Coca Colas STP Analysis



Segmentation is the process of dividing a market into distinct groups of consumers who have similar needs or characteristics. Coca Cola has implemented a segmentation strategy to identify and target different market segments. This section will provide an overview of Coca Cola’s segmentation strategy, including their target markets and the strategies they use to reach them.

Identify the target market

When looking at segmentation, the first step should be to identify the target market for the product or service. The target market is a group of consumers who share similar characteristics and have an identified need for your product or service. As an example, when Coca-Cola was formulated in 1885, the makers assumed their target audience was adult consumers. By understanding who needs your product and why it is needed, you can begin creating a profile for each segment within that target market.

Once you are aware of your broad target audience, develop a strategy to create segments within that audience by evaluating marketplace demographic data such as age, gender, household income level and geographic location. Additionally, psychographic information such as lifestyle choices – health conscious versus indulgent – media consumption habits and brand loyalty can be used to fine-tune the segments even further.

In order to maximize Coca Cola’s profits and efficiency; they could then look at subdividing this further into even smaller groups based on additional criteria such as:

  • Types of customers (e.g., college students vs retirees)
  • How they consume their products (e.g., vending machine sales vs retail outlets)

By better understanding these customer traits they can increase their effectiveness in reaching those customers with specific messages tailored to them and better position themselves in relation to their competition .

Analyze customer demographics

To conduct a successful STP analysis, businesses should start by taking a deep dive into customer demographics. This will involve looking into the age, gender, buying habits, location, and income of the people who purchase their products or services. It’s important to look beyond simply buying behavior of existing customers and consider potential untapped segments as well.

Businesses need to get inside the heads of potential customers—what drives their decision making? To help segment customers better they should consider external factors such as competition as well as internal forces like pricing strategy. By understanding the needs and wants of their target audiences they can better position their product or service in order to drive meaningful results.

The more in-depth businesses can go when analyzing customer demographics allows them to create segmented categories that they can then tailor product offerings and recruitment strategies to that demographic. This enables them to more effectively connect with target audiences on an individual level rather than en masse which helps foster stronger brand loyalty, increase market share and maximize ROI.

Analyze customer psychographics

Customer psychographics are a helpful tool in segmenting a market into smaller customer groups, who then become the target market of products and services. By understanding customer psychographics, companies such as Coca-Cola can better understand the customers’ motivations, beliefs and attitudes so that they can improve the levels of customer satisfaction.

Psychographics can be divided into four main categories: beliefs, aspirations, lifestyle and opinion. Analyzing how customer belief systems are structured enables companies to determine their marketing strategies for certain products and services. Beliefs reflect how a consumer’s decision-making process is affected by his/her values and attitudes towards certain concepts such as quality over quantity or being environmentally conscious.

Aspirations provide valuable insight into what drives someone’s decisions. It allows businesses to tailor their marketing messages addressing those wants and needs.

In addition to beliefs and aspirations, lifestyle comes in next when it comes to analyzing consumer consumption habits. Lifestyle represents group behavior patterns consisting of fixed practices that impact an individual’s consumption choices such as fashion trends or food preferences among other things. Studying lifestyles helps in understanding the underlying needs behind everyone’s actions within those lifestyles helping identify specific target markets within that segment while clarifying on which segments to focus on more closely.

Opinion is another critical area when it comes to understanding customer psychographic segments as it reflects customers’ views toward topics like political issues or social gatherings which influences their buying choices significantly indirectly or directly influencing their decisions regarding brands along with other elements like environmental concerns etc., Opinion research is essential for businesses such as Coca-Cola because it provides detailed insight about consumers through surveys for more in depth analysis into customers’ point of view enabling them to create better alignment with brands by effectively targeting identified segments with appropriate marketing messages.


Targeting is an important part of Coca Cola’s STP Analysis. The company needs to ensure that their ads and product placement reach the correct target audience in order to be successful. Coca Cola needs to determine who their target demographic is, what kind of messaging resonates with them, and how to reach them.

This section will explore the different targeting strategies Coca Cola could use:

Evaluate target market segments

Segmentation, targeting and positioning (STP) is an important concept in marketing management. It is fundamental not just to Coca-Cola but for other major and well-known brands too. STP allows a company to identify which type of customers are most likely interested in the goods or services it provides, as well as how and where it should invest its resources most effectively.

Evaluating target market segments involves taking a close look at each segment and assessing their related suitability criteria. Such criteria include the size and growth of the segment, homogeneity/heterogeneity of buyers in terms of attitudes, behaviour, geographic locations or outlooks on life; the demand-supply dynamics; brand loyalty; competitive strength; product/service fit (if any); competitive costs to access the market/segments; potential sources of differentiation as against competitors’ offerings; potential for product value improvement through creative solutions, amongst others.

