dimanche 18 novembre 2012

Coca Cola pricing strategy

”Meet-the-competition pricing”: the Coca-Cola products pricing are set around the same level as its competitors, Coca Cola has to be perceived different but still affordable.
Like any company who has successfully been existing for more than a century, Coca Cola has had to remain tremendously fluent and consistent with their pricing strategy. They have had worthy and “dangerous” competitor constantly driving them to be smarter, faster, and better. A quote from Pepsi Co's CEO "The more successful they are, the sharper we have to be. If the Coca Cola Company didn't exist, we'd pray for someone to invent them."

Throughout the years Coca Cola has made many pricing decisions but there is no doubt that their ultimate goal is to maximize shareholder value. In order to grab market share, Pepsi generally start to drop prices, and shortly after, Coca Cola decide to decrease theirs slightly but not for all products. For example, in Indi or Pakistan, Coca Cola is focused on reducing prices of their 200ml container (cans) .
Coca Cola uses lower price point to penetrate new markets that are especially sensitive to price. Coca Cola does that to face the competition and to raise brand awareness among the population. Once it is strongly implemented, it reposition itself as “premium” compared to numerous competitors (ex: Pepsi), the brand have an image of bringing intangible benefit in lifestyle, group affiliation, moment of joy & happiness… but the marketing strategy still focus on an affordable enjoyment of life.
At retailers’, regular on-pack promotions are available in order to meet the company’s objectives and also to attract consumers to buy more. 

Sources:
http://fr.scribd.com/doc/22027744/Coca-Cola-Branding-Strategy
http://mba.tuck.dartmouth.edu/pdf/2004-1-0085.pdf
http://fr.scribd.com/doc/46403814/Coca-Cola-CBBE-Model

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