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IMDR’s Journal of Management Development & Research 2023-24
To further understand market segmentation more thoroughly we will go through three well known company’s
examples.
Coca-Cola.
Coca-Cola has cemented its position in the market by employing successful marketing methods and
approaches that cater to a wide range of consumers. Coca-Cola employs several market segmentation
techniques to generate goods that appeal to a wide range of consumers, with a wide range of products
accessible in nearly every country on the planet. There is very little that this business hasn't thought of, from
recyclable packaging to different pricing points and even caffeine-free cola vs. energy drinks, plus different
seasonal specials. Furthermore, they acknowledged that Asian customers have a preference for sweeter tastes
than that of Americans or Europeans. They altered their recipes of their drink to accommodate varying tastes.
Coca-Cola divided up its customer base geographically in order to better understand how cultural and climatic
variations influence consumers' purchasing decisions. By customizing their service, their business was able to
stay ahead of the competition and reach a larger market.
L’Oreal.
One of the most well-known beauty brands in the world is L'Oreal. Numerous customers have remained
faithful to the brand for many years. It is maybe not unexpected that senior customers find them to be highly
popular. In the Netherlands, the average L'Oreal client is in their mid-50s. Having said that, the business
discovered that they do not connect effectively with younger customers. They have not succeeded in doing so
by merely classifying the customers according to age.
L'Oreal teamed together with Google and McCann to address this. They were interested in finding out how to
develop segmentation criteria that are more precise. The brand segmented Millennials and Gen-Z into batches
based on behaviour in addition to age. They produced twelve different ad versions by utilizing Google's
audience segmentation. Each is intended for a certain set of prospective customers. They made a video
advertisement specifically for young music enthusiasts. With the slogan "99 problems, and your skin is one?"
it advertised a product for those with acne-prone skin. The advertisement relates to a well-known hip-hop
classic that Millennials are likely to be familiar with.
Different Types of Market Segmentation.
To identify the ideal target population, markets may be segmented in a variety of ways:
