Stp 1x2i3y

STP Market segmentation: •

Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes. In evaluating different market segments, a firm must look at three factors:

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Segment size

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Segment growth

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Segment structural attractiveness and company objectives and resources.

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There is no single way to segment a market. The market has to try different segmentation variables, alone and in combination, to find the best way to view the market structure.

Target Marketing: •

This is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.

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After evaluating different segments, the company must now decide which and how many segments it will target, because buyers have unique needs and wants, a seller could potentially view each buyer as a separate target market. Ideally, then, a seller might design a separate marketing program for each buyer. There are three types of market segments.

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Undifferentiated marketing. (Mass Marketing)

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Differentiated marketing. (Segmented Marketing)

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Concentrated marketing. (Segmented Marketing, small segment(

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Coca cola servers its products using mass marketing technique, which obviously falls in undifferentiated marketing, and undifferentiated marketing means no segmentation, but there are minor factors on which we can say that the coke segments its products and then targets the customers somehow. These factors are as follows.

TYPE

Segmentation

Targeted Segment

Geographical

country

Urban, suburban

Demographic

Age

15-19,20-34,35-49

Gender Income

Male , Female Middle /High

Psychographic

Education Social class

Educated Middle and High Class

Behavioral

Occasions

Regular occasion

Benefits

Convenience ,Health, slim

Status

making ,brain energy Non-, first time

Usage rate

Heavy s

Loyalty status Readiness stage

medium , strong intended to buy

Attitude towards

Positive, enthusiastic

product

Positioning •

The way the product is defined by consumers on important attributes, the place the product occupies in consumer minds relative to competing products.

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'Coca-Cola's' brand personality reflects the positioning of its brand. Positioning is in the mind of the consumer and can be described as how the product is considered by that consumer. When researching the positioning of a product, consumers are often asked how they would describe that product if it were a person. Coca cola has positioned itself as a part of their daily life. This affinity between the brand and the consumer leads to a high degree of loyalty and makes the purchasing decision easier.

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Coca Cola has been successful by using Unique Selling preposition as “Live the coke side of life". Cole basically associates this brand with emotions and joy. We name of Coke comes into mind the first thing comes into mind is fun and entertainment.

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Due to the intense competition between Coca and Pepsi, Coca provides more for same, more for less & same for less. As they are giving their customers more benefits for same price

and also more benefits for less price with respect to different packaging sizes on special occasions

Strengths: •

Leading brand value and a strong brand portfolio

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Large investments in brand promotions

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sells its products in more than 200 countries

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Company also owns bottled water production and still

beverage facilities as well as a facility that manufactures juice concentrates. •

The Company has a strong and reliable distribution

network. The network is formed on the basis of the time of consumption and the amount of sale yielded by a particular customer in one transaction •

Strategic alliance with McDonalds as McDonalds

exclusively sells Coca Cola as the only carbonated drink in its stores Weaknesses •

Low market share of Dasani bottled water ,one of Coca-

Cola products and low market share of the new entrant into the market Cappy Juice •

Low awareness by target customers that Cappy juices

and Dasani are Coca Cola Products

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Coca Cola core benefits don’t fit into new trends , there are new trends to focus more on being trends not only towards memory

,intelligence

natural, healthy ,new

boosting body and brain but also ,lowers

stress

and

depression

accordingly RB seems not to be appealing to the next generation •

2nd place in market after Pepsi which dominates the market largely

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Lack of social responsibility actions and campaigns that enhances the company's image in Egyptian market

Opportunities •

Increase in the percentage of the target market within the Egyptian population due to the high birth rates and the low death rates

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Marketing researches shows that Middle East and Africa shows the largest growth of energy drinks consumption 255% 2007 – 2011 ,mainly by young customers who may choose not to drink alcohols due to social and religious reasons in café’s and music venues

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The new cultural shift towards weight loosing and having in shape bodies would be an opportunity

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The new cultural shift especially of guys towards body building and going to the gyms would increase the demand for energy drinks newly introduced by Coca-Cola

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The Egyptian consumers are price sensitive ,introducing a high quality product compared to competitors with slightly lower prices would be very effective

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The Egyptian consumers are size sensitive ,introducing a larger pack relative to competitors with lower prices would be a very effective

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Experiences create word of mouth which to a great extent positively affect my acquaintances (relatives –friends – colleagues) buyer decisions

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The increasing demand of the Egyptian customers to soft drinks, juices, etc… •

High capital requirements to enter the industry by

new entrants and competitors

Threats •

Health concerns- expected tougher rules from

government on high caffeine content.

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Consumer awareness of health and well being- people

may start to drink other alternatives as it is associated with healthier life style. • •

Numerous substitutes

High level of intensive competition with energy drinks and other carbonated soft drinks producers as well as juices Pepsi, Coke, Schweppes, Johanna juices

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Increasing health and hygiene awareness among Egyptians has greatly increased sales of fruit juice products for health watchers as well as bottled water and sparkling water

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Experiences create word of mouth which to a great extent negatively affect my acquaintances (relatives –friends – colleagues) buyer decisions in case of initial bad experiences using the products

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Low switching costs by buyers

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Severe competition from strong competitor Pepsi,Shewppees ,Fayroouz and Birrel in carbonated water products ,from Juhayna ,Rani,Maraaei ,Cesar in juices market ,and from Nestle ,Baraka and Aqua Fina in bottled water ,market