Coca Colas STP Analysis(huao)



Coca-Cola is one of the biggest soft drink companies in the world, with a comprehensive portfolio of products including various types of non-alcoholic beverages. Coca-Cola’s products are sold under four categories: Lifestyle & Fun, Verve, Sweetened Beverages and Juice.

The company has significant market share in virtually all countries where it sells products. It has managed to maintain strong brand image and loyal customer base over time. It enjoys a competitive advantage due to its exclusive distribution agreement with PepsiCo and other beverage brands affiliated with The Coca-Cola Company.

Coca Cola’s STP (segmentation, targeting and positioning) analysis can be used to identify the company’s segmentation strategy in order to maximize the customer reach. Segmentation is the process by which a market is divided according to its customer demographics, behaviors and needs which allows marketers to make better decisions on how they should target their product offerings most effectively.

By analyzing different customer segments that are present within its target market, Coca Cola can decide what markets it should focus on as well as how it should tailor its promotional campaigns towards those specific audience targets. After identifying its target segment(s) and product offers tailored towards them, the advertising strategies adopted by Coca Cola will help it further differentiate itself from other competitors by creating an identity that reflects both customer wants and needs as well as the product attributes that make this brand unique from other beverage corporations.


Segmentation is an important tool in marketing and Coca Cola is one of the companies that has successfully used it. In essence, segmentation involves dividing a marketing campaign into parts or segments so that the target audience can be divided into smaller groups and targeted more effectively. Coca Cola has employed segmentation in order to understand their target market better and to create effective marketing campaigns.

Let’s look at how Coca Cola has used segmentation in its SHP analysis:

Demographic segmentation

Demographic segmentation is a process by which companies divide their markets into segments, or small groups, based on characteristics such as age, gender, marital status and household income. This segmentation enables companies to better customize their products and services to match customer preferences and demands.

Coca-Cola is a prime example of how demographic segmentation can be used in the real world. By researching its customer base, Coca-Cola has been able to identify key demographic segments that can be effectively targeted with their campaigns. Examples of these customer segments include young urban professionals, affluent middle-aged couples and families with young children.

For each of these customer segments, Coca-Cola crafts tailored advertising messages that appeal to them specifically. For example, campaigns targeting younger urban professionals might focus on quick access and convenience while those targeting affluent middle-aged couples often showcase its ability to bring families together over a shared moment of joy. This type of demographic segmentation enables Coca-Cola to be more effective in connecting with its customers at an emotional level and accurately portray the type of lifestyle associated with drinking its product.

Psychographic segmentation

Psychographic segmentation involves dividing the market based on personal values, lifestyle and social class. Psychographic segmentation is more frequently used to target markets than demographic segmentation.

Coca-Cola uses psychographic subcultures to target specific age groups. For example, teenagers may prefer sweeter Coca-Cola drinks or packaged products that contain less sugar compared to people aged 35 or over. They also try to appeal to young people by introducing new flavors and fashions as well as sponsoring music festivals, movie awards shows and other cultural events.

Coca-Cola also markets its product through lifestyle segmentation which divides consumers into various segments depending on their lifestyle needs and values. For instance, there is a health conscious market that seeks diet varieties of its products due to health concerns associated with high sugar consumption; a convenience market that prefers products with accessible packaging; a glamor market that seeks attractive packaging styles; and an ethical market where the consumer is influenced by Fairtrade and ethical production values set by Coca-Cola itself. All these subcultures have their own motivations for consuming Coca-Cola’s products thus allowing the company to reach out selectively according to individual preferences related to consumption and lifestyle choices.

Geographic segmentation

Geographic segmentation is the practice dividing a market into different geographical units based on factors such as countries, states, nations, regions and cities. Businesses often use geographic segmentation to effectively allocate their marketing resources among targeted locations and measure the performance of marketing campaigns in various areas.

Coca-Cola, for example, may segment its markets based on countries. In the United States alone, it may choose to target college students in urban locations and health-conscious people in more suburban settings. Because each geographical unit has distinct characteristics, a tailored approach can help Coca Cola create appropriate content for each area’s customers and ensure maximum returns for its investments.

Geographic segmentation is often used together with demographic segmentation – depending on a company’s objectives. For instance, Coca Cola could target customers living in specific cities within certain age brackets or income levels that should be more receptive to its messaging. Additionally, psychographic or behavioral criteria can be used to further refine demographic segmentation and enhance campaign performance.

Behavioral segmentation

Behavioral segmentation is a type of market segmentation that focuses on how customers act when they buy or use a product or service. This segmentation approach aim to understand what drives customer behavior and how specific factors such as usage rate, loyalty, benefits sought, or occasion can be used to determine grouping of similar buyers.

Behavioral Segmentation has been the primary process used by Coca Cola for their STP marketing strategy purposes. This segment has been identified based on factors such as:

  • Usage Rate: Customers who have regular consumption need vs. occasional consumption needs.
  • Benefits Sought: Customers looking for health benefits vs. customers focused only on taste and special promotions
  • Occasions: Customers responding to different types of distribution channels such as different seasons, events, festivals, etc
  • Loyalty Status: first time buyers vs repeat customers or loyal customers
  • Attitude towards product/brand: positive attitude towards the brand/product and its ingredients vs those with negative attitude

By understanding each of these factors individually and collectively, Coca Cola can design campaigns tailored to specific segments rather than reaching out to everyone with the same message which increases their effectiveness in driving sales revenue compared to focusing all efforts on a single segment.


Proper targeting is essential to ensure that customers are able to find and purchase the product. Coca Cola’s STP analysis helps us to identify their target market and understand the different strategies they employ to reach them. Through the STP analysis, we can identify the different segments, their needs and preferences, and the type of promotional activities used to reach them.

Let’s take a closer look at Coca Cola’s targeting strategies:

Evaluating target segments

The next step in the process is to evaluate potential target segments, also referred to as market segmentation. This involves breaking down the total market into different segmented blocks, based on factors such as demographic, psychographic, and geographic information.

Demographic factors include age, gender, income level, occupation and education level. Psychographic factors refer to the lifestyle attributes taken on by individuals or groups. Some examples of these are risk-taking behaviour, activities and interests. Geographic includes different regions or countries which a product can be sold in.

Once these segments have been identified and evaluated against Coca Cola’s criteria – such as its marketing strategy, product type and what it hopes to achieve – then a final list of target customers can be generated. These customers should have enough common characteristics that a tailored communications program can be designed for them to ensure the highest return on potential sales for Coca Cola’s products.

The communications strategies of both traditional media channels – such as TV commercials – as well as modern digital channels classed under digital marketing efforts should be considered for each potential target audience in order to maximize reach and engagement with its customers within this segment.

Choosing target segments

When it comes to selecting target segments, it’s imperative to conduct market segmentation analysis to ensure you focus your efforts on the right consumer demographics and psychographics. For Coca-Cola, this involves researching the language, interests, values and lifestyle of potential customers. It also requires an understanding of factors such as age, gender and socio-economic status in order to establish an effective marketing mix that maximizes the company’s return on investment.

Coca-Cola has been successful in reaching a large age group including millennials and baby boomers. Globally, the company advertises its products for people aged between 6 – 60 years old. Furthermore, according to their 2020 Q1 results report, as of 2020, 50% of Coca-Cola’s total volume was consumed by under 35s while they have also had success in targeting women who constitute over 50% of their consumers worldwide.

In terms of geographic user segmentation; Coca-Cola is primarily focused on global markets such as America Asia Pacific and Europe due to their high levels of disposable income which allows them to purchase soft drinks more frequently than those living in other parts of the world who may not have access or afford this luxury product. Additionally, they are targeting emerging markets with comparatively less disposable income due to a greater value placed on taste experiences over pricing which leads users towards premium products like Coca Cola with an iconic brand reputation rather than store brand cola’s with no preconceived knowledge about the product’s quality.


Positioning is an essential part of any successful STP (Segmentation, Targeting, and Positioning) strategy, and Coca-Cola is no exception. It is essential to understand the target market and determine how to best position the company’s product or services in a way that resonates with consumers. In this article, we will take a closer look at how Coca-Cola is positioning itself in the market in order to attract more customers.

Developing positioning statements

One of the most important elements of an effective STP strategy is developing positioning statements! Positioning statements help marketers understand how their product or brand will fit in its desired market, by specifying how they want their target consumers to perceive the product or brand. This influence can be made via advertising, appearance, price and a variety of other factors.

Building a good positioning statement requires identifying who your target consumer is and how you want them to think about your product or brand. Establishing a company’s identity within its market can help create brand loyalty and serve as a springboard for more successful campaigns. It’s worth the effort to develop effective positioning that accurately reflects your target audience’s perspective on your product or brand.

The three elements that are found in strong positioning statements include:

  1. Unique selling proposition (USP): What makes your product stand out from its competitors?
  2. Target consumer: Who are you trying to reach?
  3. Key benefit: How does your product benefit the consumer?

With these three essential components, you can create a succinct yet powerful position statement about what makes your company unique and why it’s the best option for specific customers. To develop an effective positioning statement for Coca Cola, we first need to understand who their target audience is – youth enthusiasts who enjoy participating in activities with friends! From this understanding it might be possible to craft this basic position statement: “Coca-Cola offers an upbeat beverage choice designed specifically for young people looking to stay energized while socializing with friends”

Implementing positioning strategies

A key part of successful positioning is the implementation of strategies to achieve it. Coca-Cola have a wide range of product offerings in the market which require both internal and external strategies to ensure ultimate success.

Internally, an organization’s strategies must reflect its positioning goals. This is done by shaping organizational policies and decisions according to their desired product and brand goals, making sure that all employees are on board with the overall vision for their products and the values associated with them.

External strategies focus on how organizations interact with consumers in order to promote their product or service. PepsiCo has long been known for its television ads featuring celebrities using their products, such as “The Pepsi Challenge” campaign featuring Britney Spears and Cindy Crawford (1998). They often rely heavily on marketing campaigns and promotions aimed at specific consumer segments. Additionally, distribution is an important part of external strategy when competing in global markets where geographical limitation can play a key role in success or failure.

Overall, implementing positioning strategies is best achieved when building upon existing strengths as well as identifying weaknesses within the products or services – this will help ensure that a company can remain competitive. It may also involve acquiring new resources, partnering up with other companies or affiliations, investing in marketing materials, shifting pricing structures or providing added-value to customers through promotional deals – this will all serve to further reinforce positive brand recognition of a company’s services/products by consumers.


To conclude, the STP (segmentation, targeting and positioning) analysis highlights how Coca-Cola has successfully established itself as a global brand by focusing on a segmentation strategy fit for the needs of a diverse range of consumers. By leveraging the insights gained from this technique, Coca-Cola was able to create and define unique target markets with positioning that capitalized on and strengthened its brand identity. This case study serves as an example of just how powerful marketing segmentation can be in constructing effective strategies tailored to customer needs.