Coca Cola Pricing Strategies

1031 WordsApr 13, 20135 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…show more content…
c. Geographical Pricing. A company also must decide how to price its products for customers located in different parts of the United States or the world. The price of Coca cola in different countries are not the same. It depends on the cost the company has to pay (cost-based value) and the economic conditions, competitive situations, laws and regulations, and the devel- opment of the wholesaling and retailing system. Consumer perceptions and preferences also may vary from country to country, calling for different prices. Or the company may have different marketing objectives in various world markets, which require changes in pricing strategy. 2-Liter Coca-Cola Sample of U.S. Prices: City | Price | Portland, Ore. | $1.89 | Little Rock, Ark. | $1.48 | Los Angeles, Calif. | $1.00 | Sample of World Prices: Country/City | Price | USA | | South Africa | $0.78 | Hong Kong | $1.30 | London | $2.07 | Spain | $2.19 | Paris | $2.99 | Australia | $3.32 | Germany | $4.06 | Vietnam |

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