Pricing Strategy: Size Mountain Dew Sprite 3G

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Pricing Strategy Size Mountain Dew Sprite 3G Sprite 250mL 22 15 22 500mL 45 40 40 1.5 litter 85 70 85 Can 35 - 35 Gross margin or profitability The cost incurred in 250ml was 6 Rs and company includes distribution charges 2 Rs in one bottle. The total cost incurred from manufacturing to delivering product to customer is 8 Rs and sold to retailer at 12 Rs. The profit earned by the company is 4 Rs behind per bottle. The retailer sold to its customer is for Rs 15. Price sensitive The customers of Sprite 3G are targeting less price sensitive and also it is a low price product so price do not effect so much to demand. It is in a segment where price is inelastic and change in price doesn’t lead to a big change in demand. The target market of this…show more content…
It can be purchase in store (pan shop, general store) of cities, supermarkets etc. But still it was not available at every store in Pakistan. The distribution network was not very much strong of this soft drink. Coca Cola Company has their own distribution vehicles to transfer their goods. But vehicle only cover the limited areas. We have taken the interview from a retail store owner. He Said ‘Coke vehicles has not covered the different areas, what they do, they have made agencies where they deliver to us. Due this situation agency will only buy those products which we see the more demand by the…show more content…
The message in advertisement on TV, Radio is just like vague and unbelievable which cannot be happened in reality. That was the major mistake by 3G team in the strategy building approach. Product look plays a vital role for the successful of product. The packaging of sprite 3G is same as the sprite there was no significant changes. The bottler color of sprite 3G was blue that was the only differentiation from the sprite. One of the reasons behind of failure of 3G was delay in distribution, coca cola fail to cover most of the retail store in Pakistan, people responded towards to trying of sprite 3G but due to availability to product leads to switch towards the mountain Dew. The taste of the 3G is just like a medicine therefore people stop drinking the 3G.The coca cola tried to launched again sprite 3G in the market but it could not capture the attention of people due to his negative image which been created before. The pricing strategy had not much affect the demand of sprite 3G because its price was comparatively same as other soft

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