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Market Segmentation by Coca Cola - Case Study Example

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Case Study
Pages 4 (1004 words)


A cold drink market is very big and one single strategy cannot satisfy the entire market. Coca Cola must choose market segments with greater potentials in terms of penetration and profitability. The company has already targeted its products on different age groups and different consumers choice…

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Market Segmentation by Coca Cola

Factors influencing consumer choice such as psychological, socio- cultural, economic government, lifestyles, perception, motivation, attitudes, consumer behavior toward a cold drink, family preference reference group, disposable income, discretionary income and other relevant factors have to be taken into account for segmenting the market and penetrating into different niche markets.
For last 5-6 years many banks and other financial companies targeted low-income groups with bad credits for sub-prime mortgages. These debtors were risky on the standard of credit rating below 6 and were expected to default one day or other. The real motive of the banks to extend credits to such borrowers were to earn quick profits in the background of flush of liquidity with then after the stock market bust in 2001 and the craze of many people to have his own house at any cost. This two supply and demand poles met each other. Financial companies became aggressive in targeting this segment for loans so much so that liquidity with them started falling, thereby creating pressure on lending rate and the resultant credit control by banks. There were numerous defaults in repayments causing credit crisis. In recent years housing prices in USA, were so steeply high that there was speculation of house bubbles.
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