This means that they have more pricing power compared to perfect market. Their pricing is highly influenced by competition, as both Coke and Pepsi are substitutes for each other and therefore, if Coca-Cola increases its price, many of its consumers will switch to Pepsi . In US coca cola pricing strategy differs from its rival in the sense that it pricing is based on the value it creates for different situations. This is why Coca cola 's price per liter can vary depending on factors like packaging, location etc. Pepsi takes this value based pricing strategy a bit further with their model.
Introduction: Strategy is an integral part in any organizational in nowadays or even in the long past time. However, strategy plays a very important role in today’s competitive business environment. From other corner, strategy is a set of decisions that have been selected and agreed upon in order to achieve goals or find solution. However, strategy can be changed at any point of time if it does not meet the goals that it has been set for. In this respect, I am going to highlight all the applications of the strategy in the selected organisation and its competitors as well.
, we 'll find that the difference is minor, which means that coca-cola can beat it. “Statista.com, 2015” *Theoretical Frame Work: -If..then Statements: If competitors are few, then opportunity to increase the market share is higher. If market strategy is better, then the market share will be better. If the political forces decrease, then the market share will better. If the co. 's strategy is changed negatively, then it will decrease market share.
History Coca- Cola history began in 1886 when an Atlanta Pharmacist, Dr. John S. Pemberton discovered the tempting soft drink that could be profitable at soda fountains. He successfully created a flavored syrup that mix well with carbonated water and proven to have pleasant result. Dr. Pemberton’s partner and bookkeeper, Frank M. Robinson, is credited with naming the beverage “Coca Cola” as well as designing the trademarked, distinct script, still used today. The first serving of Coca-Cola were sold for 5 cents per glass. Sales averaged for the first year were nine glass per day at Atlanta.
The costs begin to lower due to economies of scale and the general market is aware and starts to accept the product. Profits grow and the initial costs of producing and promoting the product are covered. The competition may start to increase, with for example Coca Cola also producing a new flavour to compete with the Pepsi one. The product is therefore further improved, and the price is maintained as there is an increase in demand. In addition, the promotion is aimed at a wider audience as people already have an idea about the product through the opinion leaders.
HISTORY & BACKGROUND OF COCA COLA The Coca Cola company is known as one of the world’s largest carbonated soft drinks company that began before World War II. It is an American-based company found in 1886 by an Atlanta pharmacist. Dr. John S. Pemberton created the formula of French Wine Coca, which is known as Coca Cola now and introduced the carbonated soft drink as a patent medicine at first. The beverage became more noticeable when Frank M. Robison, Dr. Pemberton’s partner changed the product name and created the famous script logo, which he believed that will attract customer in advertising.The marketing phenomenon grew even bigger when the small company was bought over by Asa Griggs Candler prior of the founder’s death in 1888. Candler 's decision was what made the Coca Cola Company so successful today due to his interest and aggressiveness in marketing this product.
The company is strongly connected to fashion and youth trends. This has made a big competitor of Red Bull towards companies such as PepsiCo and Coca Cola. The competition is so strong that Red Bull is forced to spend huge amounts of money on advertising campaigns. 13.3 Opportunities 13.3.1 Diversification of its distribution network Red Bell is recently using trade in order to increase sales. Vending machines work effectively as advertising tools and sales tools, due to the constant exposure to consumers.
1.1 The Coca-Cola Company It was 1886, and in New York Harbor, workers were constructing the Statue of Liberty. Eight hundred miles away, another great American symbol was about to be unveiled. Like many people who change history, John Pemberton, an Atlanta pharmacist, was inspired by simple curiosity. One afternoon, he stirred up a fragrant, caramel-colored liquid and, when it was done, he carried it a few doors down to Jacobs ' Pharmacy. Here, the mixture was combined with carbonated water and sampled by customers who all agreed.
1.2. Product Differentiation This refers to differentiation that aspires to make a product more attractive by contrasting its unique qualities with other competing products (Investopedia, 2015:1), as in the case of Coca-Cola, other soft drink brands. Successfully adopting this strategy would have a company gaining a competitive advantage, as the customer would then view the product as unique or superior. This is what coca cola has managed to do, and has managed to do it on a scale that is globally unique, and globally recognized. Much proof would indicate that Coca-Cola has definitely chosen a differentiation strategy since its early days.
The successful strategy of IMC implemented by Coca Cola would stand as a benchmark for other companies in the market. Coca Cola’s strategical marketing goals like higher sales ,higher profits, brand visibility, positioning in the global market, indicates the accomplishments the brand has garnered due to an effective