The amount of money charged for a product or service, or sumof the values that Consumers exchange for the benefits of having or using theproduct or services. As price gives us the profit so this P is very importantfor business price of product should be that which gives maximum benefit to thecompany and which gives maximum satisfaction to the customer.
Following factorsCoca Cola kept in mind while determining the pricing strategy.
➢ Price should be set according to the product demand ofpublic.
➢ Price should be that which gives the company maximumrevenue.
➢ Price should not be too low or too high than the pricecompetitor is charging from
Their customersotherwise 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 thesame as that of its competitor
Sometimes, Pepsi places its customers into somepsychological pricing strategies by reducing a high priced bottle and consumersthink 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 pricingcan’t exceed too much nor decrease too much as compared to the price of PepsiCola. If price of the Coca Cola exceed too much from the Pepsi then people willshift to the Pepsi Cola and on the other hand if the price of Coca Coladecreases 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 CocaCola reduces its rate unto 5 Rupees on 1.5 liter bottle.
MARKET PENETRATION PRICING POLICY
In an economy likethat of Pakistan,consumers tend to switch towards a low priced product. Coca Cola’s objective isto target every consumer of the country so Coca Cola has to set its prices atsuch a level which no one can offer to its consumers. That is why Coca Colacharges the same prices as are being charged by its competitors. Otherwise,consumers may go for Pepsi Cola in case of availability of Coca Cola atrelatively 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 byusing their own transports. They have almost 550 vehicles to supply theirbottles. In this type of selling company have more profit margin.
INDIRECT SELLING
They have their whole sellers and agencies to cover allarea. Because it is very difficult for them to cover all area of Pakistan bytheir own so they have so many whole sellers and Agencies to assure theircustomers for availability of Coca Cola products.
