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MODULE NAME: Marketing Management

MODULE CODE: MN7404
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Contents
Introduction................................................................................................................................2
Coca-Cola STP analysis.............................................................................................................2
Segmentation strategy............................................................................................................2
Target market strategy of Coca-Cola.....................................................................................3
Positioning strategy of Coca-Cola.........................................................................................4
Discussion and recommendations..........................................................................................4
Conclusion:................................................................................................................................6
Reference:..................................................................................................................................8
Introduction
Marketing strategy relies heavily on market segmentation (Hunt 2000). It is an understanding
that in a dynamic economy, offering one product to all users is rarely practicable. Consumers
with comparable wants must put together, according to the core premise of market
segmentation (Wind, 2000). The procedure is commonly described as having three stages:
segmenting the initial stage, consumers are divided into segments based on a single or
multiple factors. Each segment's description is created, and each section is confirmed. The
second stage is targeting, this is where the company determines which targeting approach to
use and which segments to focus its resources on. Positioning the last stage, this
entails decision making about how to best service these segments with the marketing
campaigns. To provide it, the company needs to have a good understanding of consumer
views and purchasing propensity in order to make a compelling offer to the segment. STP
(segmentation, targeting and positioning) refers to the combination of these three stages. As
suggested by Wind, (2000), it's vital to understand the distinction between STP's rhetoric and
reality; while most companies want to implement STP, the ability to deliver on its promise is
constrained due to technological, data, procedural, and infrastructural constrain.
Nike is a global firm founded in 1964, based in the United States that designs, develops,
manufactures, and markets footwear, garments, accessories, and provide services globally.
Nike is the globe's leading seller of athletic footwear and garments, as well as a significant
sports accessories producer. The rationale of this study is to offer information on the
company's marketing strategy, to know how it became so successful. The study covers the
many marketing difficulties and possibilities that Nike Company is facing, as well as the
features of its existing and future clients. The research also confers the numerous
segmentation possibilities accessible to Nike Company before recommending the most
appropriate marketing segmentation which the company should think so that it can
accomplish sustainable sales development.

Nike STP analysis

Segmentation strategy
Despite the fact that Nike has a broad target area of "all athletes," it clearly distinguishes
numerous market categories. Geographic, demographic, psychographic, and behavioural
segmentation are the most important segmentation characteristics:
Segmentation by locations
Geographic is a uncomplicated yet efficacious segmentation criterion. Nike divides the
market into numerous divisions depending on global and country, city, and popularity
density. Nike, precisely, pushes distinct campaigns across the world as sports varies by
location, even by city.
Segmentation by demographics
Since the traits are simple to recognise and quantify, are obtainable through several sites, like
the official population figures, and are connected with sport mindsets like visiting a game or
monitoring sports, demographic segmentation is Nike's most often utilised strategy. Nike
segments people depending on their gender, age, and life cycle stage, as determined by
demographic segmentation. The most vital thing to know is that Nike caters to clients aged
11 to 45, with a focus on teenagers, in order to develop long-term devoted customers. For a
case, prior to the 2014 World Cup, Nike introduced a publicity strategy that featured
renowned football professionals playing the sport with youngsters, urging them to emulate
their heroes. Nike also utilizes gender as a crucial facet in attracting their target audience.
Regardless of the fact that its male customer base is larger, Nike has recently made a
significant investment in females. Nike, in particular, has established a deliberate strategy to
attracting women by introducing a number of female sports lines, which are likely to see
substantial growth of revenue in the upcoming years. It is important to note that Nike did not
divide the market into segments depending on ethnicity, comprising nationality, race, and
religion, in order to categorise customers. In order to split the market, did not take into
consideration the life cycle. 
Figure 1: Segmentation with respect to Age and Gender

