Analyzing The Market Segmentation and Consumer Behavior of Generation Z Toward Ready-to-Drink Tea Using K-Means Clustering Method

Abstract

PT ABC President Indonesia (ABCPI) is a food and beverage company with their most popular product of RTD green tea called Nu Green Tea. As trends and preferences are continuously shifting over time, market segmentation is needed for the company, especially to be updated with the current situation in the market. The ready-to-drink (RTD) tea market has also become one of the fastest-growing segments of the global beverage industry. Hence, the project was done to discover the newest market segmentation of Generation Z and their consumer behavior, including food choice, food-related lifestyle, and brand perception using principal component analysis and K-means clustering methods. From a total of 475 Gen Z respondents, 4 clusters have been identified with each characteristic and behavior. Loyalist consumers value taste and exhibit strong brand loyalty, whereas trialist consumers are driven by trends and are always passionate to try new things. Mindful consumers prioritize health and are willing to pay more for nutritious and eco-friendly options, while impulsive consumers favor convenience, affordability, and frequent consumption. Tailoring products and marketing efforts to these segments with particular needs can enhance the business, including brand engagement, customer satisfaction, and market presence.