Coca-Cola’s Pricing & Distribution Strategy

Topic: Marketing
Words: 640 Pages: 2

Pricing Strategy

Pricing for the new product Coca-Cola, a healthy coffee and milk drink, is based on the high quality of the product. Since the product is premium due to the high cost of quality components and composition, its price will be correspondingly high. If an ordinary can of cola costs about $2-3 apiece in various stores, then in the exact dosage, the price of a new drink can reach up to $5-7 for the same volume, which is dictated by the break-even point. Such high pricing is needed to offset the fixed costs of the following activities: shipping high-quality coffee from regions in South America, paying for increased shipping rates due to pandemic restrictions, and producing sustainable packaging for this drink. Initial investments will include market analysis, search for suppliers, purchase of specific equipment, expansion of the production area. Such a high price relative to other drinks for a small volume allows for a high short-term ROI for the project with a high probability of sustainable profit (Haessler, 2020). Long-term profitability will also be achieved through the possible diversification of the range of flavors.

This price will not be highly elastic since Coca-Cola prefers to keep the prices of its products, making them available anywhere in the world. Even though the product is premium, the price remains low relative to the retail sale of coffee drinks to go, which will be close in quality and can generate a large amount of revenue to the company (Luo, 2019). In this regard, even with high demand, the price of products will not increase, nor will it decrease with low demand. The price is already almost at the minimum level to recoup all costs; it is impossible to regulate it even lower. The most successful pricing strategy is just to set the minimum cost of the product to make it available to everyone, which is in line with the vision and goals of the company.

Distributing Strategy

Coca-Cola typically uses wholesale distribution channels to various stores and supermarkets, but the company’s representatives can also work locally with retail customers. Initial marketing costs involve introducing products in retail supermarkets and stores in advanced economies, followed by the first iteration of demand assessment. The products can then be promoted as in restaurants where healthy eating is one of the essential features, as well as among retail customers buying company drinks at minor points of sale or the appearance of a drink in vending machines. Each industry needs to be assessed separately, choosing the most profitable channel in the second iteration of the demand assessment. Finally, as a goal, the company should arrive at a multi-channel approach to distributing the beverage worldwide using the most effective strategies identified during the qualitative and quantitative assessments of the first two iterations of distribution. As a result, retailers will be the leading wholesale distribution channel for products, generating the bulk of revenue.

Marketing will emphasize a healthy and healthy coffee and milk drink with unique production technology and quality ingredients. This plan is aimed at the target audience, which will consume the drink by buying it in retail chains: supermarkets shops. Consequently, the primary marketing campaign is aimed at wholesale buyers of products. In order to conquer the retail market, it is necessary to produce a more image marketing plan of action to pinpoint cooperation with organizations to increase the company’s reputation. Coca-Cola is often attacked about the harmfulness of its drinks, which is why such a plan can give the company an advantage by eliminating this threat or taking it away from attention (Chua et al., 2020). Finally, a decision must be made on a charitable event with a specific batch of drinks donated to organizations in need against the backdrop of cash assistance, so the product has associations with the social responsibility of The Coca-Cola Company.


Chua, J. Y., Kee, D. M. H., Alhamlan, H. A., Lim, P. Y., Lim, Q. Y., Lim, X. Y., & Singh, N. (2020). Challenges and solutions: A case study of Coca-Cola company. Journal of the Community Development in Asia (JCDA), 3(2), 43-54. Web.

Haessler, P. (2020). Strategic decisions between short-term profit and sustainability. Administrative Sciences, 10(3), 63. Web.

Luo, L. (2019). Coca-Cola. In Partnering with Chinese Firms (pp. 259-279). Routledge. Web.

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