The parent product of the company is cocacola drink, which is a flagship product. It also has got sugar by which continuous drinking of coca cola may cause health problems. One of the biggest competitors that coca cola has in the beverage market is pepsi. For example, an incidence approach to pricing was used more often, whereby both cocacola and the bottler shared in the profit made by the combined system, rather than a fixed price per unit. Operation strategy of coca cola 2990 words bartleby. The marketing strategy of coca cola is a mix of three important elements affordable prices, worldwide accessibility and great consumer connection. The strategy of the coca cola company according to its website is to, be the worlds most recognized family brands, not just of soft drinks, but of juice drinks, sports drinks, water and milk, to maintain a trusted local presence in every community served, to increase annual. According to coca cola s own figures, last years consumption for brazil was. Because of this, coca cola has come up with long term objectives. It has consistently wielded its pricing strategy as an invitation to sample, aiming to turn trial into addiction. Pricing strategies and tactics the pricing strategy a business will use will have to. Discussion and analysis of the marketing strategy of coke. The company has had a mix of pricing, advertising, sales promotion programs, product innovation, increased efficiency in production techniques, the introduction of new packaging, new vending and.
Coca cola started with a pricing strategy based on the basis of competition. Coca cola company strategy of sales was price penetration where low price are charged and the company attends large market as possible. Coca cola has intense competition with pepsi so its pricing cant exceed too much nor decrease too much as compared to the price of pepsi cola. Once coca cola have carefully analysed the internal and external business. To judge the effectiveness of the strategy that coca cola employed in brazil, it is relevant to see the current consumption of the drinks under the coca cola umbrella. Coca cola is the worlds largest beverages company which. If price of the coca cola exceed too much from the pepsi then people will shift to the pepsi cola and on the other hand if the price of coca cola decreases people might get the. Coca cola follows a 2nd degree price discrimination strategy in its marketing mix. Being addicted to coca cola also is a health problem, because drinking of coca cola daily has an effect on your body after few years. Pdf as a chandler founded the coca cola company back in 1886 and it is headquarter in atlanta.
The price of coca cola is quite inelastic to demand as there is a large degree of consumer sovereignty towards the product. Free the cocacola company and market pricing strategies essay. Moreover, due to the decreasing demand for soda products, price competition between coca cola and pepsi has gotten even intense. Evaluating the growth and competitive strategy of coca cola. Coca cola company report contains more detailed analysis of coca cola marketing strategy covering issues of coca cola s public relations, events and experiences and direct selling.
The importance of pricing the price a business charges for its product or service is one of the most important business decision that. Unlike price skimming where higher price are charged. Cocacola marketing strategy is one of the most complete and diverse strategies today. Coca cola s traditional marketing strategies essay 1461 words 6 pages. Pricing strategy today, it became quite popular for startups, for a day or two, to offer their service or a product for free, and then increase their prices. The brand is familiar to people all around the world, and is available in many. 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. It contributes to the highest sales of soft drinks globally. Coca cola is one of the most leading company in soft drink beverage industry. Coca cola has had to remain tremendously fluent and consistent with their pricing strategy.
The marketing mix is a standard strategic tool used to formulate a plan for product development and promotions. Coca cola follows competitive pricing for their products. Market segmentation coca cola, which is one of the largest multinational enterprises in the world, has been successfully applying traditional and digital marketing strategies to promote their products. The product is controlled by the coca cola company, a. Today coca cola sells products in over 300 countries worldwide, and has over 3,000 different beverages. An example for such successful implementation of marketing strategy is coca cola. Charging premium prices initially to earn maximum revenue. Project report marketing management product strategy of. Their pricing strategy is based on the competitors pricing, pepsi is the direct competitor to coke. An evaluation of marketing strategies undertaken by coca. The worldwide popularity of coca cola was a result of simple yet groundbreaking marketing strategies like consistency. Revenue growth would also be driven by inorganic growth strategies of coca cola, with the company announcing several key acquisitions in 2018, including costa limited completed in q1 2019 and a. Analysis of brandlevel strategic pricing between cocacola company and pepsico.
