Coca Cola Pricing Strategies

1042 words 5 pages
0. Preface
1. New-Product Pricing Strategies
2. Product Mix Pricing Strategies
- In a relationship with cost and customers’ demand
- In a relationship with competitors
3. Price Adjustment Strategies
a. Discount and Allowance Pricing
b. Psychological Pricing
c. Geographical Pricing

When marketers talk about what they do as part of their responsibilities for marketing products, the tasks associated with setting price are often not at the top of the list. Marketers are much more likely to discuss their activities related to promotion, product development, market research and other tasks that are viewed as the more interesting and exciting parts of the job.
Yet pricing decisions can have important consequences for the marketing organization
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In order to grab market share, Pepsi generally start to drop prices, and shortly after, Coca Cola decide to decrease theirs slightly but not for all products. For example, in Indi or Pakistan, Coca Cola is focused on reducing prices of their 200ml container (cans) .

3. Price Adjustment Strategies
Setting the base price for a product is only the start. The company must then adjust the price to account for customer and situational differences. It takes time to find the ideal pricing level for the product that you are providing. Companies usually adjust their basic prices to account for various customer differences and changing situations.
Coca Cola is not the only exception. The price adjustment strategies they use for their products are: Discount and Allowance Pricing; Psychological Pricing and Geographical Pricing.
a. Discount and Allowance Pricing
Coca Cola use the Discount Pricing, which means a straight reduction in price on purchases during a stated period of time or of larger quantities. To be more specific, they apply the quantity discount to retailers, which is a price reduction to buyers who buy large volumes.

b. Psychological Pricing
Price says something about the product. In using psychological pricing, sellers consider the psychology of prices, not simply the economics. A small difference in price can signal product differences. For example, the price of Coca Cola products usually ends at $0.09 (~0.99 but not $1) to appeal their customers.

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