Campbell's Soup Company found that its canned nacho cheese sauce, which could be heated and poured directly onto nacho chips, was too hot (spicy) for Americans in the East and not hot enough for those in the West and Southwest. Today, Campbell's plants in Texas and California produce a hotter nacho cheese sauce than what is produced in the other plants. Campbell's is using segmentation.

Geographical

Explanation:

In marketing it is important to know, to whom the company wants to sell its product or service. It is important as it enables companies to make strategies and decision targeted towards that segment. The phenomenon is called segmentation.  

segmentation can be done on many criteria for instance gender, race, age, place of living, culture, ethnicity.

In this case Campbell soup company is producing different soup for defend geographical region as they have different taste. Hence geographical segmentation is used here.