................................................................................5
References........................................................................................................................................7

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PESTLE Analysis of Coca-Cola
Political factors- The most essential political factor is the direct impact of the different
laws and legislations on food products. In United States, Food and Drugs Regulations apply to
the business along with the Coca-Cola products as well. There are different quality standards
which are required to be maintained which can be challenging for Coca-Cola Company (Grant,
2016).
Economic Factors- The different customs and culture of various countries can create
huge impact on the products of Coca-Cola. However, the company has tried in adapting to the
respective culture and creating new flavors.
Social Factors- Coca-Cola tries to distribute their goods in various countries and try to
satisfy the customer demands effectively as well. However, in US this has been noticed that
people mainly focus on their health wherein they need to respond to the different health needs of
the individuals effectively.
Technological Factors- Machinery has assisted Coca-Cola in manufacturing the different
products in higher and better quantities. With the implementation of social media, they have tried
in attaining the different preferences of the customers by providing proofs and this encouraged
the ales of the company.
Legal Factors- Coca-Cola retains the different law and legislation related rights that are
connected to the production which is inclusive of the future and the present products which are
developed with the original process.

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Environmental Factors- Coca-Cola is being negatively impacted by the convenience of
water; however, change in the climate can affect the sales of the company. Coca-Cola is required
to remain constant to the different environmental laws while they produce the goods.
Opportunities and Threats of Coca-Cola
Opportunities
 Increasing the reach of the products in different untapped countries as this will help in
boosting the sales of Coca-Cola ("Coca-Cola Global", 2018)
 Diversifying the different products portfolio by entering into the snacks industry by
improving the offerings of Coca-Cola among existing customers to their customers
 Acquiring the different other companies which will help in strengthening the place of
Coca-Cola in the industry ("Coca-Cola Global", 2018)
Threats
 The health consciousness among the different individuals can affect the sales and
revenue growth of Coca-Cola in a negative manner as they prefer healthy fruit drinks
 Strong competition can lead to reduction in the market share of Coca-Cola which will be
negative impact on growth of Coca-Cola ("Coca-Cola Global", 2018)
 Huge difficulty in adhering to the different rules and regulations in different countries
is the other aspect which can affect growth of Coca-Cola

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Demographics
In demographic segmentation, market of Coca-Cola is divided in various groups on basis
of age, gender, income and life cycle of family. The demographic variable in segmentation is the
major aspect for Coca-Cola in distinguishing the group of customers (Schlegelmilch, 2016).
Age and Life Cycle Stage
Gender
Both men and women are the target customers of Coca-Cola with different behavioral
and attitudinal orientations.
Income
This is the base segmentation of Coca-Cola wherein this can be seen that there are
different sizes for different family sizes. This is inclusive of 500ml, 1L, 1.5L, 2L pack
(Rothaermel, 2015).
Size of Family
Coca-Cola tries to segment their products by different group and income levels wherein
the lower income group can use the glass bottle which is returnable, for the middle class, there
are non-returnable plastic bottles and for the higher and premium class, there are tins for Coca-
Cola.
Social Class

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The social class has huge significance on sale of products of Coca-Cola wherein the main
target customers are inclusive of the middle and higher income group customers in the entire
market.

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References
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley &
Sons.
Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.
Schlegelmilch, B. B. (2016). Segmenting Targeting and Positioning in Global Markets. In Global
Marketing Strategy(pp. 63-82). Springer, Cham.
Coca-Cola Global. (2018). Retrieved from http://www.coca-cola.com/