Coca Cola Case Study

Analysis Coca-cola Amatil’ brand Mount Franklin market segment from case study This essay depend on the case study ‘water, water, everywhere’ to analysis Coca cola Amitil’ brand Mount Franklin bottled water’s major market segment, and justify the reason of why this is the prime target segment for Mount Franklin. Coca-cola Amatil’s brand Mount Franklin is the number-one brand of bottled water in Australia. An effective market segment can be a reason of that. A market segment consists of a group of customers who share a similar set of needs and wants’ (Kotler, Keller & Burton, 2009). 04). Segmentation helps organisations to manage diverse customer needs by identifying homogenous market segments (Dibb & Simkin, 2010). In this essay, I will analyse Mount Franklin major market segment follow by the major segmentation variables-geographic, demographic, psychographic, and behavioural segmentation (Kotler, Keller & Burton, 2009). Geographic segmentation calls for dividing the market into different geographical units such as nations, states, regions, countries, cities, or neighborhoods’ (Kotler, Keller & Burton, 2009,p213). Coca-cola Amatil (CCA) is the local Coca-cola licensee, manufacturer and bottler operating in Australia, New Zealand, Fiji, Indonesia and Papua New Guinea (AFR business case study) Mount Franklin as one of CCA’s brand certainly targeted in these countries, and especially for Australian urban people.

As case study said that ‘as little as 20 years ago the market share of bottled water in Australia was almost zero’, means that focus on Australia as a target market because of it has a potential market. ‘Demographic segmentation is divide the market into groups on the basis of variables such as age, family size, family life cycle, gender, income, occupation, education, religion, race, generation, nationality, and social class’ (Kotler, Keller & Burton, 2009, p215).

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According to the Australian Bottled Water Institute, bottled water is consumed by people across all demographics and occupations but the large majority tends to be young single and couples, in particular females aged between 14-35years. In addition, according to Coca-cola’s market research, Mount Franklin water has 99 percent brand awareness and 43 percent of females aged 25-39 say that Mount Franklin is their favourite brand. Mount Franklin segment their major target market into younger females aged between 14-39 years, especially for 25-39 years. Psychographics is the science of using psychology and demographics to better understand consumers. In psychographic segmentation, buyers are divided into different groups on the basis of psychological/personality traits, lifestyle, or values’ (Kotler, Keller & Burton, 2009, p221). Follow by the lifestyle shift to healthier, more and more people move away from carbonated, sugared-drinks to kilojoule-free beverage options and convenience of cleaner, and more natural and ready-to-drink chilled water.

Mount Franklin is their good choice, therefore the target market will focus on those people who being more health conscious, contemporary and socially aware. ‘Behavioural segmentation divides buyers into groups on the basis of their knowledge of, attitude toward, use of, or response to a product’ (Kotler, Keller & Burton, 2009, p223). Depending on this, Mount Franklin focus on the people who have a hard-core loyal or split loyal. They provided a Pink Ribbon Campaign to build loyalty to the Mount Franklin brand.

Mount Franklin market segment is effective and lead to number one brand of bottled water in Australia. The first criterion for evaluating the success of a market segmentation procedure was called homogeneity. This referred to having a segmentation which maximized between-segment variation and minimized within-segment variation (Moscardo, Pearce & Morrison, 2001). Mount Franklin’s target market is focus on females aged 25-39, and being more health conscious, contemporary and socially aware, which have very clear difference between others and similary needs and wants within the segment.

An effective segmentation depend on some criteria, segment measurability, enabling segment size and potential to be judged; accessibility, in order that a segment can be reached and served; substantiality, ensuring that a segment is of sufficient size and profit potential; differentiability, segment need to distinguishable and respond differently to different marketing-mix elements and programs: and actionability, so that a segment can be reached and served with a marketing programme (Dibb & Simkin, 2010).

Mount Franklin’s target market has an enabling segment size to measure, large and profitable segment to serve (young females), can be reached and served, differently needs and wants with others such as males, and effective programs can be formulated for attracting and serving the segment, such as Pink Ribbon Campaign attracted a lot people with high social responsibility to buy it. To justify Mount Franklin has successful target market segmentation, commercial performance can be evidence.

In 2001, CCA earned 95 percent of its revenue from carbonated beverages and only 5 percent from non-carbonated source. By 2007, this had changed to 67 percent and 23 percent respectively. Market segmentation is very important because firms count on segmentation techniques that enable them to craft their selling strategies around a buyer’s unique personality, beliefs and organisational influences (Barry & Weinstein, 2009). Mount Franklin has a successful market segment which focus on young females aged 14-39 especially 25-39 years, and with health conscious, contemporary and socially aware.

The regions focus on urban where in Australia, New Zealand, Fiji, Indonesia and Papua New Guinea. In order to extend market and profitable organization, Mount Franklin still need to segment market with changing variables. References AFR business case study, accessed 11/09/2011, http://www. afrbiz. com. au/case-studies/coca-cola-water-water-everywhere/Page-1. html? showall=1 Barry, J & Weinstein, A 2009, ‘Business psychographics revisited: from segmentation theory to successful marketing practice’, Journal of marketing management, vol. 5, no. 3-4, pp315-340. Dibb, S & Simkin, L 2010, ‘Judging the quality of customer segments: segmentation effectiveness’, Journal of strategic marketing, vol. 18, no. 2, pp113-131. Kotler, P, Keller, K & Burton, S 2009, Marketing management, Pearson education Australia, Frenchs Forest. Moscardo, G, Pearce, P & Morrison, A 2001, ‘Evaluating different bases for market segmentation: a comparison of geographic origin versus activity participation for generating tourist market segments’, Journal of travel



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