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Market segmentation is not a simple task to carry out in a competitive environment. However, Coca Cola has managed to carry out market segmentation in a better way through the best use of marketing tools. The first criterion that Coca Cola has used in its marketing segmentation is through the criteria of customer demographic analysis. For an organization to consider a group as a segment; there is need to classify them under homogenous and heterogeneous groups.  The second criterion is through the analysis of the existing competition on a given market segment.

The secret weapon in the entire process of market segmentation is taking a keen cognizance of the needs of the particular segment of the market. The criterion that has been employed by Coca cola in its market segmentation include targeted advertising, new product development and brand differentiation. Despite the fact that Diet Coke brand and Coca Cola Lite are same products, Diet Coke brand was considered girly or feminine in the view of male consumers. This led to the development and branding of a new brand of Coke product that was then considered “masculine” by male consumers. Coca Cola launched the Coke Zero that was predominantly targeted not only at the male segment of the market but to those males who were health conscious.

The differences in positioning, product, price, distribution or communication has been based on the demographics of the targeted market such as size of the market segment, level of affluence, and the differences in the brands that divide the segments. The advantage of advancing a single brand is that company has the capacity to pool all its resources towards the promotion and success of the particular brand. This can in return promise the highest returns in marketing investments and branding initiatives. The Coca Cola brands I have chosen in this assignment - Diet Coke brand and Coca Cola Lite are some of the best performers in the soft drink market in the entire world.

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