Coca Cola Case Study
COURSE CODE
MKT 330
COURSE TITLE
Pricing
Undergraduate Program
Coca Cola CASE STUDY
Submitted by:
Cecilia BUISSON
Winter 2014
INSTRUCTOR
Momtchil Kovatchev
COCA COLA CASE STUDY
1.What are the pricing strategies adopted by Coca Cola brand in the three key markets of India, China and USA? (15 points)
2.Should they have done anything differently? In which market and why? (5 points)
3.Was the price decrease the right move in India? Why? What were the consequences for both companies? (5 points)
1)
Coca Cola is one of the three largest carbonated beverage company in the world, before PepsiCo and Cadbury Schweppes. It greatly owes its success to its capability to adapt to completely different markets and cultures. It is one of the most experienced Company at tackling emerging markets as it derives more than 80 percent of its sales from outside the USA according to Ahmet C. Bozer, president of the Coca Cola group in Africa and Eurasia. Indeed, Coca Cola’s ongoing war with PepsiCo in the USA has reached a dead end due to the market stagnation and to the rise of alternative drinks such as juices and sports drinks. Although it is not far from being over as the new battle is taking place from across the globe. Underdeveloped nations such as in the Middle East, Asia or Africa are fast growers and the more these economies mature the more Coca Cola is spreading widely. However, the company has a varied market penetration, as the consumption is different from a country to another and different pricing strategies in the USA, China and India. We will focus on these three countries in order to analyze the overall pricing strategy of Coca Cola and its implementation in China and India.
In 2001, the Indian market was composed by more than 70% of rural population. This dominant part of the population had a much lower purchasing power and lower salaries compared to urban consumers. The gap in India between the rural and the urban consumers was massive 10 years ago.
MKT 330
COURSE TITLE
Pricing
Undergraduate Program
Coca Cola CASE STUDY
Submitted by:
Cecilia BUISSON
Winter 2014
INSTRUCTOR
Momtchil Kovatchev
COCA COLA CASE STUDY
1.What are the pricing strategies adopted by Coca Cola brand in the three key markets of India, China and USA? (15 points)
2.Should they have done anything differently? In which market and why? (5 points)
3.Was the price decrease the right move in India? Why? What were the consequences for both companies? (5 points)
1)
Coca Cola is one of the three largest carbonated beverage company in the world, before PepsiCo and Cadbury Schweppes. It greatly owes its success to its capability to adapt to completely different markets and cultures. It is one of the most experienced Company at tackling emerging markets as it derives more than 80 percent of its sales from outside the USA according to Ahmet C. Bozer, president of the Coca Cola group in Africa and Eurasia. Indeed, Coca Cola’s ongoing war with PepsiCo in the USA has reached a dead end due to the market stagnation and to the rise of alternative drinks such as juices and sports drinks. Although it is not far from being over as the new battle is taking place from across the globe. Underdeveloped nations such as in the Middle East, Asia or Africa are fast growers and the more these economies mature the more Coca Cola is spreading widely. However, the company has a varied market penetration, as the consumption is different from a country to another and different pricing strategies in the USA, China and India. We will focus on these three countries in order to analyze the overall pricing strategy of Coca Cola and its implementation in China and India.
In 2001, the Indian market was composed by more than 70% of rural population. This dominant part of the population had a much lower purchasing power and lower salaries compared to urban consumers. The gap in India between the rural and the urban consumers was massive 10 years ago.
References: Chan, Sharon, and Jingyan Liu. FUTURE COLA IN CHINA (n.d.): n. pag. Web Pinak Paul. "Marketing Strategies of Coca Cola (1)." Marketing Strategies of Coca Cola (1). N.p., n.d. Web. 22 Oct. 2014. "What Is a Cost-Plus Pricing Strategy?" Yahoo Small Business Advisor. N.p., n.d. Web. 22 Oct. 2014.