DIGITIAL ASSIGNMENT -4

SUBJECT CODE – BMT1007

SUBJECT NAME – MARKETING MANAGEMENT

TOPIC:

SEGMENTATION, TARGETING, AND POSITIONING

(STP)

SUBMITTED TO: SUBMITTED BY:

PROFESSOR: ASHOK.D NAME: SWETHA.S
DEPARTMENT OF VITBS. REG NO: 20BBA0037
SLOT: B1
SUBMISSION DATE: 11/12/2020
SEGMENTATION TARGET AND POSITIONING (STP) ANALYSIS:

STP model is very famous term in modern marketing, and STP stands for:

S- segmentation.
T- targeting.
P- positioning.
STP analysis is continuous process to well place the product in market. first step of STP is
segmentation, according to the Philip Kotler “segmentation means subdividing the marketing
into distinct and homogenous sub groups of consumers”.

SEGMENTATION:
Identifies and describes the market segments.
TARGETING:
It evaluates the segments and decide which to go after.
POSITIONING:
Designs a product or service to meet a segment needs and developing a marketing mix that
will create a competitive advantage in the minds of selected target market.

MARKET SEGMENTATION:
Dividing a market into smaller groups of buyers with distinct needs, characteristics or
behavior who might require a separate product and or marketing mixes.
So, if all consumer responds in same way, then there is no need to segment a market.
That is to divide the market on the basis of consumer’s characteristics. There are mainly 4
ways to divide the market.

Approaches for segmentation:

 Geographic approach.
 Demographic approach.
 Psychographic approach.
 Behavioral approach.

GEOGRAPHIC APPROACH:
It divides the consumer on the basis of location of the consumer.it may be a country wise
division, state-wise division or city wise division. Example: FMCG Company is Unilever,
Unilever has divided its market country-wise. For this need to see the country wise portfolio
of Unilever. Like they brand such as Nexxus, NEXZEMA, Ben & Jerry, CARESS in the
USA but these are not in India.
India have some different brands like LIFEBUOY, COMFORT, PEPSODENT and many
more so, the company adopted geographical segmentation.
Demographic approach:
In this, market will need to divided on the basis of age, gender, income, occupation or any
other demographic factors. Here, there some example of Colgate, Colgate has different
products for children that is Colgate kids for adults that they have regular Colgate, for
different income groups. So, the strategy of Unilever for low- income groups. The Unilever
has wheel detergent which is affordable to the lower-income group and they have surf excel
for high-income group.
Same ways for different genders fashion industries divide their product in a male fashion
brand and female brand.
EXAMPLE:
PSYCOGRAPHIC APPROACH:
In this, market will segment on the basis of personality, motive, trails. Here there are some
example of RIN.
So, RIN is targeting those people who are self-dependent and has a confident personality.

BEHAVIOURAL APPROACH:

In this segmentation, company

produce the products on the basis of
consumer behavior.so, this is very
important for websites, mobile
application or any online business.
Like Flipkart or any online
shopping app will segment its
market on the basis of behavior of
the consumer during festival
season.
So, these app give sale in festival time.

EXAMPLE:

CONCULSION:
Companies can segment their market on these 4 bases but it is not restricted. Company can
divide its market on any parameter is called segmentation.
TARGETING:

Targeting refers to determining which of the segments uncovered should be targeted and
made the focus of a comprehensive marketing program.
So, targeting is to select segment from the market. Generally, there are 3 targeting strategy.

 Undifferentiated strategy
 Single segment targeting
 Multisegmented targeting

Undifferentiated strategy:
In which the company selects whole market instead of selecting any one segment. Companies
like coco-cola have adopted this strategy. They have same product for whole market.

SINGLE SEGMENT TARGETING:

This is also called as concentrated targeting or niche targeting. Example: there is a company
named Wei chocolate, who has adopted this strategy.
Wei chocolate is making vegan dark chocolate.

MULTISEGEMENT TARGETING:
In this company will select multiple segments using different products. Majority of
companies are using this strategy to target maximum number of audiences. Example: P&G.
P&G has two washing powder brands.
 Tide
 Arial
Initially, tide powder was for hand washing of cloths and arial was for machine wash. So, by
this can target multiple segments.
ANOTHER EXAMPLE:
 AMAZON: Amazon always positions themselves with relation to consumer and
shopping experience.

