3 Brands That Showed Excellent Use Of Marketing Segmentation Strategy

Marketing Segmentation Strategy

Market segmentation is one of the oldest marketing tricks in the book. Segmentation, Targeting, and Positioning (STP) is a dynamic strategic approach to modern marketing. Marketing segmentation strategy is one of the most effective tools for marketers to cater to their target group of customers. It is a process of dividing the market of potential customers into various segments on the basis of characteristics.

Customized customer experiences lead to higher customer loyalty and better-focused marketing campaigns. The process helps brands to organize their customers along demographic, behavioral, geographic, or psychographic lines- or a combination of them.

This process of fragmentation is useful when creating marketing communications plan as it facilitates marketers to prioritize propositions and then develop personalized and relevant messages to engage with different audiences.

Prioritize Propositions

Market segmentation significantly reduces the risk of an unsuccessful or inefficient marketing campaign. When marketers divide a market based on fundamental characteristics and personalize their strategies based on that particular information. There is a high probability of success than if they are to create a generic campaign and try to implement it across all segments.

Brand Strategy

Great brand strategy revolves around clearly articulating your differentiation against competitors. It is highly recommended that you must continually push these differentiators to customers. This helps in creating brand positioning in the minds and hearts of the customers. One of the best ways to obtain this is by aligning your branding with your unique value propositions.

Top Brands & Use of Marketing Segmentation Strategy

There are multiple ways brand can segment customers and it is advised to use mixed strategy by prioritizing demands and needs. The strategy needs to evolve with the passage of time, no strategy is for perpetuity.

1.     McDonalds

This one comes from long ago. McDonalds has been a giant in the food chain industry for decades now. The breakthrough of McDonalds was in the era of 70s. During that phase, McDonalds used quite a simple version of customer segmentation, as it started to grow fabulously.


Following is the main structure of their successful segmentation.

Segmentation on Age-Basis

McDonalds have been known for their differentiated ad campaigns for both children and adults. Kids now McDonalds as a fun place serving delicious burgers with toys, on the other hand, adults see it as an option where they can quickly get a low-cost meal, and coffee.

The other concept McDonalds introduced was of McBreakfast that aimed for the adult working class. The response has been quite encouraging.

Segmentation on Geographical-Basis

People who travel frequently must have witnessed a variation in menu list with respect to different countries and cultures. This is where the firm has scored big numbers as they have been quite smart in tapping different cultural values and offerings. McDonalds creates traditional flavored burgers for the countries they expand.

1.     Pepsi

Operating in more than 200 countries PepsiCo, the parent company of Pepsi has been the leading company in the beverage industry. It targets more than one customer segment at the same time by offering different products.


Segmentation on Health-Basis

For Instance, PepsiCo is positioned as a soft drink that taste good and has a refreshing impact. However, the drink contains a high volume of sugar and is not positioned for customers who are health conscious. To target, the other half of the population, the company offers Diet Pepsi, which is positioned as a soft carbonated drink that contains less sugar content as compared to Pepsi-Cola and other soft drinks. IT projects outsourcing has also helped Pepsi.

1.     Apple

Apple is one of the greatest marketers of all time. The company’s consistent marketing excellence is built on some core disciplines, which others would benefit from. Apple has come a long way up since its inception in 1977.


Segmentation on Income-Basis

The segmentation and positioning of Apple represent the core of its magnificent marketing effort. The company uses a mono-segment type of positioning and makes a posting appeal towards a single customer segment. This high-tech firm place itself as a premium brand offering products having advanced functions and capabilities for additional costs. Therefore; the target audience of Apple comprises of a well-off individual who is willing to pay that premium amount for technologically superior products and services with advanced designs and functions.


Market segmentation groups customers based on their needs and wants. Business can alter their offerings of products or services so that they closely correspond to what a specific group of customers expects. These segmentations help your business considerably satisfy those expectations in a unique and effective manner. There are different companies that use this technique to customize products for their target audience.

Researcher and Content Writer at e-Syndicate Network. A constant learner. Learning and growing every day. Salman has over 5 years of experience in the fields of Digital Marketing, Content Writing, Brand and Business Development.