Coca Cola Case Study
Coca-Cola’s
• Major Problems o Major problem now is how Coca Cola is perceived in the market o Communicate to the public real intentions to gain consumers trust o Company now stands to lose customers due to hidden ploy of increasing vending machine prices based on weather. o Company still need achieve goal of maximizing profits through vending machine sales. o Consumers may choose cold water instead of a coke to quench thirst on hot days. o Do coke products actually quench thirst in extreme temperatures due to the sugar and caffeine content?
• Rationales o Consumers could decide to buy another brand of beverage instead of a coke product, e.g., water or nothing at all. o Company can maximize profit by re-evaluating how to increase vending machine sales based on other segment dimensions, e.g., geographic, demographics. o Re-evaluating distribution channels can help maximize profits.
• Action Plan o Communicate better with consumers through survey’s, taste test; find out how get an idea of what’s on the minds of consumers and what they want. o Leave prices fixed o Seasonality pricing to maximize profits; adjust pricing based on demand by seasons.
• Is selling Coke through interactive vending machines a good or bad idea? Why?
• What is Coke? What does Coke mean to the average consumer?
• Where, how, and for whom does this technology create/destroy value? For example, loyal Coke customers, switchers among cola products, loyal Pepsi customers, etc.?
• Are there any pricing related issues that can adversely affect the firm?
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1) Pros for Coca Cola Co.
Technology Availability: Electronic components are becoming more and more versatile and cheaper. All that is required in order to adjust the price with the changes of the weather is a temperature sensor and a computer chip. Therefore, it can reduce the implementation costs.
Increase competitiveness through
• Major Problems o Major problem now is how Coca Cola is perceived in the market o Communicate to the public real intentions to gain consumers trust o Company now stands to lose customers due to hidden ploy of increasing vending machine prices based on weather. o Company still need achieve goal of maximizing profits through vending machine sales. o Consumers may choose cold water instead of a coke to quench thirst on hot days. o Do coke products actually quench thirst in extreme temperatures due to the sugar and caffeine content?
• Rationales o Consumers could decide to buy another brand of beverage instead of a coke product, e.g., water or nothing at all. o Company can maximize profit by re-evaluating how to increase vending machine sales based on other segment dimensions, e.g., geographic, demographics. o Re-evaluating distribution channels can help maximize profits.
• Action Plan o Communicate better with consumers through survey’s, taste test; find out how get an idea of what’s on the minds of consumers and what they want. o Leave prices fixed o Seasonality pricing to maximize profits; adjust pricing based on demand by seasons.
• Is selling Coke through interactive vending machines a good or bad idea? Why?
• What is Coke? What does Coke mean to the average consumer?
• Where, how, and for whom does this technology create/destroy value? For example, loyal Coke customers, switchers among cola products, loyal Pepsi customers, etc.?
• Are there any pricing related issues that can adversely affect the firm?
==================================================================================
1) Pros for Coca Cola Co.
Technology Availability: Electronic components are becoming more and more versatile and cheaper. All that is required in order to adjust the price with the changes of the weather is a temperature sensor and a computer chip. Therefore, it can reduce the implementation costs.
Increase competitiveness through