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Coca Cola Pricing Strategies

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0. Preface
1. New-Product Pricing Strategies
2. Product Mix Pricing Strategies
- In a relationship with cost and customers’ demand
- In a relationship with competitors
3. Price Adjustment Strategies
a. Discount and Allowance Pricing
b. Psychological Pricing
c. Geographical Pricing

When marketers talk about what they do as part of their responsibilities for marketing products, the tasks associated with setting price are often not at the top of the list. Marketers are much more likely to discuss their activities related to promotion, product development, market research and other tasks that are viewed as the more interesting and exciting parts of the job.
Yet pricing decisions can have important consequences for the marketing …show more content…

2. Product Mix Pricing Strategies
The strategy for setting a product’s price often has to be changed when the product is part of a product mix. In this case, the firm looks for a set of prices that maximizes its profits on the total product mix. Pricing is difficult because the various products have related demand and costs and face different degrees of competition.
Coca Cola choose the Product Line Pricing, which sets the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors’ prices.
- Not only producing Coke, Coca Cola own more than 500 brands in over 200 countries or territories in the beverage markets. They consider the customers’ needs and sell products for each group of people in each period of time. For instance, Coca Cola introduced Tab (1963) drinks to meet the needs of customers who are in the diet and then developed it into a new successful brand – Diet Coke (1982). Another example is that during the 1990s, the company responded to the growing consumer interest in healthy beverages by introducing several new non-carbonated beverage brands. These included Minute Maid Juices to Go, Powerade sports beverage, flavored tea Nestea (in a joint venture with Nestle), Fruitopia fruit drink and Dasani water, among others.
The revenue comes not only in one or two specific products, but from all products

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