Pricing strategy of coca cola in different markets.

PRICING STRATEGY OF COCACOLA IN VARIOUS MARKETS.

Things that we are going to be discussed

History of coca cola.Market condition and pricing strategy in

INDIA.Market condition and pricing strategy in

CHINAMarket condition and pricing strategy in

US.

History of coca cola Invented in May of 1886 by Dr. John Styth Pemberton. First glass sold for 5 cents at Jacob’s Pharmacy in Atlanta May 29, 1886- first newspaper advertisement pronounced it “Delicious and Refreshing. April 1888, Dr. Pemberton sold off his interest in Coca-Cola and passed away two days after. April 1888, Asa Candler began buying up Coca-Cola shares By 1892, Asa Candler was sole proprietor of Coca-Cola for a total investment of $2,300 New global advertisement “Welcome to the World”. Coca-Cola’s products are somewhat sensitive to economic slumps Loyal patrons, however, view Coca-Cola as an inexpensive pleasure Disposable income is generally rising around the world

Coca-Cola’s business in foreign currencies result in currency exposure of the company.

Strong U.S. dollar means weaker currencies elsewhere

Coca-Cola’s aluminium cans are recyclable.Coca-Cola’s plastic containers are also

recyclable.Coca-Cola’s cardboard containers are made out

of recycled materials.Pepsi is Coca-Cola’s main rival.Market Cap = Shares Outstanding X Share

Price = 187.57 B

Pricing strategy of coca cola in several markets.

Here, we are taking three markets:

1)Indian market2)China market and3)USA market.

Condition of Indian market Indian market has lot of rural market having lot of problem in

distribution and affordability. Due to which, distribution of product is very hard and difficult, The distribution cost is also very high which will make the product

costly for rural consumers. People living in rural areas have low or irregular income, so they are

price sensitive, As lifestyle is different customization of the product that suits as per

the need of Indian consumers is requisite. Indian rural market habit tends to be ,” earn today ,spend today”, So it was hard for marketers to price high for their product.

Pricing strategy of coca cola in INDIA Cost-plus(penetration) pricing strategy.

1) Indian market is untapped market, due to: Low incomes, geographically dispersed Lower purchasing power IN most of the most people INDIA.

2) Strategy followed: Low price strategy. Packaging in smaller bottle which will result in reduction of cost and

price too. Here they usually follow penetration pricing and they believe that

consumption will increase with increases in per capita income.

Condition of market in china When coca cola entered Chinese market they struggled to make

profit for 10 years because China was in time of planned economy.

Income of Chinese people was very low which made product too expensive.

But when the economy increased tremendously lot of local brads with advantage of low cost product emerged.

But coca cola kept same price for their products to increase its brand position higher then local brands.

Thus, with the steadily increase of standard of living make it now easy to buy for a normal-stage income Chinese.

Pricing strategy of coca cola in Chinese market Value based pricing strategy. now., people are having higher incomes and coca cola is

focusing on buyers perception, They have to convince them that product’s value justifies

price. So loyalty is created by high level of

marketing/advertising campaigns. Local companies like Wahaha focus on low priced product

for consumers in china. So they usually focus on value based pricing.

Condition of US market Coca cola was invented in USA and it is the home

market for them also. The income level and lifestyle is quite high in US. And

it is very competitive market in whole world. Pepsi is the major competitor of coca cola. A quote from Pepsi Co CEO "The more successful they

are, the sharper we have to be. If the Coca Cola Company didn't exist, we'd pray for someone to invent them.“

Pricing strategy of coca cola in US

CONCLUSION Coca cola is the company having high brand value and equity. It uses different pricing strategy in different markets.

INDIA COST BASED PRICING

CHINA VALUE BASED PRICING

USA VALUE AND COMPETITION BASED

PREPARED BY:MANISH KHARELJAMES P MOKTANTH. KRISHNA CHANDRA SUBHRADIPTA MAJUMDAR