PRICING STRATEGY OF COCA COLA

The amount of money charged for a product or service, or sum of the values that Consumers exchange for the benefits of having or using the product or services. As price gives us the profit so this P is very important for business price of product should be that which gives maximum benefit to the company and which gives maximum satisfaction to the customer.

Following factors Coca Cola kept in mind while determining the pricing strategy.

➢ Price should be set according to the product demand of public.

➢ Price should be that which gives the company maximum revenue.

➢ Price should not be too low or too high than the price competitor is charging from

    Their customers otherwise nobody will buy your product.

➢ Price must be keeping the view of your target market.

The price of Coca Cola, despite being market leader is the same as that of its competitor

Sometimes, Pepsi places its customers into some psychological pricing strategies by reducing a high priced bottle and consumers think that they save a lot of money from this.

PRICES OF DIFFERENT BOTTLES:

Size of Coca Cola Price of Coca Cola (RS.)

Regular bottle 13

Non returnable or disposable bottle 30

1.5 liter bottle 70

2.25 liter bottle 90

Coca Cola can 40

PRICING STRATEGIES:

Coca Cola has intense competition with Pepsi so its pricing can’t exceed too much nor decrease too much as compared to the price of Pepsi Cola. If price of the Coca Cola exceed too much from the Pepsi then people will shift to the Pepsi Cola and on the other hand if the price of Coca Cola decreases people might get the impression that its quality is also low.


PROMOTIONAL PRICING POLICY

Coca Cola has offered promotional prices very frequently. Especially on some occasion Coca Cola reduces its rates like in Ramadan Coca Cola reduces its rate unto 5 Rupees on 1.5 liter bottle.

MARKET PENETRATION PRICING POLICY

 In an economy like that of Pakistan, consumers tend to switch towards a low priced product. Coca Cola’s objective is to target every consumer of the country so Coca Cola has to set its prices at such a level which no one can offer to its consumers. That is why Coca Cola charges the same prices as are being charged by its competitors. Otherwise, consumers may go for Pepsi Cola in case of availability of Coca Cola at relatively high price.

DISTRIBUTION CHANNEL

Coca Cola Company makes two types of selling

➢ Direct selling

➢ Indirect selling

DIRECT SELLING

In direct selling they supply their products in shops by using their own transports. They have almost 550 vehicles to supply their bottles. In this type of selling company have more profit margin.

INDIRECT SELLING

They have their whole sellers and agencies to cover all area. Because it is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers and Agencies to assure their customers for availability of Coca Cola products.

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