How Coca Cola and Pepsi Use Segmentation in Consumer Product Industry

Abstract

Segmentation of the market is one of the most crucial marketing tools that many firms have effectively used to achieve a sustainable competitive advantage in highly competitive world markets. It helps delineate markets based on the specific needs and desires of the consumers. Coca Cola and PepsiCo are the two relatively large beverage companies in the world, they are a great example of how effective market segmentation can help build stronger and sustainable consumer retention and loyalty. However, not much research has been done on their business segmentation. This paper, therefore, bridges the gap by focusing on the two companies by comparing their segmentation strategies. The research concludes that both companies use demographic segmentation strategies. Suggestions are given to the two companies in this paper, that is, they should work together to expand their current market share rather than do that individually. That way, the two leading beverage firms will be able to reach out to as many people as possible and that would increase the market share and competitive advantage which is beneficial to both, and this paper also provides some references for the development of other companies.