Question

Of the five methods for describing market segments, pick one of them and demonstrate an understanding of its use by explaining how a company of your choice has utilized it.

Answer 1

One of the most common market segmentation methods used is Demographic segmentation. According to this method, the market is segmented based on age, gender, income, education, family size, race, and religion. Once the segmentation is done, the company or organizations target the group with products. For example, age groups between (15-20) would be targetted with different products, and age groups between (20-25) might be targetted with different Products. The consumers in each age group are targetted based on what the average population of each group likes or prefers.

Demographic segmentation of Coca-Cola:

Age group	20-30	30-40	13- 27
Products	Oasis Juice(different flavors)	Diet coke	Powerade

In the above table, the demographic segmentation of Coca Cola based on the different age groups can be seen

Age group (20-30):

The individuals between the ages of 20-30 are targeted with products that have different flavors considering the tastes and preferences of consumer groups of that age. Some of these flavors are lemon or orange tangerine. The age group prefers a variety in taste and here Coca Cola has accomplished that by providing a range of choices based on the preference of the age group.

Age group (30-40):

The individuals in this age group are more conscious about their health and prefer having drinks that have low calories and taste. For this age group, Coca Cola has targetted them with products that have low calorie using Diet coke as they are conscious of their health,

Age group (13-27):

Within this age group, the presence of athletes demands a drink that can be used as an energy drink. For such individuals within the age group, the Powerade drink serves to meet a need and Coca Cola has targeted individuals of this group with products like these.

Similarly, companies can also target groups based on the family size where the products are mostly based on the size of the family. There are other factors that contribute to a demographic segmentation based on gender and income groups.