Psychographic segmentation
Nike targets consumers focused on their living preferences, attitude, and activities, via
psychographic segmentation. Nike precisely focusses on people who relish sports, go to the
gym on a daily basis, are sportsmen, and are devoted towards sports, which are a vital aspect
of life. Persons' lifestyles are associated with their hobbies, preferences, and behaviour,
resulting in a unique "feeling," and as a response, they purchase identical things. Nike uses a
sporting events strategy to motivate, inspire, and psychologically relate all athletes to its
products. Nike's mission statement, to offer creativity and innovation to each and every
sportsperson in the globe," as well as "Run with me," inspires all types of sportspersons to
stick to the company with an impression of belonging. Nike targets a fashion-conscious
audience in addition to sports admirers. There are those who are enthusiastic about companies
and purchase the firm's materials solely to keep up with the trends of fashion. These people
believe that Nike's products are more than just athletic shoes; they are a way of life.
Segmentation of a person's behaviour
On the other hand, Nike is anxious about how its products make people feel. The company
firmly states that if a person has a body, he is an athlete and if a person is an athlete, Nike's
products will give a sporty feel. Nike, increases consumer engagement by offering them with
high-quality, diverse, and innovative items from which to choose, allowing them to acquire
the company's products more often. Moreover, Nike allows its patrons to discuss their
emotions with their pals and family, especially product appraisals on the web, which
disseminate to social media and have a significant impression on customer purchase
behaviour. In the United States, for example, all advertisements revolve over baseball and
football, whereas in Europe, commercials revolve upon soccer.
Segmentation on socioeconomic basis
In general, income, education, and profession are associated in view of the fact that those
with a better educational degree have a better income and a better social rank. Consequently,
Nike separates the market into three segments: lower, upper middle, and upper class, with the
latter class getting limited-edition sports accessories obtainable only to those with a high
income.
Table 1: The following table shows Nike’s segmentation:
Type of segmentation Coca-Cola target customer
segment
Geographic 200 countries worldwide

Demographic
 Gender Male and female
 Age 11-45 years
Psychographic Sport lover

Behavioural Athletes

Target market strategy of Nike

Target marketing is the following phase in the segmentation method, in which the
organisation selects the segments that will enable it to accomplish its objectives most
proficiently and effectively. Nike determines the size, ease of access, accurateness, and
behavioural characteristics of their target market. Nike, especially, has a unique clientele to
cater to. Professional sportsmen and sporty persons are targeted by the brand, which provides
them with specialised and unique items. However, all goods are obtainable, even online, and
Nike's customers have the exclusive facility to form their own designed footwear, making the
company more distinctive and distinguishable from other footwear firms. It's worth noting
that Nike uses psychological strategies to target the consumer by promoting amazing athletes
with incredible accomplishments and successes. This strategy establishes a direct link
between the products of the company and its success. Organic revolution is an inevitable
conclusion when it comes to reinventing the way the organisation does business and forms
sports accessories. As an outcome, Nike employs strong marketing methods in tandem with
the marketing strategy it produces in order to increase recognition of the company's products
among its target consumers, thereby ensuring their individuality and distinctiveness.
Nike's differentiation strategy is to position the brand as the industry front-runner in athletic
apparel. They are capable of developing high-quality items that surpass client anticipations
by concentrating on their line of products. Nike's line of products isn't wide-ranging: they sell
sporty shoes, fitness apparel, and a small number of other items. Their goal is simple: provide
the sportsperson with the tools they want to accomplish. This exclusive emphasis has helped
them to establish effective networks of purveyors and manufacturers capable of providing
high-quality resources.
Positioning strategy of Nike
Positioning is the ultimate phase of STP in terms of market judgments. Nike has established
itself as the industry front-runner in sports materials, uniting high-quality products with
cutting-edge technology. Moreover, the rustle, along with the motto "Just Do It," has
influenced Nike's patrons that the corporation is aspiring and successful, as have promotional
actions that link Nike's brand to amazing feats of notable athletes. It is important to note that
Nike's focus has switched from products to attitudes throughout time. Nike "speaks" to
athletes' emotions via distinct and significant emotions, which distinguishes the firm from
others.
Sustained innovation and improvement, allowing the brand to better satisfy evolving
consumer demands. The company has formed their positioning tactic to give a vibrant
appearance of the items they share to their regulars. They effectively formed an image of that
targeted market segment and properly depicted their things as element of their positioning
strategy when they had picked which market area they envisioned to pursue and compete in.
They highlighted their different and exclusive qualities in comparison to their rival company
because of their positioning strategy, emphasising their exclusivity. They interrelated their
product to the consumer's ethics and understanding, emphasising its plusses. As it appears,
Nike's positioning is founded on the impression or reputation that it promotes and sustains in
relation to its sporting goods. Keeping this in perspective, the corporation uses market
analysis tools to create perceptual maps so that they can assess its items' position in regard to
the rivals.

