R E P O R T

Principles of Marketing




Bangladesh Prospective


Prepared For
Shahriar Akter
Course Instructor
Principles of Marketing
East-West University of Bangladesh


Prepared By
S. M. Benzir Ahmed
ID: 0000-0-00-000
Department of Business Administration
East-West University of Bangladesh





Date of Submission: 16 March 2005

2

15 March 2005

Shahriar Akter
Lecturer
Department of Marketing
East-West University of Bangladesh
Dhaka.

Dear Sir,
In accordance to your advice I have made my report on Steps in Market
Segmentation, Targeting and Positioning of Coca-Cola Company.

To serve the purpose, I have followed standard research methodology to extract
the findings and also applied sophisticated data analysis techniques to get
consistent and sound output. As per the direction of the course instructor, I have
tried my best to highlight my finding through applied marketing concepts and
models.

I therefore, sincerely hope that, this report will fulfill the requirements suggested by
you under the course MKT 101. I shall appreciate if you please spend some of
your valuable time by calling on me for a discussion in connection to the
interpretation of the report.

Sincerely Yours
S. M. Benzir Ahmed













3

A C K N O L E D G E M E N T


Firstly, I would like to give thanks to our instructor Mr. Shahriar Akter who gave
me the concept to make a report on Steps in Market Segmentation, Targeting and
Positioning of Coca-Cola Company. While making the report, I got to know many
new terms, related with the subject. He was always helpful towards me to meet my
confusion related to this project.

I am also thankful to Coca-Cola Company as they have made their web sites with
lots of information, which also helped me to make the report.

I am also thankful to Google.Com as they have made their powerful search
engine enriched with various options and resources.

At the end I want to thank the administration of East-West University who has
provided me the facilities of computer laboratory and internet.




























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C O N T E N T S


Title.......Page No.
Executive Summary 05
Levels of Marketing Segmentation 06
Variables to segment a market 07
Market Coverage Strategies 08
Target Market Selection 09
Ways of Position 10
Weapons of Position 11
Bibliography 12




































5

Executive Summary
The objective of the report is to find out the Steps in Market Segmentation,
Targeting and Positioning of Coca-Cola Company. After researching on this
company I have found that, in levels of marketing they follow segment marketing
and in segmentation they follow behavioral segmentation. As they have three
different types of product they follow differentiated marketing with different
marketing mix. In target market selection they are following full market coverage.
Coca-Cola Company follows 4 ways of positioning (Price, Product User, Product
Class, Competition and Symbol). Their effective ways of positioning help them
much to increase their profit.







































6

Segmentation
Segmentation is a division of market with similar needs.

Levels of Marketing Segmentation
There are mainly two levels of marketing segmentation.
1. Mass Marketing
2. Micro Marketing

1. Mass Marketing
In mass marketing level, same product is consumed and bought by all customers.

2. Micro Marketing
Micro Marketing can be divided into four parts.
a] Segment Marketing
b] Niche Marketing
c] Local Marketing
d] Individual Marketing

a] Segment Marketing
Particular market segment, product and consumer who share a similar set of
wants.

b] Niche Marketing
It is a sub segment. Generally, it is ignored by competitors.

c] Local Marketing
Meeting the needs of particular locality is called local marketing. Here marketing
mix is designed for particular regions.

d] Individual Marketing
In individual marketing customer concept is applied. It is a kind of personalized
marketing.




Recommendation
Coca-Cola Company is performing Segment Marketing. They have 3 varieties.
1. Coca-Cola,
2. Sprite
3. Fanta.
These are consumed by different people of different tastes.







7


Variables to segment a market
There are four variables to segment a market.
a] Geographic Segmentation
b] Demographic Segmentation
c] Psychographic Segmentation
d] Behavioral Segmentation


a] Geographic Segmentation
Geographic segmentation is to dividing market into different geographical units
such as nations, states, regions, country, city or neighborhoods.

b] Demographic Segmentation
Dividing markets into groups based on demographic variables such as age,
gender, family size, family life cycle, income, occupation, education, religion, race,
generation and nationality.

c] Psychographic Segmentation
Dividing a market into groups based on social class, lifestyle or personality
characteristics.

d] Behavioral Segmentation
Dividing a market into groups based on consumer knowledge, attitude, use or
response to a product.




