Target Market Paper
Coca-Cola Company uses the principle of responsive marketing. The Company targets customers between the ages of 18- 24 years who consist of about forty percent of the world population. The target market is based on the youthful age since it is considered to be a cool drink for male and female teens. The fact that Coca-Cola sponsor’s games including football matches and leagues; it proves that it is aimed at the youths who are likely to engage in sports. These helps define that the target market for the Coca-Cola brand is for the younger people (Ries & Trout, 2006).
Coca-Cola Company uses market segmentation as it marketing approach. The Company’s primary consumers are the younger people where this is demonstrated during advertising. Coca-Coal Company has other range of Coke drinks including Coke diet which targets individuals between the ages of 25 to 39. There is the PowerAde which is for those who engage in sports while Winnie the Pooh sipper juice Drink is for children aged between five to twelve years (Kjellberg & Danmark, 2010).
Marketing is not mainly based on gender even tough slightly more women than men consume the Coca-Cola brands. People who have a busy lifestyle and mobile is targeted while marketing the brand. Occupation is another consideration when marketing Coca-Cola brands where students are usually targeted and people who are family oriented. The drink targets people of the upper and lower socio-economic class. The nature of the Coke drink is portrayed as for individuals that love fun and entertainment (Hays, 2004).
The Company has been using the marketing mix where for the Coca-Cola products from 1906 to 1925 a six pack of Coca-Cola retailed at one US dollar. There is the use of massive campaigning strategies and promotions where consumers are given free shirts, drinks and calendars. There is the use of the psychological marketing and advertising strategy to create awareness of the brand by creating a half logo. This half logo will activate people’s memory together with Coca-Cola Company slogan (Kjellberg & Danmark, 2010).
Coca-Cola Company has over fifty nine percent share in the industry of soft drinks in the world market. This means that the Company has a vast market, and they focus to increase it day by day. Globally, the units sold by the have continually increased over the past ten years, and this is a positive trend for Coca-Cola Company. A new trend in marketing is an online marketing which is growing fast in the Company (Ries & Trout, 2006).
The Company uses many market segments as a targeting strategy, and this are also known as marketing mix. Coca Cola Company has more than four hundred brands and over three thousand product mix.
The Company uses geographical segmentation where it targets ethnic groups, age groups and people of various lifestyles. There is the oasis juice for the young working adults, Coca Cola Zero for those who want a healthy lifestyle but good taste and Diet Coke. Minute Maid targets both kids and adults while Powerade for sportspersons. During summer, the Company records higher sales than during winter. It thus implies that the Company largely targets the hot parts of the world (Kjellberg & Danmark, 2010).
Coca-Cola Company uses demographic segmentation where there are drinks for all the age groups, targets people of all genders. Income is also considered in the Company’s brands where the returnable glasses are for the low income earners while tins are for the high level earners (Hays, 2004).
Psychographic segmentation uses brand conscious to target consumers. People tend to consume the company’s brands since they are aware of the beverage drinks. The Company’s products are mainly purchased by the middle and high income earners across the world. Another reason as to why people purchase the brands is because of the Company’s social responsibility and ethics. Market segments have helped the company improve its products and services. Creation of value to the customers has helped convince many people to buy the products (Kjellberg & Danmark, 2010).
Marketing mix is used by Coca-Cola Company for promotion and the development of the Company’s brands. The brands are distributed in various regions by the bottlers in retail shops and restaurants. Strategic distribution networks allow identification of partners, and this has a competitive advantage. Conveyance of the product needs to be eased to increase consumer’s loyalty (Hays, 2004).
Good public relations by the Company help keep the customer demands in check. Pricing strategy of Coca-Cola Company is based on value and the competitive nature of the market. Because of the Company’s strong brands, there is an allowance for price drops in its various products. To maintain the Company’s position in the globe, there has to be promotions including advertisements.
SWOT Analysis of Coca-Cola Company
Company’s strength is that it the leading brand in soft drinks and has many market segments. Weaknesses are that there are poor performances in North America, negative publicity and decline in cash from operating activities. Opportunities are arising from the increased consumption of bottled water and the increasing Hispanic population in the United States. Threats come from intense competition and dependency on bottlers (Ries & Trout, 2006).
Marketing strategies allocation
Pricing, Product quality, place of selling and distribution and promotion are equally important for the success of Coca Cola Company. Product quality and promotion appear to be very vita in the market, and each of them would get an allocation of 40% each. Pricing and distribution would get each 20% of the cash. Promotion would emphasize on the fact that tit the best brand in the world and this make the brand unique (Kjellberg & Danmark, 2010).