Pricingand Competitive Advantage in Pricing
Pricingand Competitive Advantage in Pricing
TheCoca-Cola Company is a multinational beverage corporation that aimsat refreshing its consumers in various ways. The company is growingrapidly and incurring profits since it utilizes its marketingstrategies well. The company sells its products to many countriesmaking allowing it to penetrate the global market efficiently.Therefore, this essay examines the pricing strategies the Coca-ColaCompany uses to enjoy huge profits and draw most customers’attention.
Itis essential for a majority of companies to have an appropriate plan.This will help the company accomplish the goals and objectives set bythe directors. There are certain key elements of the marketing planthat are crucial for a company. The concepts that must be adopted bythe company include product, price, place, and promotion.
Thefocus of the Coca-Cola Company is on the pricing strategies it uses.The Company executes certain strategies in order to boost the salesof their product, maximize profit and maintain the status quo(Robert, 2008). These pricing strategies include penetration pricingwhere the firm lowers the prices of their product to increase itssales and market share. The firm then increases its prices after ithas captured the market share. Another strategy is the skimmingpricing. The company sets the original price as high, and then lowersthe price slowly so that they can widen its product presence in themarket.
Competitionpricing allows the company to compare its prices to those of thecompetitors. The company responds by either setting lower or higherprice from its competitors. Therefore, the Company has competitiveadvantage prior to its pricing. The company charges a small,affordable price for its product in the global market. Hence, itbecomes economical and affordable to most of its customers. Mostcustomers are attracted to its large scale production. The Coca-Colaproduct has recorded more sales than other products in the samemarket environment (Robert, 2008).
Conclusion
Coca-ColaCompany enjoys a successful competitive advantage for its pricingstrategies. It has adopted such strategies for the purpose ofpenetrating into the market.
References
Robert, F. (2008). Coca Cola globalisation: Following soft drinks from New York to New Guinea. New York: Palgrave Macmillan.