NAME:MD Riduan ID:1703610109348
NAME:MD Riduan ID:1703610109348
NAME:MD Riduan ID:1703610109348
ID:1703610109348
1.INTRODUCTION
.1 Background
Coca-Cola first began selling Coca-Cola in 1886, when Dr John S Pemberton charged customers just five
cents a bottle. Since then they become the world‟s leading soft drinks manufacturer with more than
700,000 employees and 500 brands(The Coca-Cola Company, 2018)1 . The business is global in scale
where it operates everywhere as a local company, including Malaysia. Coca-Cola brand has been in
Malaysia since 1936, the company only established its corporate presence here 1979 by franchised its
bottling and distribution to local partner F&N Coca- Cola (M) Sdn Bhd. With an enduring commitment to
building sustainable communities, in Malaysia have chosen to focus their sustainability efforts on three
areas of opportunities where they believe can make a meaningful difference to. It is known as three
„Ws‟, Women, Water, and Wellbeing as a way of giving back to the communities in which they operate.
Nothing beats the taste of Coca-Cola. Designed to go with everything, the taste of Coca-Cola Classic has
remained unchanged for over 129 years. Coca-Cola is the most popular and biggest-selling soft drink in
history, as well as one of the most recognizable brands in the world (The Coca-Cola Company, 2018).
The major segmentation variables are geographic, demographic, psychographic, and behavioral
segmentation (Scribd Inc., 2018).
Geographic segmentation calls for dividing the market into different geographical units such as regions,
cities, or neighborhood. Coca-Cola has a countrywide network of product distribution but the company
segments more in urban and suburban areas as compared to rural areas.
In demographic segmentation, the market is divided into groups on the basis of variables such as age,
family life cycle,, occupation, education, religion, race, generation, nationality, and social class.
Demographic variables are the most popular base of Coca-Cola Company for distinguishing their
customer groups. The reason is that consumer wants, preferences, and usage rates are often associated
with demographic variables. Another is that demographic variables are easier for Coca-Cola to measure
because they can evaluate or conduct surveys for the demographic segmentation
Coca-Cola Consumer wants and abilities change with age. Age and life cycle can be tricky variables
because there are different needs and wants as accord to the age of a person. The main sector in which
CocaCola Company targets is the youth because there is a much need of refreshment and energizers to
cope up with their daily activities.
is also an issue needed to be given prior by Coca-Cola. Men and women tend to have different
attitudinal and behavioral orientations, based partly on genetic makeup and partly on socialization
practices. Coca Cola targets both genders with its wide variety of drinks. This market is relatively large
and is open to both genders, thereby allowing greater product diversification.
In psychographic segmentation, Coca Cola buyers are divided into different groups on the basis of
lifestyle or personality or values. People within the same demographic group can exhibit very different
psychographic profiles, for that reason Coca Cola Company designed and made product which are
suitable for their personality.
2.3.1. Lifestyle
People exhibit many more lifestyles than are suggested. People differ in attitudes, interest, activities,
and these affect the goods and services they consume. Coca-Cola Company presented products which
are suitable for modern, busy life style (shortage of time) and mobile generation.
2.3.2. Personality
Coca Cola Company is using personality variables to segment markets. They award Coca-Cola products
with a brand personality that corresponds to a target consumer personality.
In behavioral segmentation, Coca Cola buyers are divided into groups on the basis of their knowledge
of, attitude toward, use of, or response to a product. Many marketers believe that behavioral variables-
occasions, benefits, user status, usage rate, loyalty status, buyer-readiness stage, and attitude are the
best starting points for the construction of market segments.
2.4.1 Occasions
Coca Cola consumers can be distinguished according to the occasions when they develop a need,
purchase a product, or use a product. Occasion‟s segmentation can help firms expand product usage.