Show to the world, Coca-Cola!!!

p1                               (Baxter 2014, p.1)

Customers in the world recognize Coca-Cola as the famous soft drink. Coca-Cola can be sold in every spot of business such as restaurant, minimarts, and supermarket with reasonable price to purchase. This wide market becomes a consequence for increased net profit of Coca-Cola Company from 2014 to 2015 by $253,000 (Nasdaq 2016). To increase this profit, it is important that the difference of customers’ lifestyle must be concerned by Coca-Cola Company to produce different types of Coca-Cola which is a part of market segmentation, target and positioning (STP) for Coca-Cola.


Market segmentation is subdividing a whole market into different segment units (Armstrong 2012, p.187). There are many types of market segmentation that can be used companies to reach wide markets. Here, Coca-Cola uses customers’ behavior as part of market segmentation through customers’ behavior. For example, Coke Diet is used for customers to lose their weight (Owen 2016, p.1). This market segmentation requires British customers to use knowledge about Coke Diet ingredients that may effect on diet. India is another market segment for Coca-Cola Company that customers concern about sugar level. This problem leads Coca-Cola Company to release Coke Zero in 2014 and Venkatesh Kini, directors of Coca-Cola for India believes that there are many Indian people move to healthier lifestyle by drinking low-calorie drinks such as Coke Zero (Mitra 2016, p.1).


(Hobbs 2016, p.1)


After Coke Diet is determined by market segmentation, Coca-Cola Company must determine the market target for Coke Diet. Market target is a set of customers which shares similar demand or needs of products (Armstrong 2012, p.197). In London, Coca-Cola Company set the target for Coke Diet who are women which age in a range between 20 to 30 years old who are very chaotic in their life (Sandison 2007, p.1). This market of young British people cannot be separated by the role of advertisements. Zmuda (2011, p.1) writes that according to Ms. Bayne, customers who are aged between 20-29 years old are the main target because the Coke Diet needs to be a brilliant advertisement. Because young customers become the main target for Coca-Cola, it is not a surprising story that majority of Coca-Cola customers are young between 20-35-year-old and any advertisements always use young models to promote Coca-Cola.


Positioning becomes the last step for new products to enter the new market. Positioning can be described as a stage for the new product to build the brand before given to target market (Sharp 2013, p.221). Coca-Cola creates a slogan, ‘taste the feeling’ as part of a repositioning of this existing brand which called ‘One Brand’ (Roderick 2016, p.1). Furthermore, this repositioning of Coca-Cola also classified as totally rebranding after Coca-Cola suffers a decreased profit. As an evidence, Roderick (2016, p.1) writes that the profit for Coca-Cola Company decreases for the first semester of 2016 by 50%; one year after releasing ‘One Brand’ Coca-Cola marketing strategy. On average, the profit of Coca-Cola Company for Europe region has been decreased by 7% into $1.7 billion and operating loss can be reached into $722 million (Hoobs 2016, p.1). Furthermore, by releasing new positioning which is ‘Taste the Feeling’, the profit of Coca-Cola Company can be raised (Hoobs 2016, p.1).

What can we learn from Coca-Cola experience regards to this topic?

After we discuss very detail about market segmentation, targeting, and positioning of Coca-Cola in the market, we can reflect that it is a complex process for every company to produce a new product. Knowing the market segment is a basic step that must be passed for aiming increasing efficiency and effectiveness in marketing for a new brand in the market. After the market segment is determined, the market target must be discussed by assessing a specific group of customers that taken from market segment. This means that from a whole group of market segment, the company can divide the market segment into different of the market target by different categories such as age and gender. Market positioning is the last step of marketing. This positioning can be found in every advertisement through who are the models and when they use this products or brand. This marketing strategy makes Coca-Cola is known by worldwide customers.

Reference List

Armstrong, G, Adam, S, Denize, S & Kotler, P 2012, Principles of Marketing, Pearson, Frenchs Forest, NSW

Sharp, B 2013, Marketing: theory, evidence, practice, Oxford, South Melbourne, Victoria


Name: Hansel Anggie Susanto

ID: 213042054

Username: hanselsusanto



Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s