Coca Cola Vending Machine Analysis

802 Words May 19th, 2012 4 Pages
Coca Cola Company would like to introduce the market with the vending machine technology, a new technology with changed price according to weather, which has been developed and tested in the lab internally. The thought is to be based on the idea of automatically adjusting the price according to the demand increase as the weather temperature increases. The purpose of this strategy is to continue increasing the vending machine profit, which had been already main the profit resource for the company. It is an ideal thought of relating priced directly with the weather temperature but impractical. If it is applied into the market, there are below negative results:

 It will have weaker competition while another vending machine is nearby with
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 Price fluctuation will confuse the consumers a lot and could not have consumers accept the idea. Finally it might impair Coca brand.
Consumers would prefer a fair/constant price or a comparable fair/constant price from a company. Consumers would feel discrimination of buying a product with different prices in a short period in a temperature fluctuation season. For the people often do travel in a short time, they will obviously view the price change in different regions because the temperature changes in different regions. They will feel unfair to find other regions hold lower or higher price than their home town. Meanwhile, the changeable price will confuse the consumer to understand the reason especially the competitor holds the constant price. Consumer would not understand why the price changes so often while the competitor keeps the same price. Distrust might rise up and it will give the good reason that consumers chase for competitors product because of the trust is impaired. It takes a long time to educate and coach consumers to understand the reason of price changes. Even if after education and coach, most of the consumers would not accept the idea because the competitor keeps the constant price. Therefore, from consumer point, we could not see the good reasons of support from consumers. Nevertheless, it has the risk of impairing Coca reputation and influence.

 Potentially fluctuate price in the vending machine will impact the retail channel, both

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