The long term pricing strategy of the company is value oriented. It maintains the affordable price of its product to become popular in the middle class market and to face its strong competitor Pepsi. This pricing strategy give importance to risk involved in any beverage company for adopting some strategies related to price. The pricing strategy affecting the demand of Coca Cola’s product in international market is influenced by the factors like elastic and inelastic demand. In the elastic demand the product price was sensitive which increased the sales volume in a significant level with the reduction of price.
In inelastic demand the product does not have any decrease, increase correspondingly with the rise or fall in price (Gelder and Woodcock, 2003). Place Coca Cola’s product is available all over the world. The company follows the distribution pattern of FMCG. Its distribution network is very effective that it has almost destroyed middle and small level players in the beverage market. For example in India, Coca Cola has made extensive distribution even also in the rural market which eroded the market of local soft drinks.
It adopted many measures for entering into various foreign markets like franchising, licensing and direct exporting. To overseas companies and distributers, Coca Cola directly exports its products. It also does licensing the bottlers internationally and supply them the syrup which is required to manufacture the product. The total distribution process of the company in international market is done in a very strategic way. It sells it product in many different ways (Cheverton, 2005) Promotion The company develops many promotional and advertising strategies in its international market for increasing its demand all over the world which is associated with the behaviour and life style of its targeted audience.
It individualized its ad for particular message or festival according to different country. The company also used CSR in its marketing activity for gaining emotional benefit in the mind of the consumer. Coca Cola gives price discount and allows the retailers and distributors for pushing its more products in the international market. It applies Pull strategies in campaigns and advertisements and push strategies in promotion. It invests a huge amount of money every year for ad and promotion of its product around the world for maintaining its leadership in the market.
Social media, online and magazine ads are also been used by the company in promoting its products.
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