In this report, an inner view of coca cola company has been revealed. This report shows the main strategy aspects related with the coca cola competitive advantages. Due to the availability of wide range products, the pricing is done according to the market and geographic segment. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. Pricing strategies by cocacola in india slideshare. Examining the mix for a successful company like coca cola can help a business leader understand the dynamics and synergy involved between the four core elements product, place, price and promotion. Each subbrand of coca cola has different pricing strategy. The drink did not have bubbles at that time and started selling. It has reliably used its valuing technique as an encouragement to test, expecting to transform trial into habit.
Coke has brought in a revolution especially in indian markets with the rs. Pdf strategic marketing plan for cocacola 2016 researchgate. Project report marketing management product strategy of coca cola. The amount of money charged for a product or service, or sum of the values that consumers exchange for.
Understanding cocacolas business model and performance. The history of coca cola began over a century ago since 1886. The coca cola brand is globally valued and recognized. Coca cola is known as soft drink of the world bell, 2004. This coca cola swot analysis reveals how the company controlling one of the most iconic brands of all time used its competitive advantages to become the worlds second largest beverage manufacturer. Pdf as a chandler founded the coca cola company back in 1886 and it is headquarter in atlanta, georgia, united states. Discussion and analysis of the marketing strategy of coke zero in. Product is the first and most important element of the marketing mix. The company has to be quite careful with the pricing of their products, if coke prices its products too high as compared to pepsi in a particular segment, then the. It was invest by dr john pemberton, who was a pharmacist in atlanta. To fully understand how they act, lets discuss the components of their marketing strategy. Poduct strategy calls for making co ordinate decisions on product mixes of coca cola. Below is the pricing strategy in coca cola marketing strategy. The coca cola company has continued to be one of the leading firms that provide refreshments to customers through creating value to consumers, making a difference, and inspiring moments of optimism and happiness.
Pdf coco cola marketing strategy and market plan ekin duran. Discussion and analysis of the marketing strategy of coke zero in the us market robert sarich, riasat zaman, and chinmoy misra coke zero 375ml cans as sold in vending machines were launched in the us market in 2005, as a sugarfree version of coca cola that maintains the same taste. The price increases were in the marketplace more fully by the end of the summer and coming into the fourth quarter, said james robert b. Statement of the problem in current business activities, the success or failure of any business organization hinge on how best. Cocacola working its way through price increases 2019. It is currently involved in retailing, marketing nonalcoholic beverage syrups, manufacturing and other stuff. Coca cola founded in 1886 by dr jhon pemberton worlds leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups. Evaluation of cocacolas current product and pricing policy.
Coca cola is a multinational corporation having its route in almost every part of the world. The coca cola company tccc has multiple business units with a wide range of products that span the whole world. Nowadays more expenses are spent on advertising by soft drink companies rather than on manufacturing. Marketing mix of coca cola 4ps of marketing mix of coca cola.
The marketing plan of powerade structure are executive summary current market situation, swot analysis objective and issues marketing strategy, action programmes budgets and controls incorporating to developed marketing plan for coca cola. Pricing strategy used by cocacola there are three different pricing strategies which a company can primarily follow. More than 70 percent of they income comes from outside the u. The beverage market is considered to be an oligopoly in which there are few sellers and many buyers. Product strategy was strongly applied such as the modification of its product as well as after sales services which all help to facilitate. Cocacola, brand image, non alcoholic beverage, price value, preference, consumers. International pricing coke also uses the international pricing strategy. Quincey, chief executive officer of coca cola, in a feb. However, there are many competitors in the market so a substantial increase or decrease in price will have an effect, but not a huge one. Coca cola marketing mix 4ps strategy mba skoolstudy. Essays related to the coca cola company and market pricing strategies. Over the past decade, coca cola has been experiencing a decline in sales due to increasing health and obesity concerns.
Coca cola has effects on the teeth which is an issue for health care. In the sense they charge different prices for products in different segments. The prices lower as the size of the package grows bigger. Cocacola has defended its strategy in the us amid questions from investors about whether it was acting as a spoiler in the soft drinks industry by. This document describes the the pricing journey of cocacola india right. Coca cola swot analysis 6 key strengths in 2020 sm insight. Various macroeconomic factors such as inflation and labor price would impact operations of coca cola.
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