Case Study on The Coca - Cola Company

History of Coca Cola began in 1886 when the curiosity of an Atlanta pharmacist, Dr. John S.
Pemberton, made him create a soft drink that had a very distinctive taste which could be sold
at soda fountains.

He made a flavored syrup, took it to his nearby pharmacy, where it was mixed with carbonated
water. Dr. John S. Pemberton’s partner was credited for naming the beverage “Coca-Cola” and
also for designing the trademark.

The Coca-Cola Company (NYSE:KO) is the world’s largest beverage company, refreshing
consumers with more than 500 still brands. The portfolio of the company features 16 billion
dollar brands including Sprite, Fanta, Coke Zero, Diet Coke, Minute Maid, Vitamin Water, Del
Valle, Georgia and Simply. Coca- Cola is the number one provider of ready to drink coffees,
sparkling beverages, and juices.

Coca Cola uses “Multi-segment” strategy meaning that the company has more than single
defined, market segment. This strategy helps the company to improve their products and
services, knowing what their customers need and innovate new sectors. They market the
products by selling it into more than one market, to know what their customers need. Coca cola
uses the consumer segmentation criteria and market into different groups.

If a company wants to run success business, they must know how to dissolve in different culture. Coca-
Cola knows people from different culture, using its innovation to mix different cultures and flavors
together to make new product (e.g. with the European launch of Jianchi, a new drink ).

SEGMENTATIONS

1. GEOGRAPHIC SEGMENTATION

INTERNATIONALLY: Coke segments its products country wise and region wise. The most important thing
is the taste and quality. It varies according to the taste and income level of the people in that country.

CLIMATIC: In coke marketing, main idea is to serve it cold, so that they focus on hot areas of the world
i.e.: Middle East etc. and their sale increase in summer.

Coca Cola’s consumption in the summer is 60% than 40% in the winter; therefore, the company's sales
are higher in the summer. It also focuses in hot area in the world.

LOCALY: In Pakistan the coke segments more in urban and suburban areas as compare to rural areas.
2. PSYCHOGRAPHIC SEGMENTATION:-Psychographics variables the social class, lifestyle, occupation,
level of education and personality Coke segments everyone. But again it’s there packaging which is
different for different consumers. People who are brand conscious will not drink beverages of less
known brands.

3. OCCASSION:

Coca-Cola segments different occasions which are celebrated in the country.

4. DEMOGRAPHIC SEGMENTATION

Coca Cola products are purchased by different classes. Coke segments the small children introducing
tastes like vanilla, lime and cherry. Diet Coca Cola- targets adults that are between 30-50 years of age
and are health conscious but want the taste. Powerade- sport drink, targets athletes between 13-27
ages. Minute Maid- targets kids and adults from 1 year to 10 and 40 plus.

Income- segments different income level. For example: by packaging: for low level income the company
is selling returnable glass bottle and for high level income, the company is selling coke in tins.

The first servings of Coca Cola were sold for 5 cents per glass. During the first year, sales averaged a
modest nine servings per day in Atlanta. Today, daily servings of Coca-Cola beverages are estimated at
1.9 billion globally.