How Companies Use Segmentation Strategy to Improve Their Business

In order to better understand what companies use segmentation strategy, it is first important to understand what segmentation is. Segmentation is the process of dividing a market into distinct groups of consumers with similar needs or desires. There are many different ways to segment a market, but the three most common methods are by geographic location, by demographics, and by psychographics.

Geographic segmentation involves dividing the market based on where consumers live. This can be done at a macro level, such as by country or continent, or at a micro level, such as by city or neighborhood. Demographic segmentation involves dividing the market based on characteristics like age, gender, income, and education level. Psychographic segmentation involves dividing the market based on lifestyle factors like personality type, values, and interests.

Once a market has been segmented into groups of consumers with similar needs or desires, companies can then begin to target their marketing efforts towards those specific groups. The goal of using a segmentation strategy is to more efficiently and effectively use marketing resources by targeting only those consumers who are most likely to be interested in the product or service being offered. This ultimately leads to increased sales and profits for the company.

Some examples of well-known companies that have.

Volkswagen. The Volkswagen group is an excellent example of how market segmentation allows a brand to appeal to very different groups of people

Volkswagen is one of the world’s leading car manufacturers, with a presence in over 150 countries. The company has a long history, dating back to 1937, when it was founded in Germany.

Volkswagen offers a wide range of vehicles, from small hatchbacks to large SUVs, and everything in between. This means that there is a VW model to suit every need and budget.

The company has built its reputation on providing excellent value for money, with high-quality cars that are reliable and affordable. This is evident in its popular models such as the Golf and Polo, which offer great bang for your buck.

VW also has a strong focus on safety, another important consideration for many buyers. Its cars are regularly rated highly by safety organizations such as Euro NCAP.

In recent years, Volkswagen has been working hard to improve its environmental credentials too. It now offers a range of hybrid and electric vehicles, as well as models with low emissions levels.

Coca-Cola. Regarding understanding a broad customer base, few brands are as effective as Coca-Cola

In order to best understand its customers, Coca-Cola has segmented them into four main groups: heavy users, medium users, light users, and non-users.

Heavy users are those who drink at least one can of Coke a day, and make up about 20% of the company’s total customer base.

Medium users drink Coke several times a week, and make up another 60% of customers.

Light users drink Coke occasionally, and comprise the remaining 20%.

Finally, non-users have either never tried Coca-Cola or no longer purchase the product.


Kellogg’s has a long history of innovative marketing campaigns and product development. The company was one of the first to introduce cereal as a breakfast food option and was also an early adopter of television advertising. Today, Kellogg’s continues to be an innovator in the food industry, with new products like Special K Protein Bars and Pop-Tarts Bites.

The company’s segmentation strategy is evident in its marketing campaigns, which are often focused on specific target markets. For example, Kellogg’s has launched campaigns specifically aimed at mothers who are looking for healthy breakfast options for their children. Other campaigns have been targeted at busy professionals who want convenient snack foods that they can eat on the go.

Kellogg’s segmentation strategy has been successful in helping the company grow its market share and sales over the years. By tailoring its products and marketing messages to specific groups of consumers, Kellogg’s has been able to create a loyal customer base that keeps coming back for more.

Christine is a content and visual marketing specialist with more than 10 years of experience crafting content that engages and informs her audience. She has a keen eye for detail and a passion for creating beautiful visual displays that capture her audience's attention. Christine has worked with a variety of brands and businesses, helping them to communicate their message effectively and reach their target audience. She is a skilled writer and communicator, and a strategic thinker who is always looking for new and innovative ways to engage audiences.