Figure 1: STP strategy of Coca- Cola

Source:
Discussion and recommendations
One of the crucial challenges that Nike Corporation faces in its market is increased
competition from a variety of different businesses. When there is a lot of rivalry in the
market, firms are obliged to come up with ways to attract clients. Since Nike is not the only
firm in the apparel and footwear sector, it is facing more competition. This could lead to the
creation of other giant companies in the similar industry, like Adidas. When an industry is
expanding, rivalry is more in the case of fewer companies marketing comparable
merchandise or services, and in the case of customers who may simply switch to a competitor
providing for a lower price. In the face of intense competition, one of the most basic methods
can be used by the company is price reduction.
Targeting customers on the basis of socioeconomic segment will be beneficial for the
company. The higher cost range of Nike's items can be a factor in the company's collapse.
Consumers can choose a specific product on pricing instead of choices since different options
are available in the sporting wear area. Customers who are looking for a bargain will nearly
always choose for a firm other than Nike. Nike must find a solution to reduce production
costs and offer a lower price product portfolio in order to maintain its market share.
Regardless of the fact that Coca-Cola Company is the globe 's largest non-alcoholic beverage
company, it is confronted with a number of business and marketing obstacles and hazards.
Customers, government entities, and health experts have recently become more conscious of
the possible health risks connected with sedentary lifestyles and obesity. Obesity is a
multifaceted public health problem. The Coca-Cola Company has a dilemma because it is
focused on the production of beverage products. The corporation must promise to certify that
its vast product line embraces a various range of beverages with health values that direct
matters associated to obesity. Products like diet and light athletic drinks, beverages, and water
can help with this. Consumer desires are now becoming increasingly sophisticated day after
day as a result of globalisation of the market place and enhanced people's lifestyles. As a
result, the Coca-Cola Company is provoked with the challenge of managing with shifting
buyer tastes as regulars want wide range of options. The Coca-Cola Company's marketing
and commercial operations are being profoundly impacted by multiple shifts in customer
demographics and wants, the advent of customers who are endowed with more information
and knowledge, the existence of ageing populations, and limitless lives (Tripodi, 2012). To
be competent to deal with the problem, the company is focused on developing new growth
prospects by its core brands. Furthermore, the company is devoted to growing its number of
products and brands in order to provide more options for consumers' lifestyle needs,
aspirations, and requirements. Another struggle that the firm is facing is the intensifying
rivalry and competence in the global market.
In the nations where it sells its products, Coca-Cola Company competition are both global
and regional. The Company is experiencing severe competition from several well-established
international corporations and many regional competitors, according to Coca-Cola Vice
President Rick Frazier. Coca-Cola must carefully grow into other valuable non-alcoholic
beverage niches of the commercial beverage business to increase its market ability and
efficiency in order to solve this difficulty (The Coca-Cola Company a, 2021). The Coca-Cola
Company is similarly confronting with a marketing hitch as a result of its constant fight with
Pepsi (Chen, 2021). This sort of rivalry has the aptitude to impact purchase behaviour and
requirements, putting the business at threat of be bereaved of market share to a rival.
Moreover, given the low cost of moving to other companies owing to market conflict, this is
a noteworthy distress for the organisation.
The demographic segmentation option is dependent on statistics like the customer's level of
income, area, educational status, age, and gender. Since distinct regions of the world have
distinct demographic factors, the Coca-Cola Company can easily segment its market
depending on demography. Another segmentation path open to Coca-Cola Company is
segmentation based on user behaviour. Some customers show high brand loyalty, whereas
others show low brand loyalty. Some are frequent consumers of a certain brand, while others
are infrequent users. These are characteristics that can be used to divide a market.
Segmentation depending on advantage sought is another market segmentation alternative
open to Coca-Cola Company.  Various customer segments expect multiple things from a
product's use. Coca-Cola also needs to address the problem of gender. This is more
widespread in various age groups, as young people want different forms of enjoyment and
sentiments from using a product than older people. There are customers who want to satisfy
their thirst, some who want to refresh their body, others who want to revitalise their body,