Recommendation:
Coca-cola is performing behavioral segmentation. They have divided their market
based on consumers taste and personality.

















8

Targeting
Targeting means to selecting attractive segments to enter.

Market Coverage Strategies
There are three market coverage strategies.
a] Undifferentiated Marketing
b] Differentiated Marketing
c] Concentrated Marketing

a] Undifferentiated Marketing
Marketing approach ht views the market as one big market with no individual
segments and thus requires a single marketing mix.

Advantage
Can get the facilities of Economies of Scale

Disadvantage
No product variety
Vulnerable to competition

b] Differentiated Marketing
A strategy that chooses two or more well-defined market segments and develops
distinct marketing mix for each.

Advantage
Greater financial success

Disadvantage
High raw material and promotion cost
Cannibalization: situation that occurs when sales of a new product cut into sales of
a firms existing product.

c] Concentrated Marketing
A strategy used to select one segment of a market for targeting marketing efforts.

Advantage
Concentration of resources
Small segment
Meets EOS [Economies of Scale]

Disadvantage
Adequate profit does not come
Vulnerable to competition






9

Recommendation:
Coca-Cola is performing Differentiated Marketing. It has chosen two or more well-
defined market segments and has developed distinct marketing mix for Coca-Cola,
Fanta and Sprite - each.

Target Market Selection
A group of people or organizations for which an organization designs, implements
and maintains a marketing mix intended to meet the needs of that group, resulting
in mutually satisfying exchanges.

There are five patterns of target market selection.
Here: P = Product, M = Market

Single-Segment
Concentration
M1 M2 M3
P1
P2
P3
Selective
Specialization
M1 M2 M3
P1
P2
P3
Product
Specialization
M1 M2 M3
P1
P2
P3
Market Specialization
M1 M2 M3
P1
P2
P3
Full Market Coverage
M1 M2 M3
P1
P2
P3



Recommendation:
Coca-Cola Company is performing Full Market Coverage where they are serving
all segments with their products.

Full Market Coverage
Teen Young Old
Coca-Cola
Sprite
Fanta






10


Positioning
Positioning means occupying a clear and distinctive place in the mind of target
customers.

Ways of Position
There are seven ways of position.
a] Price/Quality
b] Product Attributes
c] Product User
d] Product Usage
e] Product Class
f] Competition
g] Symbol




Recommendation:
In that part Coca-Cola Company is performing mainly 5 ways among 7.

Price
They always try to provide their product within lower amount, so that the customers
can buy the product.

Product User
Though, their product is drunk by all, but they specially do their promotional
activities to gain the market share of young generation.

Product Class
For product class they have introduced can and bottle with different quantity.

Competition
Coca-Cola Company is also competing with other competitor companies based on
packaging, price and promotions.

Symbol
Symbol is an important factor. Because, from the very beginning they are using the
same Symbol and today they have gained a brand facility.










11


Weapons of Position
There are four weapons of position.
a] Product [ Quality, Design, Features, Packaging ]
b] Price [ Cost Based Pricing, Value Based Pricing, Competitor Based Pricing ]
c] Placing [ Exclusive Distribution, Selective Distribution, Intensive Distribution ]
d] Promotions [ Rational Appeal, Emotional Appeal, Moral Appeal ]




Recommendation:
Coca-Cola Companys Weapons of Positioning are described below.

a] Product
They always try to provide their product with low price with different packaging. For
example they have introduced can beside bottle.

b] Price
They follow both: Cost Based Pricing and Competitor Based Pricing. They have
charged low price to gain the facility of Economy of Scale. If any company charge
low price of their product at the same time they also charge their price lower.

c] Placing
As it is a soft drink, Coca-Cola Company follows Intensive Distribution. It is found
more or less everywhere in Bangladesh.

d] Promotions
In terms of promotions they use Emotional Appeal.




















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BIBLIOGRAPHY

1. MARKETING by Philip Kotler & Gary Armstrong, (10
th
Edition) Prentice Hall:
India
2. http://www.aimd.org/nonprofit/aimd/default.aspx
3. http://www.vintagedepotdirect.com/vintage-patches.html
4. http://educationshaon.net.tc