MARKETING STRATEGIES 1. MARKET SEGMENTATION The major segmentation variables geographic, demographic, psychographic, and behavioral segmentation. 1.1.

. Geographic segmentation 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. 1.2. Demographic segmentation In demographic segmentation, the market is divided into groups on the basis of variables such as age, family life cycle, gender, income, 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. *Age and Life-Cycle Stage 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 Coca-Cola Company targets is the youth because there is a much need of refreshment and energizers to cope up with their daily activities. *Gender Gender 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. *Family size Family size basis is also a base segmentation for Coca-Cola. In our society, we have families with different family size. So Coca-Cola makes a variation in their served bottle size into many ways such as 500ml, 1L, 1.5L, 2L pack. People can easily choose a suitable pack based on their family size. *Income Coca-Cola segments different income levels by packaging. For example, for people with a low level of income, the company has small returnable glass bottle; for the mediocre class it has non-returnable bottle, and for people with a high level of income it has Coke tin. *Social Class Social class has a strong influence on preference in food and drinks. Coca cola design products for specific social classes. 1.3. Psychographic segmentation 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. *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.

*Personality Coca Cola Company is using personality variables to segment markets. They endow CocaCola products with a brand personality that corresponds to a target consumer personality. 1.4. Behavioral segmentation 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, buyerreadiness stage, and attitudeare the best starting points for the construction of market segments. *Occasions Coca Cola consumers can be distinguished according to the occasions when they develop a need, purchase a product, or use a product. Occasions segmentation can help firms expand product usage. *Benefit sought Sometimes, for the promotion strategy of Coke, Coca-Cola Company introduces prizes in the top cover. Table: Summary of market segmentation variables of Coke

Variable Geographic

Typical breakdowns - Countrywide distribution network - Focus on urban and suburban areas

Demographic Age Gender Young people Both male and female customers

Family size Income Psychographic Social class Life style Personality Behavioral Occasions Benefit sought

Variety of packages for different family sizes All

All Modern, busy life style, mobile generation Brand personality

When customers develop a need, purchase or use a product Prizes on packages

2. TARGET MARKETS The target market for Coca cola is very wide as it satisfies the needs for many different consumers, ranging from the healthy diet consciousness through Diet Coke to the average human through its best selling drink regular Coke. Most Coke products satisfy all age groups as it is proven that most people of different age groups consume the Coca Cola product. This market is relatively large and is open to both genders, thereby allowing greater product diversification. Cokes commercials basically based on young generations, so the young generation is the target market of Coke because they want to represent Coke with the youth and energy but they also take the old people into consideration they take then as a co-target market.

3. POSITIONING Bottle Sizes: The company offers their products in different bottle sizes which include:

SSRB LRB NRB PET CANS

Standard Size Returnable Bottle Litter Returnable Bottle No Return Bottle or Disposable Bottle 1.5 or 2 Liter Plastic Bottle Tin Pack 330 ml

Packaging: Coca cola products are available in different packaging: 24 Regular Bottle Shell. 6 Bottle Pack for 1.5 PETs. 12 Bottles in a pack for Disposable Bottle. 24 Cans in one crate.

4. MARKETING MIX The marketing mix is probably the most crucial stage of the marketing planning process. The marketing mix refers to the combination of the four factors (price, promotion, product, and place) that make up the core of a businesss marketing strategy. 4.1. Product Each design and logo of Coca-Cola has flexible transformation, creativity and appropriateness to appear on advertisements, T-shirts, beach towels, hats, which creates a complete marketing campaign for Coca-Cola. Coca Cola has recently been honored the Platinum Pentaward 2009 for its summer 2009 designs, which is the noble prize for designing eye-catching and unique product package. With this design, Coca-Cola has confirmed its top position for the package design styles of beverages.

Also Coca Cola continuously innovates its products with more beautiful and easier-to-use packaging design. Coca Cola bottle packaging includes: 330ml cans, bottles Pet 1.5L, 330ml tank (24L / T). The company also introduced plastic bottles 390ml with compact and elegant design to meet the shopping needs of each customer. 4.2. Promotion Price deal: A temporary reduction in price. Loyalty rewards program: Consumers collect points, miles, or credits for purchases and redeem them for rewards. Coupons: Coupons have become a standard mechanism for sales promotions. On-line couponing: Coupons are available on line. Consumers print them out and take them to the store. Online interactive promotion game: Consumers play an interactive game associated with the promoted product. Contests/sweepstakes/games: Consumers are automatically entered into the event by purchasing the product. 4.3. Place Coca-Cola beverages are produced in the three bottling plants located in Ho Chi Minh City, Hanoi and Da Nang. In 2001, the Vietnamese government agreed to allow the merger of the three bottling plants under the centralized management structure, in which the Coca-Cola bottling plant in Ho Chi Minh City performs the management role. Two bottling plants in Hanoi and Da Nang currently operate as two branches of the Coca-Cola Company in northern and central Vietnam respectively. These manufacturing plants enables the company to expand the distribution network in all three areas, providing products for the agencies in those areas. For beverage products, distribution is important. Since Pepsi entered Vietnamese market before Coca Cola, it took over a large number of distributors. Hence Coca Cola need to

continue to expand its distribution network, through the agencies, cafes, restaurant, etc. and to attract dealers by increasing the support for active agents such as gifting, decorating shop support, financial support. 4.4. Price Since Coca Cola Vietnam faces a major threat from its competitor Pepsi Co., so naturally the pricing is done keeping in view the increasing rivalry with Pepsi. Pricing is basically standard for all over the world. Price changes occur seldom after a longer period of time say, a year etc. Mostly prices are devoid of governmental and/or political laws and regulations but in Vietnam, due to an ever increasing rate of inflation, prices have increased in a short span of time. Coca Cola consider the buyer's perceived value, not the seller's cost as an important basis for pricing. They use the cost factor prices in the marketing mix to build perceived value in the minds of buyers. Coca Cola pricing strategy of market penetration: Coca Cola selects low price strategy for new products, in the hope that will attract are a large number of customers and gain a large market share. Discount pricing: Coca Cola will adjust its prices to commercial customers who pay ahead of time, buy products in large quantities.