Coca-Cola Segmentation, Targeting and Positioning (2023)

Feed your curiosity on how Coca-Cola continuously provides premium quality products by exploring its marketing principles effectively.

Coca-Cola Segmentation, Targeting and Positioning (1)


Coca-cola is generally tagged as the 'soft drink' of the world (Bell 2004). The company started selling its drink in 1886 when Dr. John S Pemberton charged his customers five cents per bottle. Since then, the brand has become the leading soft manufacturer globally with over 700,000 employees with more than 500 brands.

The company has been very successful in its campaign that it has solidified its status to be one of the icons in American culture. As it continues to expand globally, Coca-Cola partnered with several bottlers worldwide to go over all the processes of every product.

Behind the company's success is a marketing approach that typically guides Coca-Cola to market its products. Most companies generally classify their marketing strategies into different categories. As with Coca-Cola, market segmentation, targeting, and positioning are three essential factors that helped the company effectively cater to its target customers.

The subsequent chapters of this article will analyze these three variables in Coca-Cola's marketing strategy. This can also serve as a guide for startups to formulate their marketing approach.

Coca-Cola Segmentation, Targeting and Positioning (2)

Market Segmentation of Coca-Cola

Market segmentation refers to classifying potential markets in segments or groups with common needs and responding similarly to a specific marketing action. This approach allows firms to target various categories of customers that perceive the absolute value of particular products and services variable from one another.

Coca-Cola's market segmentation focuses on four various elements, namely geographic, demographic, psychographic, and behavioral. Coca-Cola might have originated from the United States, but it has expanded its brand to various countries across the globe over the years. The company's geographic segmentation aims to drive the market into different geographical units, including cities, regions, and neighborhoods. While Coca-Cola might be focusing on urban and suburban areas, it also ensures a countrywide product distribution network. This is in the realization that as the company expands, there is a demand from those in rural areas.

Meanwhile, the demographic segmentation of Coca-Cola is divided into sub-segments based on various variables like age, occupation, family life cycle, race, religion, generation, social class, and nationality. These variables are the most popular basis of Coca-Cola to distinguish customers groups. The psychographic element of the Coca-Cola market segmentation is categorized into different groups based on lifestyle, personality, or values.

(Video) Coca-Cola Customer Marketing Segment Video

The behavioral variable is the final element in Coca-Cola's marketing segmentation. It generally focuses on the customers' knowledge of, use of, response, and attitude towards its products. Most marketers treat the behavioral variables as excellent starting points for formulating market segments.

Coca-Cola Segmentation, Targeting and Positioning (3)

Targeting of Coca-Cola

Coca-Cola's targeting strategy is broader, not only because of its global presence in the market but also with the several products that they provide. There is also the need to satisfy various customers, ranging from average to health-conscious ones. The primary target of Coca-Cola is younger customers within the age bracket of 10-25 and a secondary market composed of people aged 25-40.

The company targets the market that desires an intense flavor with their regular cola drinks in terms of taste. Meanwhile, diet cola drinks and their variants target those customers that are health conscious. Coca-Cola campany has also expanded its product to non-cola beverages to target those not fond of drinking its regular cola drinks. A Coca-Cola product such as Sprite is specifically designed to target teens and college students, while others target the young working group.

Positioning of Coca-Cola

Positioning tackles how products will stand with the competition, which offers the same products and services in the market and customers' minds. An excellent positioning transforms a product into a unique one, making customers consider using it. In a marketplace with various cluttered products showcasing similar benefits, an effective positioning strategy makes the product stand out among others and creates curiosity from customers.

With Coca-Cola, it positions its products as thirst-quenching and refreshing. The products they offer are said to bring joy to its target market. The drinks and other products from Coca-Cola are also associated with having a great time with family and friends while enjoying daily life. Additionally, the company also markets its products consistently and of premium quality.

For those looking for high-quality drinks, one of the names that will surely come into their minds will be Coca-Cola. The company has an extensive selection of refreshments; each offers a positive experience for consumers. In contrast to other beverage brands, Coca-Cola brands itself as a product that provides happiness and positive in customers' lives. Ultimately, the company's primary focus is to cater to the needs and preferences of its global customers.

Coca-Cola Segmentation, Targeting and Positioning (4)


The Coca-Cola market segmentation, targeting, and positioning variables are comprehensively described above. You can refer to this table below for a simplified list of how the company categorized these variables and principles.

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Market Segmentation




-Thirst-quenching and refreshing products

-Promotes happiness and positivity for every drink











Males and females

Life-cycle stage

Bachelor, singles not living at home, newly married couples, Full Nest I and II


Average, above average, high-income earners


Professionals, students, employees


Degree of loyalty

Hard-core and soft-core loyals

Benefits sought

Refreshment, satisfaction of habit, enjoying the good taste, spending time with people

User status

Regular users


Easygoing, ambitious, determined


Social class

Working, middle, and upper classes


Explorer, aspirer, succeeder

Mind Map

Now that you have categorized each principle's components in Coca-Cola's marketing strategy, presenting it through a diagram like a mind map can be ideal. A mind map allows viewers to understand better the connections of the elements of your marketing approach. See the example below.