and still others who want to consume. All of these can be used to categorise customers into
distinct segments terms of the advantages they expect from Coca-Cola products.
Segmentation depending on demographic characteristics is the most useful segmentation
strategy to recommend to Coca-Cola Company. This is due to the fact that demographic
variables are simple to discover and categorise (An, et. al., 2018). Several market segments
can be formed utilizing demographic variables to segment a market, varying from market
segments depending on revenue, age, and education level to market segments depending on
the location. One of the elements that can be utilized to assess a segment depending on
market segmentation indicated above is "how successfully are current segments supplied by
other competing companies?" Coca-Cola would have an easier time appealing to a market
segment whose requirements are presently unmet by its rival than one that is adequately
covered by rivals manufacturing identical or alternative goods. Coca-Cola can also consider
the magnitude of the segment when evaluating the preferred segmentation strategy. The
business must now determine its ability to expand in the targeted segment. Size may not
always imply size; it can also refer to a segment's ability to expand swiftly without facing
significant rivalry.
The optimum target segment for Coca-Cola Company would be the income and age market
groups, depending on segmentation depending on demographic variables. A market segment
depending on customer age has the potential to produce lucrative revenue growth since the
business can present quality items to customers at a young age, then create customer trust
with these customers, resulting in constant purchases from these customers until their old age
(Martin, 2011). Moreover, customer segments depending on income have the potential to
achieve lucrative revenue growth because the company may give excellent items to
customers depending on their opportunity to buy them or buying power. Consumers with
great buying power can receive items in big quantities and variations, whilst consumers with
low buying power can receive the similar products but in smaller packed amounts.
Differentiation marketing is a great positioning approach that Coca-Cola Company can use.
Because the recommended segmentation method was based on demographic factors, the
corporation should use a differentiation marketing strategy to position the company in the
appropriate market categories. Differentiation strategy is separating items or services from
the competition in order to appeal to a certain market group (Mou and Kim, 2020). This
method will assist the business in gaining a competitive benefit. Differentiating products
serves to give them a sense of individuality while also giving them a sense of worth to
customers. Unique packaging, branding, and marketing can all be used to set company apart.
In the context of the Coca-Cola Company, items marketed to high-income earners, like those
in urban areas, can be distinguished from those marketed to low wage earners, like those in
rural areas. Differentiation might take the shape of packaging; for example, in metropolitan
regions, beverages may be packaged in elegant and fashionable bottles or cans that are
recyclable, as it is customary for city inhabitants to purchase take-away items. For consumers
living in rural areas, the company can be packaged the same product in smaller packages or
reusable containers, resulting in a somewhat lower price than the similar beverage packaged
in non-returnable containers.
Conclusion:
The contemporary level of achievement by Coca-Cola is because of the underpinning that has
been fostered over the progression of more than a century of hard effort. And their popularity
is the consequence of constant work in marketing strategies, sales economics, and excellent
supply chain management. Yet, their marketing plan is the most imperative facet of their
business. They have effectually showed a different direction in promotion and marketing and
created an industry standard that has yet to be bested.
From a personal standpoint, Coca-Cola can employ market analysis to assess the efficiency of
its planned positioning and product differentiation strategies. To gauge client reaction in the
new market, the corporation can develop a few distinct beverages. Then conduct a poll to find
out what customers think about the products. The company can determine to choose whether
or not pursue the proposed market segment depending on the market reaction for distinct
production and customer responses from the study. This report also includes a variety of
recommendations for STP strategy for Coca-Cola that could aid the corporation to compete
with its rival. The most effective segmentation method suggested in the report to Coca-Cola
Company is segmentation grounded on demographic variables. This is owing to the ease with
which demographic variables can be found and classified. Moreover, t he organisation needs
to adopt a differentiation marketing strategy to position the company in the right market
segments since the approved segmentation strategy was depending on demographic
characteristics.
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