THERE ARE FIVE PATTERNS OF TARGET MARKET SELECTION:

 SINGLE-SEGMENT CONCENTRATION
 SELECTIVE SPECIALIZATION
 PRODUCT SPECIALIZATION
 MARKET SPECIALIZATION
 FULL MARKET SPECIALIZATION

SINGLE-SEGMENT CONCENTRATION:
M1 M2 M3
P1

P2

P3

 So, the marketer decides to cater to a single segment only

 It is also referred to as concentrated marketing
 So, the marketer understands the needs and wants of the segment and focuses on one
segment only.
Example: Rolex Watcher.

SELECTIVE SPECIALIZATION:
M1 M2 M3
P1

P2

P3

 Here, the marketer caters to two or a few segments with different marketing mixes.
 It offers varied product and services offerings with distinct marketing mixes to the
various segments.
 Example: Maruti Suzuki cars, Soaps, Detergents from Procter and gamble.
 Chances of risk of falling totally are minimized as it diversifies coverage.
PRODUCT SPECIALIZIATION:
M1 M2 M3

P1

P2

P3

 so, the marketer deals with varying products in the same product line, and it adapts
the product to sell to several different market segments.
 Example: Gillette.
 The marketer caters to different segments, with a single product or varying forms of
the same product, so, they can develop the specialization and reputation in the product
line.

MARKET SPECIALIZIATION
M1 M2 M3

P1

P2

P3

 Here, the marketer deals with one specific market only, so it tries to meet many needs
of a particular customer group.
 Example; the various Ordinance Factories in India exist to cater to meet the various
needs of the defense forces only.
FULL MARKET COVERAGE:
M1 M2 M3

P1

P2

P3

 so, here the marketer caters to the entire market.

 A full market coverage could assume two forms, differentiation and undifferentiated.
 Example: IBM, HP for differentiation
 Example: Salt, Pepsi for undifferentiated.

POSITIONING:
 It used to ensure that a brand occupies the right spot of Target consumers. So,
positioning is the means by which goods and services can be differentiated from one
another and thereby give consumers a reason to buy.

 Example: Thumbs up.

 So, the Thumps up’s tagline is “taste the Thunder”.

 Thumbs up is the positioning themself as a drink for youngsters or who loves

adventure.

COCO-COLA COMPANY:
 The coco-cola company is the world largest beverage company.
 The company best known product coco-cola was invented by john smith Pemberton in
1886
 The coco-cola company headquarter is in Atlanta, Georgia.
 The current President and CEO is Mukhtar Kent.
 With the acquisition of major brands in India, it went on to be known as the
Hindustan Coco-cola beverages Pvt, Ltd.
 The coco-cola formula and brand bought in 1889 by ASA Candler who incorporated
the coco-cola in 1892.
INTRODUCTION:
Companies need people how to use data to understand their customers needs. Once they
understand the needs, they can provide the products customers want to buy.
Companies need people who have the skills to build the analytics capabilities that will
help them provide these innovation customer experiences.
So, it focusing on the customer part of customers analytics.
Here, a good understanding of customers is extremely important for running a successful
business. The “KYC” or “known your customer” is actually makes all the difference for
many companies.
So, the KYC helps to do their best in creating communicating, and delivering their
offering and by tailoring them to their customer’ needs and that makes customer analytics
the most important part of both marketing analytics and marketing function of a company
in general.
So, the customer analytics is very large area, it may include a wide range of
characteristics of customers and their behavior and numerous different outcomes and
performance indicates that the business might be interested.
 The fundamental marketing frameworks are:
 SEGMENTATION
 TARGETING
 POSITIONING
This is known as STP framework.
The STP framework is the most logical choice, as it applies to all areas of business and
marketing activities. So, that will work come from a b-2-C business model.

SEGMENTATION:

MARKET SEGMENTATION:
Coco-cola serves its products using mass market techniques which obviously falls
undifferentiated marketing. Undifferentiated marketing means no segmentation, but there are
minor factors on which that the coke segments its products and then targets the customers
somehow, these factors are as follows:

GEOGRAPHIC SEGMENTATION:
INTERNATIONAL:
 Coke segments its products country wise and region wise.
 The most important things, is the taste and quality.
 It varies according to the taste and income level of the people in the country, example:
third world countries are given low quality and taste.

