Coca-Cola New Vending Machine: Pricing To Capture Value or Not? Coca-Cola‚ the renowned beverage is a flagship product of The Coca-Cola Company. The company is not only a manufacturer but also a distributor and a marketer of many other non-alcoholic beverage concentrates and syrups. Coca-Cola was invented by pharmacist John Stith Pemberton in 1886. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated it in The Coca-Cola Company in 1892. Besides its namesake Coca-Cola
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Coca Cola a Vending Machine Case Study Problem Statement: Coca Cola Co.‚ the world’s largest beverage company is facing a public relation nightmare which can ultimately put their brand image at stake. Their Chairman and CEO‚ Ivan Ivester‚ abruptly announced the introduction of interactive vending technology which will lower the price of coke during off-peak buying time and increase the price during very hot weather conditions‚ Ivester virtually confirmed the vending machines will be
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531 Case #1 1/31/08 Coca-Cola’s New Vending Machine Statement of Problem Coca Cola‚ the world’s largest beverage company‚ has been under a tremendous amount of media scrutiny lately. Word got out that Coke is testing a new vending machine technology that changes price based on weather conditions. It charges a higher price during warmer temperatures and a lower price during colder times. Coke wants to increase its vending machine business with higher margins‚ but isn’t sure this new temperature
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Coca Cola Company would like to introduce the market with the vending machine technology‚ a new technology with changed price according to weather‚ which has been developed and tested in the lab internally. The thought is to be based on the idea of automatically adjusting the price according to the demand increase as the weather temperature increases. The purpose of this strategy is to continue increasing the vending machine profit‚ which had been already main the profit resource for the company
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1) Pros for Coca Cola Co. Technology Availability: Electronic components are becoming more and more versatile and cheaper. All that is required in order to adjust the price with the changes of the weather is a temperature sensor and a computer chip. Therefore‚ it can reduce the implementation costs. Increase competitiveness through price discrimination: Price discrimination is used in order to increase the economic efficiency. In principle‚ the temperature sensitive vending machine is no different
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New Vending Machine Pricing to Capture Value‚ or Not? Case Facts Coca Cola planned on introducing new vending machines that are able to automatically change prices according to ambient temperature. How this works: the price of Coke goes up in hot weather where cold drinks are regarded more valuable to satisfy thirst than in cold days. Coca Cola tried to maximize profit from these smart vending machines‚ after facing price war in supermarkets. This practice is called price
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Coca-Cola’s • Major Problems o Major problem now is how Coca Cola is perceived in the market o Communicate to the public real intentions to gain consumers trust o Company now stands to lose customers due to hidden ploy of increasing vending machine prices based on weather. o Company still need achieve goal of maximizing profits through vending machine sales. o Consumers may choose cold water instead of a coke to quench thirst on hot days. o Do coke products actually quench thirst in extreme
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Statement of the Problem: Coca Cola‚ the world’s largest beverage company‚ has been under a tremendous amount of media scrutiny lately. Word got out that Coke is testing a new vending machine technology that changes price based on weather conditions. The core problem which coke is facing here is public relations disaster. They have put their brand image at stake. The way in which the Chairman and CEO of Coke M. Douglas Ivester disclosed about the new vending machines was inappropriate. Price
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Discussion Questions: 1- Discuss the attitude and related beliefs towards Coca-Cola of intensely brand-loyal consumers (perhaps like those who were upset by the new Coke in 1985). How might their attitude and beliefs differ from those of less involved‚ less loyal consumers? What marketing implications would these differences have? Answer: For those types of consumers they have a strong positive attitude toward the Coca-Cola brand. And this can surpass what the company can imagine to even reach the
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................................................................................. 5 3.2. Planning.....................................................................................................................5 a. Buying a Vending Machine b. Arranging Capital c.Developing Marketing Strategy * Market Segmentation * 4 P’s of Marketing Mix d.Importance of Maintainance & Insurance e.Execution f.Monitor g.Evaluation
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