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Thursday, June 17, 2010

Pricing Strategy Coke

Pricing strategy Explanation of pricing strategy, ”Meet-the-competition pricing”. The Coca-Cola products pricing are set around the same level as its competitors.
Most of the Coca-Cola products use this method of pricing. For example, for a pack of 250ml of Coca-Cola it is priced at Rs.12 instead of Rs.10.00.This pricing strategy makes consumers perceive the products to be affordable.
Like any company who has successfully endured a century of existence, Coca Cola has had to remain tremendously fluent with their pricing strategy. They have had the privilege of a worthy 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."
The relationship between Coca Cola & Pepsi is a healthy one that each corporation has learned to appreciate.

Throughout the years Coca Cola has made many pricing decisions but one might say that their ultimate goal has always been to maximize shareholder value. In order to grab market share most of time Pepsi began to drop prices (even with summer approaching). Shortly thereafter, Coca Cola decided to drop their prices slightly, but focused on the reduced price point of their 200mL container.
Coca Cola planned to use the lower price point to penetrate new cities that were especially price sensitive. The carbonated soft drink market in Pakistan is nearly 57% of the total beverage market there.

Coca Cola’s first used low-price strategy in the early 1990s. After annihilating the low price store brands, Coke chose to reposition itself as a "Premium" brand and then raise prices. They are sticking with this strategy as it is working. They are positioning themselves as premium product for having fun in life.

Position support Pricing
Coca Cola has been doing continuous focus on its price related positioned. With the help of experience of over the years coca cola has finally emerged with the best marketing strategy of its time and successfully maintained its position as an affordable enjoyment of life. 


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