Coke Vending Machine Issue

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  • Published : September 8, 2011
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Major Problems
oMajor problem now is how Coca Cola is perceived in the market oCommunicate to the public real intentions to gain consumers trust oCompany 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. oConsumers may choose cold water instead of a coke to quench thirst on hot days. oDo coke products actually quench thirst in extreme temperatures due to the sugar and caffeine content? •Rationales

oConsumers could decide to buy another brand of beverage instead of a coke product, e.g., water or nothing at all. oCompany can maximize profit by re-evaluating how to increase vending machine sales based on other segment dimensions, e.g., geographic, demographics. oRe-evaluating distribution channels can help maximize profits. •Action Plan

oCommunicate 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. oLeave prices fixed
oSeasonality 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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