MARKETING MIX 2
Marketing Mix
The current business landscape is characterized by increased technological enhancements
and is very competitive with diverse market demands. This aspect has forced many organizations
to reorganize their operations in order to attract and retain their customers. One of the most
critical components that has had a significant influence on purchasing decisions is price. Besides,
the evolution of the internet and easy accessibility of information have contributed significantly
to price sensitivity since they offer clients alternative choices that assist in their buying decisions
(Hinterhuber, 2017). The increased competition has forced businesses to establish effective
pricing strategies that match the product or service with the consumer’s value perception.
Renowned beverage brand Coca Cola has for many years thrived on an effective pricing
strategy that has made it witness tremendous growth and profitability globally. There are several
factors that the company considers in determining its pricing strategy. Firstly, it ensures that the
prices set reflect the public demand for the product (Johansson, Hallberg, Hinterhuber, Zbaracki,
& Liozu, 2011). Secondly, Coca Cola ensures that the costs for its products are neither too high
nor too low compared to the rates charged by its competitors for similar commodities in the
market (The Drum, 2015). Additionally, the organization regularly embraces promotional pricing
policy during holidays and special occasions. For instance, Coca Cola usually reduces its prices
during Ramadhan festivals to attract members of the Muslim fraternity and also as a solidarity
initiative during the fasting period. In so doing, the company realizes significant amount of sales
and helps to maintain its customers’ loyalty.
Furthermore, Coca Cola uses two distinct modes of distribution to deliver its products to
the customers. Firstly, the company applies direct selling, where it offers the products directly to
