is not so successful as Coca-Cola but it still be well known with its major product, Pepsi. One of PepsiCo.’s competitive advantage is its variety product line. In 2001, PepsiCo. stated in 38 percent more revenue than Coca-Cola despite it was stated $16 billion sales in soft drinks. This is because besides of compete with Coca-Cola in soft drink market, Pepsi also introduce some snacks and breakfast, such as Quaker Oat, Lay and others (Business Insider, 2012).
Coca-Cola is the most valuable ($ 77,839 billion) brands in the world. Coca-Cola is currently in 200 countries around the world. Chances are, you go, you will find Coca-exist in any country on the market. This huge Coca-Cola's global presence also caused a huge brand-building. Coca-Cola's worth around 79.2 billion dollars.
This has affected Coca-Cola directly in terms of soda sales which were the major source of revenue for Coca-Cola. The Coca-Cola revenue was at 75%, with the overall soda sales in the US per capita having dropped to 25% since 1998 as at June 2016. In the past 15 years, non-sugary beverages, such as, single-serve bottled-water sale by 76% while ready to drink tea grew by 91%. This demonstrates clearly why there is drastic reduction in the consumption of sugary beverages. Coca cola also announced a 7% increase in sales of noncarbonated beverages.
The equation for that shows the relationship between the quantity demanded and price is as given below: QD = f (P) QD : Quantity demanded P : Price of the commodity. The demand for coca cola as any normal good is downward slopping from left to right which shows the inverse relationship between the price and quantity demanded. The lower the price of Coca
Thus, the purchase of Coca Cola products would move products towards consumers while moving money and information towards the retailers such as Walmart. After that retailers would place in order to distributors to replenish the inventory/stock in which the flow of information moves back up the supply chain. Once the information flow reaches distributors it then transmits that information and money to the manufacturers such as those who provide and produce the product components which afterwards it ships down to the wholesalers. Lastly, the flow of information reaches the suppliers in exchange for material flow into their production processes. Thus, when I purchase a can/bottle of Coca Cola at a convenience store, my purchase represents the end of a supply chain’s delivery of an item and the beginning of information regarding the purchase flowing in the opposite direction.
It can be confirmed from the graph above, to show when the price of the product Coca-Cola was previously at P, the quantity before was at Q. later as the price rises to P1, the quantity demanded reduces to Q1. This shows the insightful of the indirectly proportional relation between price and demand of the product. Therefore, it can be incidental that Coca-Cola is an elastic product because the elasticity of demand results is more than 1. The key determinants of demand elasticity for Coca-Cola Company are the availability of substitutes. This is high in Coca-Cola, the pass of time, the compassion of the middle-income group consumers to price amendments and the discernment of the income of the population being spent on consumable goods.
• Anticipative marketer:- The company didn’t stopped after launching several products still marketer realized that health conscious people need diet beverage so they launched but they further anticipated future demand that people can further demand flavors in Diet drinks. • Creative marketer:- Coke Cola company is a market driving firm. Product especially like Diet coke and it’s superb and mind blowing flavors are evidence for its
b) how to produce(technology) ? c) The price it sells at ? The firms cost are key to its production and pricing decision. • Revenue, Cost, Profit: Assuming the Coca-Cola’s primary goal is to maximise the profit. Total Revenue: The total amount received by a firm on the sale of its output.