Report: Coca-Cola Amatil Market Segmentation and Targeting Strategies

This report provides an analysis of Coca-Cola Amatil's market strategies in the soft drink industry. The report begins with a critique of a perpetual map analyzing the caffeine and sugar levels of various soft drink products, including Coca-Cola, Pepsi, and Fanta, and their appeal to different demographic groups based on age and gender. The core of the report focuses on market segmentation, defining segmentation variables such as age, gender, lifestyle, and income that are useful to Coca-Cola Amatil. It differentiates between primary and secondary segmentation, discussing how the company targets the youth for its coke brand as a primary segment and identifies future market opportunities. The report then explores various targeting strategies, emphasizing differentiated marketing as the most appropriate approach for Coca-Cola Amatil, highlighting its ability to generate sales volume and target a larger market share. The analysis concludes with a discussion on the benefits of differentiated marketing, supported by references to relevant academic literature and industry sources.

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Coca-Cola Amatil company

Perpetual map for soft drinks
i
High levels of
caffeine
Low in sugar High in sugar
Low levels of
caffeine
Pepsi light
Fanta
Coke zero
7- Up
Pepsi
Coke
Diet coke
Pepsi max

Critique
• The map analyses two products attributes that is level of caffeine and level of
sugar
• 7-up is seen to have a relatively low level of caffeine and moderately low in sugar.
• Fanta has high levels of sugar and a moderate amount of caffeine which is
preferred by children under 15 years
• Coke and Pepsi both have high levels of caffeine and sugar a combination most
preferred by men between 15 and 30 years
• Diet coke, Pepsi light, coke zero and Pepsi max all are low in sugar and have high
levels of caffeine. This products are most preffered by females between 15 and 30
years.

Segmentation variables
definition
• Market segmentation involves breaking down the target
audience
• A companies identified the best and most suitable segment
to enter in
• The characteristics of customers a company would use in
segmentation is related to the strategy used
• Segmentation variables determine define the specific
customer segments with the same qualities

Segmentation variables useful to
coca-coal Amatil
• Market segmentation enables a business to make more
personal campaigns in marketing.
• Some useful marketing variable for Coca-Cola Amatil are;
Age- group
Gender
Lifestyle
Income

Primary Segmentation
• The primary segment contains customers who are willing to buy now
• This segment gives a business the best chance to sell
• For Coca-Cola Amatil, its primary segmentation are the youth for coke brand
• Youths tend to use soft drinks more than the older generation
• Therefore Coca-Cola Amatil promotions would consider age of buyers
• Females prefer diet coke and coke zero unlike men who prefer the original
coke
• People with a higher kind of lifestyle will take more soft drinks than people
living on a lower lifestyle

Secondary segmentation
• The secondary segment contains future primary buyers
• This segment can be identified by conducting a market research on
what customers would prefer in future
• For example Coca-Cola Amatil needs to make a drink with low
levels of caffeine and low sugar levels for the age group of 30-50
years.
• This is a future market for the company because they would like to
still keep their customers who are between 15-30 years when they
get to 30-50 years age group.

Targeting strategies
• A targeting strategy involves selecting and identifying the potential customers whom the business wishes to sell
to through market evaluation by exploring the different segments
• The primary purpose of conducting evaluation of market segments is to determine which segment to enter
• Selecting markets is made on the choice of which and how many markets one company can competitively be
involved in.
• Companies have to make choices on one or some few segments or whether they will cater for the mass segment
• The strategy used determines the companies marketing mix to be applied
• The four generic strategies are;
Undifferentiated targeting
Differentiated targeting
Concentrated targeting
Customized targeting

Targeting strategy useful in Coca-
Cola Amatil
• The most appropriate targeting strategy for coke is differentiated marketing It is also known as the multi-segment
targeting
• The company recently celebrated 80 years since establishment in Australia through differentiated segmentation whereby
they targeted more on the youths (Roberts, 2018)
• It is also known as the multi-segment targeting
• Differentiated marketing identifies market target segments that the company can profitably serve
• The strategy involves development of specific marketing mixes unlike undifferentiated marketing
• The strategy takes identifies the different segments and exploits them by applying the most appropriate the marketing
mix for each segment
• It is appropriate because;
It has potential to generate sales volumes
It targets a larger market share
Economies of scale can be generated
Generates higher profits

References
• Baker, M. J. (2014). Marketing strategy and management. Macmillan International Higher
Education.
• Berthon, P. R., Pitt, L. F., Plangger, K., & Shapiro, D. (2012). Marketing meets Web 2.0,
social media, and creative consumers: Implications for international marketing
strategy. Business horizons, 55(3), 261-271.
• Roberts, J. (2018, September 24). Coca-Cola flips famous Kings Cross sign to celebrate 80
years Down Under. Retrieved from http://www.adnews.com.au/coca-cola-flips-famous-
kings-cross-sign
• Taken Smith, K. (2012). Longitudinal study of digital marketing strategies targeting
Millennials. Journal of Consumer Marketing, 29(2), 86-92.
• Sheefeni, J. P. S., & Kaulihowa, T. (2016) International Journal of Economics and Financial
Research.