Generally, the paper 'The Potential Market Segmentations That Is Available, Market Coverage Strategy for Pepsi" is a good example of a marketing assignment. Before formulating strategies that segmentation will be based on, it is paramount to understand the characteristics of the market (Croft, 1994). Therefore, the characteristics usually differ and in the case of iced tea and especially based on the case study, these bases will be used: Portability – many people constantly are in the move and thus it is important that anything that comes their way should be transported or carried around easily.
Therefore, portability is a major concern to both the consumers and retailers of the beverage. Environmental concern – temperatures and period e. g. winters and summers determine the extent to which consumers will appreciate a drink. Iced tea is suitable during the hot season or during the hot period of the day. Hence, a company should understand the climate conditions of a region to better develop strategies and expectations that are viable. Age – this is a major base that many producers and manufacturers base their products. Age differs, and the drink consumers’ characteristics requirements differ relative to drinks that are offered.
This means that understanding the age requirements through the perspective of iced tea will ensure that a formidable market is developed. Distribution Channel – the products that are developed should reach consumers. Hence, at the time of developing a drink, it is paramount to understand the channels that will ensure that the drink penetrates the highest market possible. An example from the case study is when Coca Cola teamed up with Nestle to improve their brands. 2. The potential market segmentation that is available Market segmentation is differentiating a market into different but homogeneous groups of consumers.
This will allow an organisation to concentrate meagre resources resulting in maximisation of sales translating in the improvement of revenues (Wedel and Kamakura 1999). Thus, some potential for iced tea markets include: Geographic locations – the ice tea is favourable in those environments that have high temperature related climate conditions. This means that the organisations within these product offerings will focus on those regions that have high temperatures. Age – Age is a major aspect especially when it comes to health conditions and peer relevance.
Hence, the age factor will be used to market specific flavours, tastes and ingredients contents of the iced tea. Accessibility or distribution channels – there are markets that are difficult to reach and it could be crucial to segment the market in a way that will ensure that the entire market can be accessed. This can be through segmenting in terms of rural versus urban, train commuters, students going to school, etc. Behavioural segmentation – this is mostly based on variables such as price sensitivity, usage rate and patterns, benefits sought and brand loyalty.
Understanding the basis in which consumers appreciate the product will provide a base that will be used to analyse and determine the appropriate market segments in terms of behavioural characteristics. 3. Forecasting demand in the ice tea market and other markets During forecasting the requirements of consumers, it is important to utilise market analysis to determine whether a market is attractive and to understand evolving opportunities, threats, weaknesses and strengths of the organisation (McDonald 2004).
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