CLIMATIC:
 In coke marketing, the main idea is to serve it cold, so that they focus on hot areas of
the world.

 Example: middle east and their sale increase in summer.

LOCALLY:
 In Pakistan the coke segments more in urban and suburban areas as compare to rural
areas.
 For the, small income people’s it has small returnable glass bottle.
 For the, middle class people’s it has small non-returnable bottle.
 For the, high class people’s it has Coke Tin.

DEMOGRAPHIC SEGMENTATION:
Age:
 So, here the Coke segments the small children introducing tastes like vanilla, lime,
and cheery.
 So, the coke segment focus children from 15-25 years old and 40+.
 Coke specifically target more young than older.
FAMILY TYPE:
 Coke introduces its economy pack and that’s how focus family and groups.
Gender:
 It targets both genders with wide variety drinks.
INCOME:
 It is affordable
 Coke segments-different income levels by packing.
 So, for the small income people it has small returnable glass bottle.
 And for middle people it has small non-returnable bottle.
 And at last, for the higher income people it has Coke Tin.

PSYCHOGRAPHIC:
 All psychographics variables the social class, lifestyle, occupation, level of education
and personality Coke segments everyone.

 But, it again there are some packaging which is different for different consumers.

 People are brand conscious

 They show their status by drinking coco-cola.

 The company can use advertisements to convey the company message.

  So, because coco-cola is a recognized world brand, people will drink it without
hesitation.

BEHAVIORAL:

OCCASION:
 Coco-cola segments different occasions which are celebrated in the country.
 Basant has become an international event identify of the culture of Pakistan.
 The credit for marketing celebrations available for almost everyone largely goes to
coco-cola company.
REQIREMENTS FOR EFFECTIVE SEGMENTATION:
MEASURABLE:
The Size and purchasing power can be measured. and characteristics of the segments can be
measured.

ACCESSIBLE:
The segments be effectively reached and served.
SUBSTANIAL:
The segments must be large or profitable enough to serve. A segment be the largest possible
homogeneous group worth going after with a tailored marketing program.

DIFFERENTIAL:
The segments are responds differently to different marketing mix elements and programs.
ACTIONABLE:
So, it able to attract and serve the segments.

MASS MARKETING:
In coco-cola company they are using a mass marketing so,
 Coco-cola company aims its products at young and old alike.
 Its goal has always been to be the market leader, and it still is today
 The ultimate goal of mass marketing is to achieve market domination.
 The ultimate prize of mass marketing is the creation of generic brands.
MARKET TARGETING:
 Coco-cola takes every customer at target and potential who is thirsty.

 All age groups are being targeted but the most potential is the age group from 18-25
that covers around 40% of the total age segment.

 There are many statistical techniques for developing market segments.

 So, once the firm has identified its market-segment opportunities it must decide how
many and which ones to target.

 Marketers are increasingly combining several variables in an effort to identify

smaller, better-defined target groups.

 It may determine the segment profitability.

 And it includes all marketing mix, product, price, place, promotion.

 For each promotion it creates value proposition and product-price positioning strategy
based on the segment’s unique customer needs and characteristics.
 It targets on micro- marketing or one-to-one
AGE:
 The target market for the coco-cola is based on age, the audience of coco-cola is
youngster or youth.

 It has wide range of targeting it ranges from the age of 15-25 and reaches to 40.

 Their targeting is not based on gender but the results said that both gender like this
product and use it.

GENDER:
 Coco-cola segments Pakistani market with a percentage ratio of 58% females and
42% males.

 Life style; busy life style (face shortage of time) and mobile generation.

 Family: It dependent on their family.

  Occupation: The students and family -oriented people.

 Nature: The fun loving and entertainment loving.

 Socio-economic status: The upper and lower class.

Coca Cola has surely targeted the customer’s media habits very effectively
for sure like:

 The youthful target gathering of people of the brand cherishes media

presentation;
 Mobile era and online networking are a piece of every -day life;
 Connected individuals; they like advancements, they like being shocked.

 Coco-cola company is performing full market coverage where they are serving, so, all
the segments with their products. The coco-cola has a product specialization target
market selection.

PRODUCT SPECIALIZATION

TEENAGERS YOUNGERS OLDER

P1 COCO-
COLA
P2 SPRITE

P3 FANTA

TARGETING MARKETING STRATEGIES:

Undifferentiated (mass marketing)
  It focuses on needs of the consumer rather than on what is different.

 Coco-cola company designs a product and a marketing program that will be appeal to
the largest numbers of buyers.

 So, coco-cola provides cost effectiveness because of its low products, inventory,
transportation, advertising, marketing, research costs.
So, here there are some difficulties:
 Coco-cola Develop a product or brand that satisfies all customers.

 And coco-cola keeping a strong place in the market and making profit, when the
several firms follow the strategies of heavy competition develops.

 Coco-cola company Satisfying the smaller segments.

 And also, coco-cola company offering differentiated products and services to market
sub segments by competitors.

 So, coco-cola company using the undifferentiated marketing (mass marketing), the
firm may decide the market segment differences and target the whole market with one
offer.

 Coco-cola company use intensely via TV and more so, it depicts the product utilizes
the mass marketing.

 Intense marketing activities of the company intends to capture almost all the
consumers in the world regardless of the income, lifestyle, profession, age, etc. of the
consumer.

MARKETING MIX OF TARGETING:

It is the leading product Coca Cola is one of the world’s most recognized and valuable
brands.

 Coca-Cola – the most popular and highest selling soft drink in history and also one of
the most recognizable brands in the world.

 Diet Coke: it is known as Coca Cola light in many markets. A sugar and calorie-free
soft drink. Introduced in 1982.

 Minute Maid: A juice brand acquired by Coca Cola in 1960.

  Powerade zero: Sports and fitness drink with electrolytes minus the calories.

 Fresca: Caffeine-free soft drink with a unique citrus taste.

 Del Valle: A premium line of juices and nectars sold mainly in Latin America and
Central America.

PLACE IN THE MARKETING MIX OF COCO-COLA:

Traditionally, the company has relied on its bottling partners for the packaging and
distribution of its products.

While many views of the Company as simply “Coco-Cola,” their system operates through
multiple local channels. So, coco-cola Company manufactures and sells concentrates,
beverage bases and syrups to bottling operations, owns the brands and is responsible for
consumer brand marketing initiatives.
Coco-cola bottling partners manufacture, package, merchandise and distribute the final
branded beverages to their customers and vending partners, who then sell their products to
consumers” 
Together they execute localized strategies of Coca Cola company. These customers sell coco-
cola products to the final customers.

PRICE IN THE MARKETING MIX OF COCO-COLA:

Both brands price their products competitively. Prices are not too high to go beyond the
average customers’ reach and nor too low to give an impression of low quality. 

Coca Cola’s pricing strategy is aimed at driving brand loyalty. 

due to the decreasing demand for soda products, price competition between Coca Cola and
Pepsi has gotten even intense.

PROMOTION IN THE MARKETING MIX OF COCO-COLA:

It utilizes both traditional and modern channels to promote its brand and products. Coca Cola
launched its Taste the Feeling campaign in 2016 which unites all of its brands. 

Apart from TV ads and outdoor ad campaigns, the company serves its ads across the internet
and on social media.

Coca Cola is also investing a lot in CSR and sustainability and developing a sustainable
supply chain and manufacturing network. Investing in socially beneficial projects has proved
beneficial for the company and has strengthened its image in the market.
There are more than 1,250 promotional videos of Coca Cola on its official YouTube channel.

POSITIONING:
 Identifies the customer’s needs and wants.
 Understanding of what the product does
 Customer benefits received from product
 Benefits provided by competitors
 And symbols.

STEPS:

DETERMINE THE CONSUMER PRECEPTIONS AND EVALUATIONS

OF THE PRODUCT OR SERVICES IN RELATION TO
COMPETITORS:

COCO-COLA LIFE:

 Customer perception:

 Energy, refreshment, joy, and positive living

 Green= natural.

 Identify the Market’s ideal points and size:

 It launched in Argentina and chile.

 Consists of young families.

