CUSTOMER SEGMENTATION STRATEGY: THE COCA COLA COMPANY

Customer Segmentation Strategy: The Coca Cola Company

Customer Segmentation Strategy: The Coca Cola Company

Introduction

Customer segmentation is a significant component of the contemporary global business environment. In the current globalized business environment, the level of competition for the companies has enchained drastically, due to which they have to develop the relevant customer oriented strategies to be able to attain a competitive advantage. The relevant customer segmentation strategy allows these companies to focus on the adequate target market and develop the ideal organizational strategy. The success of the modern company is based on highlighting the various demands of the global customers and then meeting those relevant demands. The management of the companies have realized that the marketing strategy of the can be relatively uniform on the global scale; however certain alterations have to be made to the product range. The consistency of the marketing strategies on the global scale helps the company to utilize the established brand value (Douglas and Craig, 1995, pp. 5-6).

Literature Review

According to Jeannet & Hennessey, (1992) there are several components of the customer market which the management of the company has to focus on. The customer segmentation is developed on several aspects which include; demographics, psychographics, and geographic factors. On a holistic level the segmentation strategy has to be based on the customer psychographic and the demographic factors; the geographic segmentation is also highly effective in nature. It is true that the globalization force has caused the majority of the global customer markets to amalgamate however there still exist several unique attributes among various regions of the world. In certain parts of the world there are customers who possess similar attributes and consumption behaviours. In this context the geographic segmentation strategy can be identified as one of the most important component of the organizational strategy through the relevant segmentation of the adequate geographic region the company can seek to target the relevant customers, who possess the relevant attributes. Since the majority of the people in a given society have similar psychographic attributes, the companies can develop their segmentation strategy essentially on the geographic aspects. However in the context of the contemporary business environment the psychographic aspects of the segmentation strategy are now replacing the traditional geographic approach.

The Coca Cola Brand Image 'Global Context'

The primary component of the Coca Cola rand image is based on the principle of fun and high quality standards. The Coca Cola company products are developed through a highly systematic production system so that the premium quality of products is provided to the end customers. This ensures that with every sale of the products the branding activity is performed, where the customers form a positive image of the company. The Coca Cola bottle itself is a form of marketing strategy for the company, as it represents a link to the traditional values of the company. The traditional Coca Cola bottle design has remained relatively unchanged for a vast period of time, and people still can recognize the bottle from the ...