April 29, 2013
Coca-Cola is known as the global leader in the beverage industry in more than 200 countries across the world. Coke was invented at the end of the 19th century, by John Pemberton, which originally intended it to be a patent medicine. Asa Griggs Candler bought out Coca-Cola and with his advertising strategies led Coke to its dominance of the world soft-drink market.
Team B will discuss the utility of Coke to the immediate consumer and how the consumer needs are met. The number and closeness of substitute and complementary products and their impact on pricing decisions and the price elastic of Coke will also be discussed. Team B will discuss the effect on revenue when there are price changes and issues that affect consumer demand and price, and strategies to enhance revenue.
Consumer goods and Consumer needs
Coca-Cola provides caffeine induced sweetened, carbonated, or non-carbonated beverages to quench the thirst of many consumers. The Coca-Cola Company provides concentrate to distributors, who add the contractual ingredients. These distributors sell to grocery stores, restaurants, and vendors for profit. The Coca-Cola Company offers a wide variety of drinks throughout the world. Those drinks include Vitamin water, soda, and energy drinks, and juices.
Substitute and Complimentary Products
There are over a hundred selections for consumers to choose. Coca-Cola’s competitors include Pepsi, Dr. Pepper, and Faygo brands. The products are so similar in taste that if one is not available, the average consumer will not hesitate to buy the other. Because of the closeness in taste and competition, the price is usually on average the same. The price would also be impacted by the market it is sold in. If the other brands are not available, Coca-Cola would have the monopoly and can charge a higher price unless there...