Accounting - The Coca-Cola Company

Running head: ACCOUNTING
Accounting
Name of the Student:
Name of the University:
Author’s Note:

1ACCOUNTING
Table of Contents
Solution to exercise 8-27............................................................................................................2
Solution to exercise 17-26..........................................................................................................4
References and bibliography......................................................................................................5

2ACCOUNTING
Solution to exercise 8-27
The Coca-Cola Company is a multinational company based on America
manufacturing and marketing non-alcoholic beverages and syrup. The company is
headquartered at Atlanta, Georgia and incorporated at Delaware, United States. It operates in
a franchises distribution system since 1889 after its production of the beverage drink Coca-
Cola in the year 1886. It has been dominating the market of soft drinks throughout the 20th
century and it has been viewed as the “best worldwide brand” by Interbrand’s Investigation in
2015. During the initial days, while deciding the price of Coke the firm used a cost-based
estimating framework. After composing the first product they decided the expenses and
accordingly set the cost of the coke and persuaded the customers. It is that time from which
the company started using market-entrance strategy for evaluating the cost. Presently, Coca-
Cola is facing many rivals in the industry like Pepsi and to fight with their rivals their
essential methodology is market price and they set their prices accordingly neither too high
nor too low (Coca-colacompany.com, 2020).
The company is using alternate pricing strategies for Coke over the years and the strategies
are (Arab, 2018)-
 Psychological Pricing Strategy- During the year 2009, this pricing strategy has been
utilized by them for their original product, coke.
 Promotional Pricing Strategy- They also uses the strategy of promotional pricing as
often as possible.
 Segmented Pricing Strategy- Based on different products and packages, the Coca-
Cola Company also uses segmented pricing strategy.
 Discriminatory Pricing- When the product is sold through different channels they
follow discriminatory pricing strategies.