Pricing Strategy of Coca-Cola Research Paper Example | Topics and Well Written Essays - 500 words - 1

Pricing Strategy of Coca-Cola - inquiry Paper ExampleIn this pricing strategy, prices are kept low in order to while away more into the target market (Armstrong, Marketing). As a part of this strategy, prices of most of the products that are currently in the market get out be lowered by 1-2 units. Furthermore, the quantity of the content fanny also be increased keeping the price range unchanged. In case of the brands that are about to be introduced, prices will be maintained at the lowest possible range so that competitive advantage bottom of the inning be gained. Prices of those brands that have sufficient market look at in most of the major markets can be brought down by 5-10%. However, the price of the sports drinks brand which has been struggling to gain enough popularity would not be make lowered more than 2-3%. Penetration pricing strategy is likely to be more effective in the developing countries like India where people are significantly concerned about the prices of the product. In developed countries, occupy cut in price may not work and hence in these markets, more features can be added in terms of content and packaging without changing the price. In some cases, prices can be reduced slightly.The main reason behind choosing penetration pricing strategy is increasing the sales by penetrating deeper into the markets. In most of developing countries, the volume of the target market is increasing significantly. Almost common a new market is getting created. In order to, gain enough market share in these markets it is very important to keep the price at a lower level for the initial period. The sports drinks sector in the emerging markets is becoming bigger. However, it is dominated by the competitors brand. As a result, bringing down the price without the changing the quality is likely to be an appropriate strategy for Coca-Cola. The event is quite different in the developed markets where consumers have become more health conscious.