Coca-Cola uses different pricing strategies in different markets based on local conditions. In India, it uses cost-plus pricing and packages products in smaller, more affordable bottles due to low incomes and price sensitivity. In China, it initially held prices steady to build its brand against local competitors, but now focuses on value-based pricing as incomes have risen. In the competitive US market, it employs value- and competition-based pricing against rival Pepsi.

1. Pricing strategy of
coca cola in different
markets.
.

2. Things that we are going to be
discussed
History of coca cola.
Market condition and pricing strategy in
INDIA.
Market condition and pricing strategy in
CHINA
Market condition and pricing strategy in US.

3. History of coca cola
 Invented in May of 1886 by Dr. John Styth Pemberton.
 First glass sold for 5 cents at Jacob’s Pharmacy in Atlanta
 May 29, 1886- first newspaper advertisement pronounced it “Delicious and Refreshing.
 April 1888, Dr. Pemberton sold off his interest in Coca-Cola and passed away two days after.
 April 1888, Asa Candler began buying up Coca-Cola shares
 By 1892, Asa Candler was sole proprietor of Coca-Cola for a total investment of $2,300
 New global advertisement “Welcome to the World”.
 Coca-Cola’s products are somewhat sensitive to economic slumps
 Loyal patrons, however, view Coca-Cola as an inexpensive pleasure
 Disposable income is generally rising around the world

4.  Coca-Cola’s business in foreign currencies result in
currency exposure of the company.
 Strong U.S. dollar means weaker currencies elsewhere
 Coca-Cola’s aluminium cans are recyclable.
 Coca-Cola’s plastic containers are also recyclable.
 Coca-Cola’s cardboard containers are made out of
recycled materials.
 Pepsi is Coca-Cola’s main rival.
 Market Cap = Shares Outstanding X Share Price =
187.57 B

5. Pricing strategy of coca cola in several
markets.
Here, we are taking three markets:
1) Indian market
2) China market and
3) USA market.

6. Condition of Indian market
 Indian market has lot of rural market having lot of problem in distribution
and affordability.
 Due to which, distribution of product is very hard and difficult,
 The distribution cost is also very high which will make the product costly for
rural consumers.
 People living in rural areas have low or irregular income, so they are price
sensitive,
 As lifestyle is different customization of the product that suits as per the need
of Indian consumers is requisite.
 Indian rural market habit tends to be ,” earn today ,spend today”,
 So it was hard for marketers to price high for their product.

7. Pricing strategy of coca cola in INDIA
 Cost-plus(penetration) pricing strategy.
1) Indian market is untapped market, due to:
 Low incomes, geographically dispersed
 Lower purchasing power IN most of the most people INDIA.
2) Strategy followed:
 Low price strategy.
 Packaging in smaller bottle which will result in reduction of cost and price too.
 Here they usually follow penetration pricing and they believe that consumption will increase
with increases in per capita income.

8. Condition of market in china
 When coca cola entered Chinese market they struggled to make
profit for 10 years because China was in time of planned economy.
 Income of Chinese people was very low which made product too
expensive.
 But when the economy increased tremendously lot of local brads
with advantage of low cost product emerged.
 But coca cola kept same price for their products to increase its brand
position higher then local brands.
 Thus, with the steadily increase of standard of living make it now easy
to buy for a normal-stage income Chinese.

9. Pricing strategy of coca cola in Chinese
market
 Value based pricing strategy.
 now., people are having higher incomes and coca cola is focusing
on buyers perception,
 They have to convince them that product’s value justifies price.
 So loyalty is created by high level of marketing/advertising
campaigns.
 Local companies like Wahaha focus on low priced product for
consumers in china.
 So they usually focus on value based pricing.

10. Condition of US market
 Coca cola was invented in USA and it is the home market for
them also.
 The income level and lifestyle is quite high in US. And it is very
competitive market in whole world.
 Pepsi is the major competitor of coca cola.
 A quote from Pepsi Co CEO "The more successful they are, the
sharper we have to be. If the Coca Cola Company didn't exist,
we'd pray for someone to invent them.“

11. Pricing strategy of coca cola in US

12. CONCLUSION
 Coca cola is the company having high brand value and equity.
 It uses different pricing strategy in different markets.
INDIA COST BASED PRICING
CHINA VALUE BASED PRICING
USA VALUE AND COMPETITION BASED

13. PREPARED BY:
MANISH KHAREL
JAMES P MOKTAN
TH. KRISHNA CHANDRA
SUBHRADIPTA MAJUMDAR