Target Market and SWOT Analysis for Coca Cola

TargetMarket and SWOT Analysis for Coca Cola

TargetMarket and SWOT Analysis for Coca Cola

Segmentation is an indispensable aspect within a firm’s marketingstrategy, which allows the firm to define the specific products fordifferent clients. Coca Cola exists to value and energize all peopleit touches thus, it operates in all parts of the world (Aaker,2012). It is worth noting that Coca Cola does not have a definitesegment or a specific target market, but rather it adjusts itsmarketing strategy by developing new products. The company’s targetmarket only changes during advertising where the company targets aspecific market. In terms of age and demographic, the company targetseveryone since the firm considers each client a target and a possibleclient. However, the main clients belong to the 12 to 30 age bracket,which covers roughly 40% of the firm’s total age segment (Aaker,2012). The company has an extensive popularity and appeal hence, itdoes not have a specific target market in terms of behavior,psychology, and geography. It is essential to note that the firm haspresence throughout the world, which means that it appeals to clientsfrom different geographical locations. However, in terms of behaviorand psychographic criteria the company has specific products targetedfor specific clients, for example, Hajime designed for Japan, FullThrottle for athletes, and Coca Cola diet for health consciouspeople. This means that the firm does not have a definite targetmarket, but it attempts to target different sexes, age groups,lifestyles, ethnic groups, and interests.

SWOTanalysis

Strength:

  • Brand awareness and reputation

  • Strong distribution network

  • Diversified and extensive range of products (Wang, 2015)

  • Strong advertising and marketing

  • Customer loyalty

  • Large market share

Weaknesses:

  • Negative publicity especially in issues concerning water management

  • Little presence in health products and focus

  • Competition especially from Pepsi

Opportunities

  • Growth in bottled water sales and consumption

  • Sales opportunities in developing countries

  • Increasing demand in healthy beverages

  • Enhanced supply chain networks

Threats

  • Water scarcity

  • Intense rivalry

  • Trends in health consciousness

Coca Colaremains one of the most respected and recognized brands in the worldespecially since most people recognize the firm’s products with itssignature logo and distinct taste. The firm has utilized thisrecognition as a competitive advantage to beat off rivals, as wellas, venture into sponsorships, for example, FIFA World Cup (Wang,2015). Moreover, the company has an extensive distribution and supplychains, which increases efficiency and ensures it reaches a highpercentage of clients. With its large market share and marketingmuscle, the company manages to offer diverse range of products andreach to diverse groups. However, the firm faces some weaknessesespecially in finding sustainable and clean water sources,competition, and negative publicity where numerous groups have raisedlawsuits against the firm because of its vast water consumption evenin areas with scarcity. On the other hand, the company has greatopportunity for growth given the steady growth in global populationand increased demand especially in developing countries. The companyhas also diversified its products, which gives the firm anopportunity to extend its market, for example, with purchase ofbrands. In terms of rivalry, the company faces intense competitionfrom Pepsi and other companies and at the same time experience shiftin products with people becoming more health conscious. It is worthnoting that the company’s brand recognition and large market shareallows it to take advantage of numerous opportunities in productionand marketing. However, weaknesses in water management and littlepresence in health products, as well as, threats in terms ofcompetition and water scarcity continues to hamper some of the firm’scompetitive advantage.

Reference

Aaker, D. A. (2012). Brand extensions: the good, the bad and theugly.&nbspSloan management review,&nbsp31(4).

Wang, M. (2015). Brief Analysis of Sports Marketing Strategy Adoptedby Coca Cola Company.&nbspAsian Social Science,&nbsp11(23),22.