Segmentation, Target Market and Positioning of Coca Cola
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This article discusses the segmentation, target market and positioning of Coca Cola. It also covers digital marketing, branding, product and service decisions, pricing decisions, distribution and supply chain management, integrating marketing communications, and people, physical process and partnership.
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Running head: INTRODUCTION TO MARKETING Introduction to Marketing Name of the Student Name of the University Author Note
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1INTRODUCTION TO MARKETING Segmentation, Target market and positioning Coca Cola, in general, does not have a specific target market and they offer their products to almost everyone. However, the main customers of the company are the people aged between 12 and 30 (Coca-cola.com, 2019). They always look to expand their market by development of new products. The different brands of the company are always successful in reaching the customers. However, the people with busier lifestyle and the young people who are addicted to such things are the primary consumers of their products. The target markets are also the students of schools and colleges and their families. The total age segments of the products of Coca Cola are mainly the people are between 18 and 25 in some countries (Coca-cola.com, 2019). The positioning of Coca Cola lies within the world soft drink market. The company sells all of their products in around 200 countries all over the world (Armstrong et al., 2015).The tagline‘think global, act local’has been very effective for the company to sell their products. Digital marketing and social networking The digital marketing process is one of the most effective facts that Coca Cola has embraced to sell their products and develop their marketing strategies. The young consumers of the company always favor the exposure in the social media. This is why the social media has always been an effective medium for the company and their selling strategy. They have also taken some motivating digital marketing campaigns that have impacted positively on their sales. CocaColaisalsoverymuchactiveinthesocialmediaandtheirdigitalmarketing advertisements have drawn the attention of their young customers indeed (Armstrong et al., 2015).The recycling-based digital advertisement called the‘Love Story’has indeed attracted the attraction of their young customers. They also strive to take the opinion from their consumers on
2INTRODUCTION TO MARKETING how they can put their efforts in a better manner and be successful in their quest to overcome the difficulties in some regions of the world like African countries (Coca-cola.com, 2019). The power of branding Coca Cola is a brand that was born in the United States of America but they have turned global in a very short time (Coca-cola.com, 2019). Their advertisements have made the company very famous in all over the world. The branding of the company’s products are very much important to gain the highest benefits. They have recently launched the program by which they have created a ‘common identity’ for all the variants of their products (Armstrong et al., 2015). Coca Cola has often used the classic logo of theirs so they can send the message to their customers that irrespective of adding sugar or no sugar; their product quality would always remain the same indeed. Coca Cola always sets to prefer the less complicated branding style so the consumers can understand their offerings to their customers (Coca-cola.com, 2019). The brand has used the script style font in the crisp white. It is in contrast with the crimson red background (Cross, Belich & Rudelius, 2015). Product and service decisions The products and services of Coca Cola are designed for excellence in the world and their products are probably the best according to the quality. They have always designed their products as per the needs of their consumers (Cross, Belich & Rudelius, 2015).The products with no sugar or less calories have been produced for the people who suffer from diabetes or age related syndromes. The low calorie soft drinks will prevent the people from the diseases. Some of such products are Dasani, Sprite, Powerade, Minute Maid, Fanta, Coca-Cola Zero, Diet Coke and others. They provide their customers with more than 19 billion servings in different types of
3INTRODUCTION TO MARKETING products indeed (Coca-cola.com, 2019). The company provides such products and services to their customers so they can keep the balance in their caloric intake and the physical activities. It must be mentioned in this regard that the Coca-Cola Zero has been one of the most significant beverages that has become quite successful in their quest to become the world’s best beverage and soft drinks producers. Thus their services and products are considered as their main success factors (Hassan & Craft, 2012). Pricing decisions The pricing strategy of the company has been very helpful to gain the attractions of their customers. They prefer the price of their products within the limit of the consumers and according to the economic situation of the countries. The process should be set as per the demands of the target markets of the company. The pricing strategy of the company is believed to be better than all the competitors of the company. In some regions like African countries they obviously cannot keep the prices of the products too high because of the poor economic conditions of the country (Hassan & Craft, 2012).The company likes to sell their products through the direct selling and indirect selling process. These are the two primary distribution channels for the company (Ryan, 2016). Distribution and supply chain management As discussed above the main distribution channels for the company are direct selling and indirect selling. Their supply chain system is also very strong in all the regions all through the country (Kapferer, 2012).In the direct selling process the company sends their products to all their showrooms and shops by using their own transport system. This proves that their supply chain and logistics system is very much strong and effective. They use almost 550 vehicles to
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4INTRODUCTION TO MARKETING supply their bottles of soft drink to their shops (Ryan, 2016).In the indirect selling process, they have also employed some agencies and whole sellers that would send their products to the shops. The company always focuses on the sustainability of their supply chain so they can get the highest benefits from their customers. They use the advance technologies to support their supply chain management and logistics (Tanwar, 2013). Integrating marketing communications The company Coca Cola has been very much efficient in applying their integrated marketing communications. The IMC strategies of Coca Cola are considered as an ideal one in this context. Some of the strategies they use as their IMC strategies are the TV advertising, banner ads, methods in mass media and print advertising (Jobber & Ellis-Chadwick, 2012).The adverting method is one of the basic methods for doing the marketing in the world and their ways of promoting products have been very much efficient in this context indeed (Hugos, 2018). They have also presented some made some advertisements throughout their history that have some significant impacts on the culture and the entire society. Apart from that the packaging design of the company has been quite impressive and it has contributed to the IMC strategy of the company in a big way. The use of the social media and rapid developments of science and technology, they have overtaken their competitors in a long way (Christopher, 2016). People, physical process and partnership The company has a reputation in engaging with the culture and community in different manners. This is why their impression in the community has been much positive. They have made partnerships with many health and social organizations that has been helpful for them to gain the faith of their customers (Jobber & Ellis-Chadwick, 2012).They have recently focused
5INTRODUCTION TO MARKETING on the health and well being of the customers. This is quite inspiring for the customers to believe in their products. The company has also committed themselves to the challenge of obesity among individuals. Thus their initiatives for the well-being of the people have been quite appreciable in different manners.
6INTRODUCTION TO MARKETING References Armstrong, G., Kotler, P., Buchwitz, L. A., Trifts, V., & Gaudet, D. (2015). Marketing: an introduction. Christopher, M. (2016).Logistics & supply chain management. Pearson UK. Coca-cola.com. (2019). Coca-Cola Global. Retrieved fromhttps://www.coca-cola.com/global/ Cross, J. C., Belich, T. J., & Rudelius, W. (2015). How marketing managers use market segmentation: An exploratory study. InProceedings of the 1990 Academy of Marketing Science (AMS) Annual Conference(pp. 531-536). Springer, Cham. Hassan, S. S., & Craft, S. (2012). Examining world market segmentation and brand positioning strategies.Journal of Consumer marketing,29(5), 344-356. Hugos, M. H. (2018).Essentials of supply chain management. John Wiley & Sons. Jobber,D., &Ellis-Chadwick, F. (2012).Principlesand practiceof marketing(No. 7th). McGraw-Hill Higher Education. Kapferer, J. N. (2012).The new strategic brand management: Advanced insights and strategic thinking. Kogan page publishers. Ryan, D. (2016).Understanding digital marketing: marketing strategies for engaging the digital generation. Kogan Page Publishers. Tanwar,R.(2013).Porter’sgenericcompetitivestrategies.Journalofbusinessand management,15(1), 11-17.
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