Wholesale Distribution Stricing Strategy In Coca-Cola
Introduction
Coca-Cola (CC) is one of the world’s largest beverage company that operates in over 200 countries. CC has achieved growth maximization by expanding its operation throughout the world. Swire Coca Cola Beverages Xiamen Limited (CC) has entered the beverage market in Fujian province, China since 1984. CC is observed to be consumed and purchased more commonly than Pepsi Cola in restaurants and convenient stores in the region. This makes one wonder how and why CC is able to dominate the sparkling soft drinks market in Fujian province in China by competing with other rivals.
Thus, this leads to the research question (RQ),
To what extent is the wholesale pricing strategy effective in Coca-Cola, Fujian?
In the RQ, wholesale refers to businesses, such as CC, selling goods in large quantity to wholesalers. As an example, the price of a 500ml bottled Coke that the consumers purchase from the retailer is currently fixed at 3RMB, but the wholesale price constantly changes. This paper mainly focuses on Coke Original as there are a series of beverage brands under the trademark of CC.
Profit maximization and revenue maximization are two of the possible approaches that CC takes when determining the pricing strategy. CC could choose to either earn more profit, or increase market shares and popularity. However, if the firm is able to focus on both objectives, the pricing strategy would be effective.
With regards to the firm objectives, the criteria for effective pricing strategy
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