By doing this evaluation, Coca-Cola can determine which target segment offers an attractive return on investment for its marketing activities. Further analysis can be done through segmentation variables such as age group, region or ethnicity – allowing Coca-Cola to create separate messaging and ad campaigns tailored to fit specific segments. Additionally Cocoa Cola needs to identify consumer needs more precisely so that its communication message is more effective towards its target market segment leading to greater success with higher conversion rates over time.

Assess the attractiveness of each segment

A successful segmentation strategy is an important part of any marketing plan. To ensure that your efforts will be effective, you must first assess the attractiveness of each segment. When it comes to targeting, Coca-Cola uses a combination of demographic, psychographic, and targeted marketing to identify their target segments.

  • Demographics are the primary factors used to determine key elements such as age, gender, education level, income level, and geographical area.
  • Psychographics include lifestyle characteristics and consumption habits such as interests or hobbies and leisure activities.
  • Targeted marketing involves identifying potential customers with special needs or aspirations for a particular product based on their cultural background or certain life events. Cocoa Cola also engages in geodemographic segmentation which involves combining demographic data with geographic data to reach more precise target segments.

In order to assess the attractiveness of each Coca-Cola target segment, internal factors such as sales goals and resources must be considered in combination with external factors such as industry trends or competitor activity. A thorough analysis can help identify segments that are most likely to respond positively to promotional campaigns and ensure that resources are allocated adequately across all targets for maximum xpotential benefit.

Choose target segments

The market segmentation process consists of three main steps: identify customer segments, select target segments and develop appropriate marketing strategies to reach these customer segments.

The first step in the process of marketing segmentation is to identify customer segments. This process involves classifying the potential customers into distinct groups based on certain characteristics like age, gender, geography, lifestyle, etc.

After identifying the customer segments that best represent your product or service, you need to select which target audience or segment you will focus on. During this stage it is important to consider factors such as size of markets available for each segment, demographic profile of each group and the buying power of each group in order to determine which customer groups you should focus your corporate efforts on.

Once target segments are identified and have been found attractive enough for targeting a particular product or service then it is time to plan out a strategy for reaching these particular segments. Some key considerations include:

  • How you will position your company’s products/services in relation to competitive offerings in the same section;
  • How do price points relate within competitive parameters;
  • What type of promotions would be most effective;
  • What communication channels would be used as part of an overall marketing plan?

By setting specific objectives that are measurable and attainable along with careful planning and implementation a well-crafted marketing strategy can lead to effective segment targeting desired goals.


Positioning is an important part of Coca Cola’s STP Analysis. It is the process of creating a unique image for the product in the mind of the consumer. Through positioning, the product can communicate its value proposition to the target audience. It is also important for developing a competitive advantage in the market and staying ahead of the competition.

In this section we will take a look at how Coca Cola has positioned itself in the market.

Develop a positioning statement

A positioning statement is an important tool used by companies to identify the best way to stand out among competitors. It’s a way to create an intentional and effective message to express your company’s unique value proposition that resonates with your target market.

When developing a positioning statement for your company, it is helpful to consider the following questions:

  • What makes my product or service different from the competition?
  • What do my customers need that other companies may not offer?
  • How does my product or service fit into the market?

Once you have answered these questions, you should be able to develop a clear and concise statement that captures what your company stands for. An example of a positioning statement might be: “Coca Cola is the trusted beverage brand of choice for consumers who value quality and variety at competitive prices.” This statement integrates Coca Cola’s strengths (quality and variety) with customer needs (competitive prices).

Your positioning statement will give direction and purpose in all of your future business decisions – from hiring new staff, creating marketing campaigns, or pricing products – so it’s important to be sure you are framing your message in the most accurate way possible.

Determine the most effective communication channels

When it comes to communicating the message of your product or brand, selecting the right communication channels is essential. Factors such as budget, the target audience, and objectives should all be taken into account when selecting your communication channels. By choosing a combination of online and offline channels you can ensure that your message reaches a wider range of potential customers.

Offline communication channels include traditional media such as television, radio and print. These offline channels provide mass market appeal and allow for more creative storytelling to help engage an audience.

Online communication channels offer more targeted reach with digital ads served through search engines, websites and social media platforms. This enables you to track the level of engagement from users who interact with the ads which provides important data that informs future ad campaigns.

Finding the balance between these two approaches gives Coca Cola an opportunity for greater flexibility in their communications strategy allowing them to tailor their messages to their specific target markets while still generating a high volume of leads. This makes it essential that they determine which online and offline channels are most effective in generating leads to ensure maximum efficiency in their communications strategy.