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Key Takeaways

Suppose you are to open your beverage store, Coca-Cola's marketing approach can be helpful. The company might be a giant one, but several principles are also applicable for startups, looking at its marketing treatment. It is just a matter of localizing each variable to fit into your brand's marketing approach. The diagram and discussion above can also be helpful if you are studying marketing and plan to create your first marketing strategy using marketing segmentation, targeting, and positioning principles.

It can also be beneficial to organize all the components through mind mapping software, similar to what was illustrated above. EdrawMind is a user-friendly mind mapping tool that offers a straightforward process for creating mind maps online. If you want it to look playful, you can even put images, shapes, and other elements to your diagram. The interface is easy to navigate, giving first-time users ease. If you find it a handful to make your mind map structure, you can use pre-built templates of the Market Segmentation and STP Analysis. The templates will provide you with a framework, and all you have to do is input the information on the diagram. The software is also very flexible as users can either work on their mind maps through a browser or from their desktops.



What is the target market segment of Coca-Cola? ›

Targeting of Coca-Cola

The company targets the market that desires an intense flavor with their regular cola drinks in terms of taste. Meanwhile, diet cola drinks and their variants target those customers that are health conscious.

What is Coca-Cola's positioning statement? ›

Coca-Cola Positioning Statement:

Unlike other beverage options, Coca-Cola products inspire happiness and make a positive difference in customers' lives, and the brand is intensely focused on the needs of consumers and customers.

Which form of market segmentation is Coca-Cola using when they look at the values attitudes and lifestyle of their target market? ›

In psychographic segmentation, Coca Cola buyers are divided into different groups on the basis of lifestyle or personality or values.

How do you write segmentation targeting and positioning? ›

To use the model, start by segmenting your market into groups. Next, choose which of these you want to target. Last, identify how you want to position your product, based on the personality and behavior of your target market.
STP stands for:
  1. Segment your market.
  2. Target your best consumers.
  3. Position your offering.

What is Coca-Cola's marketing strategy? ›

Coke aggressively markets its product lines through advertising across multiple mediums and channels, including TV, online ads, sponsorships, etc. Coca-Cola's sponsorships include NASCAR, NBA, the Olympics, American Idol, etc.

How does coke use behavioral segmentation? ›

So how is Coca-Cola using behavioral segmentation? Loyalty Status – The company is constantly measuring loyalty using social data and data gathered from the activity on Coke's website. Occasions – Coke puts a lot of focus on understanding the most popular occasions for consumers to drink coke.

What is the purpose of Coca-Cola advertisement? ›

The Coca-Cola commercial on the other hand is showing how happy you can be if you drink their product. Stating that only their product will achieve the desired solution. Consequently, creating an emotional connection between the buyer and the product's effect.

What is geographic segmentation of Coca-Cola? ›

The Coca-Cola Company's operational structure includes four geographic operating segments: Europe, Middle East & Africa; Latin America; North America; and Asia Pacific.

What is market positioning with an example? ›

Market positioning refers to the process of establishing the image or identity of a brand or product so that consumers perceive it in a certain way. For example, a car maker may position itself as a luxury status symbol. Whereas a battery maker may position its batteries as the most reliable and long-lasting.

How can market segmentation help a business attract customers? ›

Marketing segmentation is based on the theory that people who have similar characteristics have similar unmet needs. Thus, people will respond similarly to a brand's marketing efforts, increasing its effectiveness. With market segmentation, you can: Consolidate and sharpen customer pain points.

How using segmentation could more effectively reach customers? ›

Dividing up your customers into distinct segments makes it possible to target your content more effectively. You won't be wasting time and effort on generalized content. You'll be able to distinctly identify the values and dreams of a specific market segment and show them why your product matters for their lives.

How do you identify market segments and targets? ›

Market segmentation has several steps you need to follow: Find your customers according to what they need and want. Analyse their usage pattern, likes and dislikes, lifestyle, and demographic. Note the growth potential of your market as well as your competition and the potential risk they may represent to your company.

What is Starbucks positioning statement? ›

So, Starbucks' positioning strategy was 'Authentic Coffee, Great Experience and Quicker Delivery'.

What is a brand positioning statement? ›

A brand positioning statement outlines exactly what your company does, for whom, and what makes you different. The idea behind it is to create a unique niche for your brand in the minds of consumers within your category.

What is Nike's positioning statement? ›

That's Nike's brand essence, and it's been their positioning since their inception. It's the reason the famous tagline "Just Do It." holds so much weight, and why the brand promise, "To bring inspiration and innovation to every athlete in the world.” is still as true today as it ever has been for the brand.

What is Amazon's positioning statement? ›

For example, take a look at Amazon's positioning statement: "Our vision is to be the earth's most customer-centric company; to build a place where people can come to find and discover anything they might want to buy online."


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