This update summarises key aspects of Coca-Cola's petition and the key takeaways. Petition The principal dispute involves transfer pricing between Coca-Cola and seven related foreign licensees collectively, the 'licensees'. The licensees manufactured concentrate for sale to bottlers outside the United States. The IRS claims that royalties paid by the licensees to Coca-Cola for the use of trademarks and formula rights were less than arm's length.
As price gives us the profit so this P is very important for business price of product should be that which gives maximum benefit to the company and which gives maximum satisfaction to the customer.
Following factors Coca Cola kept in mind while determining the pricing strategy. The price of Coca Cola, despite being market leader is the same as that of its competitor Sometimes, Pepsi places its customers into some psychological pricing strategies by reducing a high priced bottle and consumers think that they save a lot of money from this.
Regular bottle 13 Non returnable or disposable bottle 30 1. If price of the Coca Cola exceed too much from the Pepsi then people will shift to the Pepsi Cola and on the other hand if the price of Coca Cola decreases people might get the impression that its quality is also low.
Especially on some occasion Coca Cola reduces its rates like in Ramadan Coca Cola reduces its rate unto 5 Rupees on 1. That is why Coca Cola charges the same prices as are being charged by its competitors. Otherwise, consumers may go for Pepsi Cola in case of availability of Coca Cola at relatively high price.
They have almost vehicles to supply their bottles. In this type of selling company have more profit margin. Because it is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers and Agencies to assure their customers for availability of Coca Cola products.
· The Coca Cola company has the privilege of being a worth competitor that constantly drives it to be as a smarter, more rapidly and better company in adopting the pricing strategies.
If they are to be more successful then they need to be initiativeblog.com://initiativeblog.com Read the Coca-Cola İçecek (CCI) customer case study, powered by the AWS Cloud. AWS provides cloud computing services to hundreds of thousands of customers. EXECUTIVE SUMMARYCoca Cola recently introduced a ‘one brand’ approach strategy to try and unite four distinct brands, Iconic and effective initiativeblog.com A sales performance review of new soft drinks products introduced by Coca cola in Mount Kenya region, established that only 15% have succeeded, 55% have performed poorly, % have failed completely and another % have exhibited an abnormally high artificial initiativeblog.com://initiativeblog.com · The marketing mix is a standard strategic tool used to formulate a plan for product development and promotions.
Examining the mix for a successful company like Coca-Cola can help a business leader understand the dynamics and synergy involved between the four core elements -- product, place, price and initiativeblog.com://initiativeblog.com Coca-Cola Co (KO) Stock Analysis, 10 Years Financial Analysis, Interactive Charts, Stock Valuations, Value Investing.