Statement of the Problem: Coca Cola‚ the world’s largest beverage company‚ has been under a tremendous amount of media scrutiny lately. Word got out that Coke is testing a new vending machine technology that changes price based on weather conditions. The core problem which coke is facing here is public relations disaster. They have put their brand image at stake. The way in which the Chairman and CEO of Coke M. Douglas Ivester disclosed about the new vending machines was inappropriate. Price
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Coca-Cola New Vending Machine: Pricing To Capture Value or Not? Coca-Cola‚ the renowned beverage is a flagship product of The Coca-Cola Company. The company is not only a manufacturer but also a distributor and a marketer of many other non-alcoholic beverage concentrates and syrups. Coca-Cola was invented by pharmacist John Stith Pemberton in 1886. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated it in The Coca-Cola Company in 1892. Besides its namesake Coca-Cola
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531 Case #1 1/31/08 Coca-Cola’s New Vending Machine Statement of Problem Coca Cola‚ the world’s largest beverage company‚ has been under a tremendous amount of media scrutiny lately. Word got out that Coke is testing a new vending machine technology that changes price based on weather conditions. It charges a higher price during warmer temperatures and a lower price during colder times. Coke wants to increase its vending machine business with higher margins‚ but isn’t sure this new temperature
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Coca Cola a Vending Machine Case Study Problem Statement: Coca Cola Co.‚ the world’s largest beverage company is facing a public relation nightmare which can ultimately put their brand image at stake. Their Chairman and CEO‚ Ivan Ivester‚ abruptly announced the introduction of interactive vending technology which will lower the price of coke during off-peak buying time and increase the price during very hot weather conditions‚ Ivester virtually confirmed the vending machines will be
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Coca Cola Company would like to introduce the market with the vending machine technology‚ a new technology with changed price according to weather‚ which has been developed and tested in the lab internally. The thought is to be based on the idea of automatically adjusting the price according to the demand increase as the weather temperature increases. The purpose of this strategy is to continue increasing the vending machine profit‚ which had been already main the profit resource for the company
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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 price discrimination: Price discrimination is used in order to increase the economic efficiency. In principle‚ the temperature sensitive vending machine is no different
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0. Preface 1. New-Product Pricing Strategies 2. Product Mix Pricing Strategies - In a relationship with cost and customers’ demand - In a relationship with competitors 3. Price Adjustment Strategies a. Discount and Allowance Pricing b. Psychological Pricing c. Geographical Pricing When marketers talk about what they do as part of their responsibilities for marketing products‚ the tasks associated with setting price are often not at the top of the list. Marketers are much more likely to
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................................................................................. 5 3.2. Planning.....................................................................................................................5 a. Buying a Vending Machine b. Arranging Capital c.Developing Marketing Strategy * Market Segmentation * 4 P’s of Marketing Mix d.Importance of Maintainance & Insurance e.Execution f.Monitor g.Evaluation
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New Vending Machine Pricing to Capture Value‚ or Not? Case Facts Coca Cola planned on introducing new vending machines that are able to automatically change prices according to ambient temperature. How this works: the price of Coke goes up in hot weather where cold drinks are regarded more valuable to satisfy thirst than in cold days. Coca Cola tried to maximize profit from these smart vending machines‚ after facing price war in supermarkets. This practice is called price
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he Coca-Cola Company has been very consistent with their pricing strategy over the many years they have been in business. Because they have a strong competitor‚ they have to keep their prices in line to compete. The ultimate goal of the company is to maximize shareholder value. The will often reduce the price of their products when entering new markets. They do this to raise brand awareness and face the competition. Once they are established‚ they move the prices back up to position themselves as
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