 Coco-cola suggests that its “good for your life”

 Fresh market

 “better for u”

 Selection Position:

 The healthier option

 Monitoring the positioning strategy:

 The taste changes

 Years to perfect recipe

 Identifying competitor’s positions:

 Pepsi true
 Bitter after taste
 DR. Pepper Snapple group
 Experimenting with Stevia as well.
 Mountain Dew.
 PARLE ARGO.
CLASSIC COKE:

 Coke is a thirst-quenching refreshing, tangy, sweet, and fizzy soft drink.

 Coco-cola is the coco-cola company’s popular beverage.

 The soft drink originated in the contour shaped glass bottle, and now also is available
in cans and plastic bottle

DIFFERENCES TO PROMOTE:

IMPORTANT:

The difference delivers a highly valued benefit to target the buyers.

DISTINCTIVE:

The competitors do not offer the difference, or the company can offer it in a more distinctive
way.

SUPERIOR:

The difference is superior to other ways that customers might obtain the same benefit.

COMMUNICABLE:

The difference is communicable and visible to the buyers.

PREEMPTIVE:

The competitors cannot easily copy the differences.

AFFORTABLE:

The buyers can afford to pay for the differences.

PROFITABLE:
The coco-cola company can introduce the difference profitably.
DIFFERENCES:
The biggest difference between Coke and Pepsi are there is flavours.
COCO-COLA
 The coco-cola has more of a
vanilla-raisin flavour.
 Coke goes down smoother than
Pepsi.
The ingredients in a coke are as follows;
 Carbonated water
 High fructose corn syrup
 Caramel colour
 Natural flavours.
 So, coke has a little more sodium
than Pepsi, which makes the taste
a bit less sweet.
 Coco-cola is a new coke which
was renamed coke 2 like diet coke
it is also known as coco-cola light,
diet coke plus, coco-cola zero.
 Coke is often said to resemble
raisins with a hint of vanilla.
 Coke is defined as “smoother”
 Coke has a little less sugar, so it is
slightly less sweet
 Coke has more carbonation, so it
is slightly fizzer.
PEPSI
 Pepsi has more of a citrus flavour.
 So, Pepsi’s sales are higher than coke’s
that’s Pepsi as a company, which sells
other products as well.
The ingredients in a Pepsi are as follows;
 Carbonated water
 Caramel colour
 Sugar
 Phosphoric acid
 Citric acid
 Natural flavours
 Here, Pepsi has more calories, sugar,
and caffeine, so the taste is sweeter in
that aspect as well.
 Pepsi diet, Pepsi max, Pepsi one, Pepsi
throwback, and Pepsi lime.
 Pepsi is often said to resemble citrus
fruit.
 Pepsi is defined as “sharper”
 Pepsi has a little more sugar, so it is
slightly more -sweet.
 Pepsi has a less carbonation, so it is
slightly flatter
DIFFERENTIATION:
The steps a company takes to set their product or services apart from the competition, while
creating a greater value in the eye of the customers.

POSITIONING:

It setting up the products and services so, they inhabit a clear, recognizable, and desirable
spot compared to alternatives in the customer mind.

VALUE PROPOSITION:

 A brand value proposition is the full mix of benefits on which a brand is differentiated
and positioned.

 Coco-cola achieves value proposition by sticking to its roots of tradition.

VALUE PROPOSITION ACHIEVED:

 MORE FOR MORE:

The upscale products at a high price.

 MORE FOR THE SAME:

It attacks a competitor more for more positioning.

 THE SAME FOR LESS:

The offers many of the same brands at a deep discount.

 LESS FOR MUCH LESS:

The consumers setting for less for a much lower price.

 MORE FOR LESS:

So, the coco-cola company strives for but difficult to sustain because of cost and profits.
PRODUCT DIFFERENTIATION:

COCO-COLA PRODUCT:

Coke represents the happiness and moments of joy, while it protects culture and maintains the
status quo.

Product features:

 The product features like different bottles, cans, cups etc.

 It recognized the brand name symbol, logo, and colour.

Product pricing:

 It reduces the product for specific promotional activities and supermarket sales.

Product enhancement:

 So, the different coke products targeted at specific market.

Example: classic coke VS caffeine free coke.
  Coke differentiation strategy is for development of product (soft drinks) and
services (delivery) to offers unique feature & attributes.

 Coca Cola maintains their differentiation from other soft drinks by spending more
than 20% of their advertisement budget to only differentiate their product. 

