The Pricing Strategies Of Coca Cola Essay
Coke holds the largest beverage market share in the world (about 40%). Coca Cola’ promotion expenses accounted for more than $3 billion in 2012 and increased firm’s sales and brand recognition Coca Cola serves more than 200 countries and more than 1.7 billion servings a day making them the most extensive beverage delivery channel.
Coke is progressively focusing on CSR programs, such as recycling/packaging, energy conservation/climate change, active healthy living, water stewardship and many others, which boosts company’ social image and result in reasonable gain over competitors.
Customer commitment is number #1. The coca cola entity enjoys having one of the most loyal consumer groups.
Bargaining power over suppliers. The Coca Cola Company is the largest beverage producer in the world and exerts significant power over its suppliers to receive the lowest price available from them. (forbes.com)
How can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-carbonated soft drinks (e.g., Snapple)?
1. Per investigations the soft drink industry does not entertain some threat from disruptive forces in technology.
2. For some decades the Soft Drink Industry has remained stable…