Price is the amount of money paid by the customer or user to use the product or service. The price is the most flexible phenomenon can be changed based on the customer demand and product supply. The price be depends on several internal and external factors like product quality, competition, customer needs and product availability. The price considerations and approaches can be discussed broadly by taking the example of Coca Cola Company.  Coca Cola is a world leading Beverages Company with more than 3800 beverages choices in more than 200 countries.

The price range of the Coca Cola products mainly determined by the market and geographic segment. Each sub brand of Coca Cola has separate strategy. The price fixation is mainly based on the competitors; the direct competitor for coke is the Pepsi.


  • DEMAND FROM THE PUBLIC: The product price should be set based on the demand from the public. The price of the product can be increased or decreased based on the demand from the public.
  • COMPANY REVENUE: The price should be decided in such a way that the company should receive maximum revenue. Sometimes the price may be increased or decreased based on different marketing needs, but the change must leads to give the maximum revenue for the company.
  • PRICE COMPETITOR: The price of the product should not be very high or very low from the price competitor. The price should be in such a way that the product should attract the maximum number of customers. If the price is too high than the other marketing competitors then the product will not have maximum number of customers irrespective of the quality.
  • TARGET MARKET: The price should be affordable by your target market. If the product is more used by the middle class people then the price should not too high, so that the product can attract maximum number of target population.


Coco Cola has huge competition from Pepsi. The price cannot be increased too much, which can lead to customer shifting from Coca cola to Pepsi products, the price cannot be decreased as well because of huge decrease in company revenue and people might get the impression of low quality product.

To overcome these problems Coca Cola is following different pricing strategies like:

  • MARKET PENETRATION PRICING STRATEGY:The Coca Cola main objective is that the product should be consumed by every person in the targeted market. Some counties public prefer low cost products. So the marketing price of the product is mainly based on the counties and targeted people. So the Coca Cola charges same prices as its competitors so that the customers will not look for the alternative. It uses low pricing policies to penetrate into market which are extremely cost sensitive.

Coca Cola follows to types distributions

  1. Direct
  2. Indirect

Direct: In this the company directly supplies the products to the selling shops. In this type the shops will have more profit margin than the company. At retailers regular on pack promotions are available to increase the market.

Indirect: In this the company has the agencies to supply the products to make sure the availability of the product to the customers.


In which coke initially fix low prices to penetrate into the market, once the product is familiar to the target market then the price can be modified.


Coca Cola offers different prices for different packs to make available to all the people. For example it offers 6 pack cans, 2 pack cans, liter bottles at different prices.


The cost of the same bottle is different in each county; this is to meet the different economic conditions.

Coca cola also follows some alternative pricing policies like

  • Fixing the price by having small margin
  • To achieve target profit
  • What can customer pay?
  • Comparison with others.


To meet the competitors pricing the Coca cola fixing the process around the same range as its competitors price. The coca cola is well fluent and consistent in its pricing strategy. Is has a dangerous competitors like Pepsi which making the Coca Cola to follow more specific and smarter pricing strategies. The organization is following many pricing strategies to achieve the maximum company revenue as a goal.



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