Business Analysis

Coca-Cola Segmentation, Targeting, and Positioning

A detailed STP analysis of Coca-Cola

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The Coca-Cola Company has the status of being the leading soft drink manufacturing company in the world. It was founded in 1886 by Dr John S Pemberton and has grown from sales of nine drinks per day to becoming the leading soft drinks company. The giant company has more than 200 brands under its name, ranging from juice to sodas to drinking water to kombuchas and coffees.

The company operates in multiple countries around the world and employs over 700,000 workers. The marketing design of Coca-Cola has been very instrumental in making the company successful. Other companies outline their marketing strategies with a different approach. However, with Coca-Cola, the marketing strategy has centered around market segmentation, targeting, and positioning. This marketing framework has enabled the company to cater to its target customers with precise effectiveness, quality, and reliability.

The following discussion analyzes these three factors in Coca-Cola's marketing design. Since these facts have made Coca-Cola very successful, they can also be applied to startup companies for duplicate success.

Market Segmentation of Coca-Cola

Segmentation involves the process of sub-dividing population markets into groups or subdivisions with certain characteristics and needs. Segmentation cannot be underrated. It enables a company to know the various categories of customers and how they vary from one another. Knowing customers is the first way to create the customer avatar and target them with diverse products.

Coca-Cola's market segmentation is centered on four elements that include demographic, geographic, and psychographic elements.

Coca-Cola's geographical marketing segmentation is aimed at serving customers in numerous geographical areas that include cities, suburbs, and rural areas. Ideally, the company started in the United States, but geographical segmentation has ensured more penetration. Coca-Cola does not emphasize just the urban and suburban areas. The company employs a far wider marketing reach that has ensured that people in rural areas also get an unlimited supply.

Analyzing this demographic market segmentation shows that Coca-Cola has identified sub-elements of its target customers. It analyzes the factors that affect the attitude that a certain population has about Coca-Cola. These factors include a person's age, occupation or economic activity, race, religious denomination, lifestyle, social class, and nationality of the person. These sub-elements enable Coca-Cola to understand its different customer groups and adapt to their demands.

Coca-Cola analyzes the behaviors of certain market segments and gives products suited to that market. It is a form of action and reaction sequence. Coca-Cola gets to understand the customer attitudes and responds with a transformed portfolio of suitable products to meet those needs. Market segmentation is widely implemented by many marketing professionals like Coca-Cola.

Targeting of Coca-Cola

Targeting involves choosing specific groups identified as a result of segmentation, analyzing their preferences, and making products suited to them.

As a marketing leader, Coca-Cola has implemented targeting strategies to perfection. Coca-Cola aims to reach multiple customers at the same time using different beverages. The targeting strategy has involved Coca-Cola producing several products to suit the different needs, wants, and preferences. The target customers include young-age customers between the age of 10-and 25 years and the older generation customers within the age bracket of 25-40.

The different products target different customers. The regular glass-bottled cola has a strong taste and is meant for customers who love intense flavors with high sugar levels. Case example of Sprite that targets youthful customers. On the other hand, there are the sugar-free cola and the diet cola targeting customers who have health issues and are health conscious. Even more strategically, Coca-Cola has diversified into non-cola drinks like purified water for those who do not like the trademark cola beverages.

The Coca-Cola bottle design is also very unique to target the needs of the young people who love to be trendy. The company has incorporated pop culture as a targeting tool. It has used popular stars like Selena Gomes to attract and promote the company to lovers of pop culture. There was also the idea of 'play a coke' and the lyrics of Coca Cola journey in 2016. This targeting technique is aimed at instilling a sense of identity and closeness with the target market.

Positioning of Coca-Cola

Positioning involves choosing the most suitable marketing mix for the targeted customer segment. In every business, there are definite competitors. Positioning enables a company to stand out from the competitors offering the same product or service. Positioning makes a company unique in the eyes and minds of customers. This makes customers prefer and buy its products. 

Coca-Cola has the ideal multi-segment positioning strategy. Coca-Cola has positioned itself as the ideal beverage to quench thirst and refresh the body. This is usually shown by the video advertisement of people drinking and feeling instant refreshment. These marketing techniques display Coca-Cola as the drink for fun occasions between friends, family members, tired travelers, and people relaxing during a hot day. 

Even more strategically, Coca-Cola has positioned itself as a drink of premium quality. Pick any three people and ask them about the drink they value as high quality. The answer that reflects directly in their minds and mouths is most likely Coca-Cola. Anyone wanting to enjoy life's pleasure is instantly attracted to Coca-Cola through this positioning strategy.


The segmentation, targeting, and positioning in Coca-Cola has been extensively detailed above. The following table offers a tabular representation of the exact elements of this market segmentation.

Market SegmentationTargetingPositioning
Geographical market 

-Drink for fun loving people

-Quenches thirst instantly

-Refresh the body unlike any other drink

-Offers happiness in every gulp



-International too


-Urban areas

-Suburban areas

-Rural areas






Females too

Life-cycle stage

Teenagers living with parents

Bachelors who love having fun

Newly married couples

Mature people in their prime


Medium income earners

Above average earners

High-income earners


White-collar employers

Blue-collar workers


University/college Students

Young students

Degree of loyalty

Total loyalists

Upcoming loyalist

Benefits sought

Enjoying the strong flavor

Getting body refreshed

Fun time drink with friends

A habitual drink

User status

Regular Coca-Cola enthusiasts

New users

Health conscious users






Social class

Middle-class citizens

Young Dependents

Upper-class people






Coca-Cola Segmentation, Targeting, and Positioning Mind map

The tabular representation of each marketing element can still be presented in an elaborate mind map. A mind map is ideal as it enables an easier display of all the connected elements of Coca-Cola's marketing design. Let's dive into the company's mind map.

The company you want to analyze is Coca-Cola. Its entire marketing strategy is divided into three elements that are Market segmentation, targeting, and positioning. Marketing segmentation is divided into geographic, behavioral, and psychographic. Targeting refers to the customers who are targeted by Coca-Cola. They include people aged between 10-40 years, both males and females from different social classes. On the third aspect of positioning, your mind is drawn to the fact that Coca-Cola is branded as a highly refreshing, fun, soft, happy drink.

Key Takeaways

Coca-Cola has become the soft drink that we all love through its highly valuable marketing approach. The entire approach involves the elements of segmentation, targeting, and positioning. Each of these variables has been strategized to form an exquisite marketing design. The first part details the segmentation, targeting, and positioning based on demographic, psychographic, and behavioral factors. The follow-up table puts the factors in each perspective.

The marketing design in Coca-Cola is not limited to high-end or top-rated companies. The designs and approaches are also applicable in medium-scale companies as well as startups. Companies and even marketing students can use the explanations and diagrams above to craft their unique marketing strategies.

Coca-Cola Inc's report details the comprehensive analysis of the marketing and business approach of Coca-Cola. The report details the application of the segmentation, targeting, and positioning elements. Moreover, the report shows the table of how these elements are incorporated.

Download the Report in PDF

It is also beneficial to organize all PDF details through PDF mapping software, similar to how the above document was illustrated. PDF AGILE software is a user-friendly PDF-making tool that offers a complete and affordable solution for all your PDF needs. It has a user-friendly interface that is both easy to use and friendly even for novices.


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