Create unique selling points

In order for Coca-Cola to make the most of their STP Strategy, they must create unique selling points that appeal to their target market. This should go beyond just emphasizing taste and product attributes. It is important to build an emotional connection with consumers, as well as create a sense of loyalty and trust in the brand.

Building on existing positioning strategies, Coca-Cola should seek to focus on creating messages that communicate the values of the company, such as innovation and sustainability. Additionally, unique selling points can range from packaging design and convenience to extended product offerings or health/wellness benefits. By concentrating efforts on creating a brand with unique selling points that stand out in a competitive market, Coca-Cola is better placed to reinforce its position among consumers over time.

Implementation and Evaluation

Coca Cola have used their STP analysis to carefully segment their target market, devise a marketing strategy and make plans to implement their strategy. The next step is to evaluate their strategies and analyse the results to see if they have been successful in achieving their objectives. This section will focus on the implementation and evaluation of Coca Cola’s STP analysis.

Develop a marketing mix

The reasons for conducting a marketing mix analysis are to ensure that the objectives of Coca Cola are met. This includes channelling its processes and products in a manner that resonates with its target customers, as well as facilitating strategic decision making. A successful STP analysis requires delving into the marketing mix, which is essential for implementing new strategies and structures within an organization.

The four main elements of the Marketing Mix are product, price, place and promotion (the 4Ps). For Coca Cola to effectively create strategies around these four aspects of their business, they must first assess their existing customer base and understand who they are targeting when implementing the 4Ps of their marketing mix.

When developing a product, Coca Cola needs to ensure it responds to customers’ wants and not just what it believes they need. It must also examine current trends in consumer tastes and preferences set by competitors to stay ahead in crowded markets. It is important for Coke to maintain control over pricing by creating brand image through premium pricing or leveraging generics available at low cost from competitors.

Coca-Cola also needs to consider how their products reach the market – take some time to consider channels such as direct sales, Over-the-Counter / Retail sales, Online distribution or a hybrid approach across geographic regions or socio-economic scale – these will depend on their customer base’s availability/ preferences.

Finally, promotion encompasses advertising & promotion through television channels, Outdoor media such as hoardings, Radio / Podcasts, Social Media, Organic campaigns etc; alongside tactical engagements with retailers & influencers, Advisory boards, Co-Marketing activities etc; all aimed at driving incremental purchase behaviour among targets while defending existing market share with robustness & consistency towards objectifying KPIs & ROI intensity.

Monitor and adjust the marketing mix

Monitoring and adjusting the marketing mix is an important step in implementing and evaluating the STP analysis for Coca-Cola. Through monitoring, the company can get a better understanding of how customers are responding to their marketing initiatives, while adjusting allows them to make changes if needed.

When monitoring the effects of their STP analysis, Coca-Cola needs to consider factors such as customer feedback, market trends and competitor actions. This type of information will give them a clear understanding of how their efforts are impacting sales or profits. Additionally, data on pricing, promotions and distribution channels should be gathered in order to assess how well these aspects are resonating with consumers.

Once better insight is gained from monitoring, any necessary adjustments can be made accordingly. For example, if promotional efforts are not as effective as expected or brand awareness is lacking amongst certain target audiences, then changes can be implemented in order to improve results. Adjustments may also be needed when pricing strategies don’t seem to be generating the desired levels of revenue. Tracking each element of the STP analysis will help ensure that all components are working together harmoniously so that maximum value can be achieved within the marketplace.

Evaluate the success of the STP strategy

When evaluating the success of Coca Cola’s STP strategy, it is important to look at both qualitative and quantitative metrics. Qualitatively, factors such as customer responses, competitive positioning, and brand perception should be considered. Quantitatively, metrics like sales volumes, market share and return on investment should be analyzed.

Analyzing qualitative data can help inform decisions and assess how well the strategy is performing in terms of actual customer reactions and shifts in competitive positioning. For example, what are customers saying about the new product or campaign? Are they engaging with it? Are people talking about it on social media? Is there an increase in sales volume due to this strategy?

Quantitative data can help measure success in a concrete way. Evaluating metrics like market share or transaction value per customer can show if a product launch has been effective. Additionally tracking return on investment (ROI) will tell you if a particular marketing campaign was worth the money spent. Finally tracking sales volume over time will give you clues as to whether your STP strategy is resonating with customers or not.

Overall, evaluating the success of your STP strategy requires looking at both qualitative and quantitative metrics to get an accurate picture of performance. By analyzing customer feedback, brand perceptions and ROI alongside sales volumes and market share you can get an idea of whether your STP strategy is working for or against Coca Cola’s objectives.