Compare and contrast the CocaColas pricing strategy with tha

Compare and contrast the Coca-Cola\'s pricing strategy with that of Pepsi. How are they the same? How are they different?

Solution

Earlier coke used cost based pricing method. With this method cocacola initially tried to erode maximum profit from the market by reaching to generate maximum production that can qachieve equilibrium between marginal cost of production. but with increase number of competitors and with intesifying rivelry with Pepsico. , cocacola has adopted new pricing strategy known as Competitive pricing strategy. Adopting this strategy enable cocacola to scale up production level for similar competitors products and also offer products at lower price to specific customers.

Pepsi, due to competition with cocacola and influenced by its working partner wal-mart has adopted cost focus approach where it tries to keep maintaining low price of the products offered to various customer segments of pepsi.