The STP process (segmentation, targeting, and positioning) is undertaken by marketers in order to have a better understanding of consumer needs so that a more effective marketing strategy can be developed.

In this case study, a total of eight different market segments for the cold beverage market have been provided.Let's assume that the cold beverage market extents to sodas, juice, energy drinks, milk-based drinks, water, sports drinks, and so on - but not alcohol products. A quick overview of each market segment is provided below

Really thirsty

This group of consumers is seeking a fairly straightforward functional benefit from their consumption of a beverage.

On the go

The on-the-go market segment is a busy group of consumers who tend to eat and drink while they are traveling.

Need a boost

This market segment consists of those consumers are feeling rundown or tired during the day.

Variety seekers

Variety seekers are consumers that have limited brand loyalty and will consume a broader selection of drinks, depending upon their taste and situation at the time.

Health focus

The health focused market segment consists of consumers who make their food and beverage choices based upon being healthy and eating well.

Sporty

This market segment consists of consumers looking for products that are helpful when playing sport or while exercising.

Hold the sugar

These consumers may have particular needs such as weight loss goals or being diabetic, but in most cases they are looking to cut some calories from their daily diet.

Just feel like it

This consumer segment is attracted to drinks for enjoyment and refreshment, rather than for any functional (thirst) benefits.

QUESTIONS

1. Review the above market segments and identify which segments would make attractive target markets for a new soft drink company wanting to launch their product in the cold beverage market. Outline the basis you used to select the most attractive segments.
2. Using your list of target market/s, identify the types of beverages (e.g. bottled water, soda, energy or sports drinks, juice, milk) and flavors that would best fit the needs of each target market.
3. Develop an appropriate marketing mix (7Ps) based on the selected target market/s. Your marketing mix will effectively deliver the proposed strategy.