 When customers find any product, they will first notice the different packaging
used for its different brands.

 Coca-Cola isolate their competition away from the market by creating a strong,
brand loyal customer base.

 Coca-Cola’s adverts, the company is keen on emphasizing on family, friendship,

adorable bears, and other happy relationships. The current slogan of Coca-Cola is
“BETTER WITH COKE, OPEN WITH HAPPINESS”.

 Coca-Cola ensures that consumers can get these different brands in different
quantities. 

 So, coco-cola has successfully positioned itself on the following:

The successful communication of prescribed strength of the product: integrated -marketing
strategies.

 Symbol of joy and fun are coco-cola of successful marketing strategies.

PEPSI PRODUCT:

Pepsi has target’s a young audience with most of its advertisements addressing teens who
have a keen interest in sports, fun, and music.

Pepsi creates the culture and embraces the individuality. So, for Pepsi loyalists an existing
life is much more important than leading a happy one.

With these eye-catching and interesting adverts, the customer would like to give Pepsi a taste
just to experience the value the drink offers.

The advertising slogan of Pepsi in India is “THAT’S WHAT I LIKE”

The Pepsi drinks are available in different varieties

 Mountain Dew
 Aquafina
 Frito Lay
 AMP energy drinks
 Diet Pepsi
The Pepsi brand positioning has finally always as a refreshing cola drink for the youth, and
just about every social occasion.

Coca-Cola has differentiated its drinks from that of Pepsi to ensure it serves the needs of its
consumers.

Pepsi also considers themselves the bold, refreshing, robust cola which coke and other colas
could also claim, some of this parity are a product differentiation.

BRAND PORTFOLIO ELEMENTS:

COCO-COLA’S STRATEGY:

the competitive strategy that coco-cola follows in their main business is the broad
differentiation strategy.

The main lever of this strategy- coco-cola’s ability to identify diverse customers tastes and
create products for their satisfaction.

The implications of coco-cola strategy:

Coco-cola products will be present in every country in the world and serve so many different
tastes that every single person can find at least one product that one likes in coco-cola’s
product range.

 Its flagship brand coco-cola can experience negative due to its saturation on the
market.

COMPETITORS:

Coke’s major competitor is “Pepsi” and there is no hesitation to say these because everyone
known that all the other cold drinks, coffee, tea are the competitors. Whereas according to
coke their direct competitors is “tap water”.

The direct competitor of coco-cola is Pepsi there is always ongoing tough competition
between these two rivals with Pepsi leading with 54% market share and coke gradually
growing and catching up 36% market share in Pakistan. So, the level of the situation its
reverse.

NESTLE and SHEZAN juices that don’t to pose a threat to coke as yet but has the potential
to do so as it is exploiting the nature aspect and more make people conscious about physical
fitness coke has launched, “Diet Coke” as physical fitness demands.

PRICING:

The price of coco-cola, despite being market leader is the same as that of its competitor Pepsi
cola, sometimes, Pepsi places its customers into some psychological pricing strategies by
reducing a high period bottle and consumers think that they save a lot of money from this.

MARKETING COMMUNICATION:

Coco-cola company advertises its products mainly coke through electronic media that
includes television, radio and internet as well, so the leading newspaper Pakistan are also the
targeted by coke for advertising.

DISTRIBUTION CHANNELS:

so, coco-cola company makes two types of selling:

direct selling
indirect selling

DIRECT SELLING:
They supply their product in shops by using their own transport. So, in this selling company
have more profit margin.

INDIRECT SELLING:
So, coco-cola have their whole-seller and agencies to cover all area. So, they have so many
whole-sellers and agencies to assure their customers availability of coco-cola products.

REFERENCES:

https://www.slideshare.net/LThy19/coke-brand-positioning-statement
https://www.slideshare.net/HibaNasir5/coca-cola-brand-positioning
http://www.coca-colacompany.com/our-company/the-coca-cola-system
http://www.coca-colacompany.com/our-company/the-coca-cola-system
 http://www.coca-colacompany.com/careers/who-we-are-infographic
http://www.coca-colacompany.com/stories/taste-the-feeling-launch
https://www.yieldify.com/blog/demographic-segmentation-ecommerce-marketing/
https://www.slideshare.net/alichoudharyaries/pepsi-presentation-45317799