Pricing Strategy for Effervescent Coca Cola Drops

This presentation discusses the pricing strategy for Effervescent Coca Cola drops, including pricing objectives, target audience, and pricing structure. It also covers marketing communications and how the strategy enhances positioning strategy.

Presentation of a new product

Table of contents
Introduction
Price
Pricing objectives of Effervescent Coca Cola drop
Target audience see value in the proposed structure
Price for the product
Marketing Communications
Promotion plans
Provide customers an exclusive preview
Social Media contest
Email marketing
In-store promotions
Conduct an event
Share on social media
The strategy fits the target market
Strategy enhances positioning strategy
Conclusion
References

Introduction
The paper will discuss the pricing strategy introduced by Effervescent
Coca Cola drops. It will provide the pricing objectives of setting the price
for the product. It will also present the proposed pricing structure of the
product. The paper will focus on the promotional plan that would
enhance the positioning strategy within the market.

Price
Pricing objectives of Effervescent Coca Cola drop
 Price must be set as per the demand of the customer
 Price must be set that provides maximum revenue to the company
 Price must not be too high or too low as compared to the competitors
 Price must be set by focusing upon the target market
 The prices are set to enhance long-run profit
 To meet the competitive pricing within the marketplace
 To increase the value of the shareholders
 To grasp market share
 To enter new markets that are sensitive towards the price

Target audience see value in the proposed
structure
 The new set price of Coca Cola possess minimum price than
traditional retailers
 The company offers the right price for the right product
 The product charges a premium price for the stable and simple
commodity
 Coca Cola would use large bottles and sell it at lower prices
 The proposed structure will see the 1.75-liter bottle would increase to
2 liter
 The price of a 2-liter bottle will also decrease
 The company set the price that is comparatively lower than the price
range of the competitors

Price for the product
The calculation of the selling point are as follow:
Gross profit (%)= 65%
Product cost (ex VAT)= £0.70
Product size= 1L bottle
Server Size= 1L bottle
No of Serving= 1
Selling price (including VAT @ 20%)= £2.40
The price of the Effervescent Coca Cola drops set as per the size of the
bottle. The prices are as follows:
 Regular bottle- £1.2
 Disposable or non-returnable bottle- £1.59
 1-liter bottle- £2.40
 2-liter bottle- $4.4

Marketing Communications
Promotion plans
Provide customers an exclusive preview
 Offer customers a high-quality product (Kienzler and Kowalkowski, 2017)
 It includes special invitation, online preview, and pre-launch party
 It makes the customers feel satisfied and good
Social Media contest
 The company will use tools such as sweepstakes, giveaways, and contests for standard quality
marketers
 It is a fun and easy way of connecting with the consumers
 The company will conduct a simple Facebook contest
 The company will also use Instagram to present an overview of the product (Åberg, Fälting and
Forssell, 2016)
 The giveaway would be marketed through email and social media channels

Coca Cola communication strategy

Continued…
Email marketing
 The company would make use of email marketing through the newsletter for
advertisement
 The newsletter is the best way to promote the product (McKay, Laverty and Majeed,
2017)
 It would help the company to share the news regarding the product easily
 It offers an exclusive promotion or discount that speaks about the product
In-store promotions
 It provides a reason for the customers to buy the product
 It offers promotional materials and signs based on the product (Bogomolova et al.,
2015)
 The company could make use of exclusive in-store discounts to purchase the product

Continued…
Conduct an event
 It is a great way to bring people to the location of the event
 The events could be simple instead of super organized and fancy
 The company associates with other business to promote its product
 Coca Cola would make use of outdoor open house and sidewalk sale
Share on social media
 Through this process, the company will share and announce the new
product
 It includes photos of the product, customer reviews and customer
exclusive events (Martins, Rindova and Greenbaum, 2015)
 The photos would be shared on Instagram and Facebook

The strategy fits the target
market
 It will fit the target market as it provides with an objective of the
company
 It hopes to enter into the new market and attract customers
 The strategy would help gain acceptance from the customers
 The low pricing strategy would gain a competitive advantage within
the marketplace
 It will fulfill the needs of the customers
 The pricing strategy of Coca Cola offers flexible price of the product
 It also focuses upon customer goodwill and ease of the administration

Strategy enhances positioning
strategy
 The pricing strategy includes the concept of marketing mix (Fergie, Leifeld,
Hawkins and Hilton, 2018)
 It enhances positioning strategy by offering low price product
 It introduces new positioning within the market
 It integrates marketing communication strategies beneficial for the company
 The strategy is more efficient in reaching to the target audience
 It enhances positioning strategy by involving marketing activities and
messages
 The company had priced its product accordingly to enhance market positioning
 It would help in maximizing marketing opportunities for the company
 It would reduce the operational and administrative cost of selling the product

Conclusion
The paper demonstrated an understanding of the pricing strategy of the
new product Effervescent Coca Cola drops within the market. It provided
with a pricing objective of Coca Cola along with its new pricing structure
for the product. It has been observed that customers will be highly
satisfied with the proposed structure of the product offered by the
company. The company offers lower prices for the product. Based on
marketing communication the paper provided promotional plans that
would help the company to promote the product effectively. It can be
seen that the pricing strategy set by the company would enhance its
positioning strategy.

References
 Åberg, M., Fälting, L. and Forssell, A., 2016. Is Swedish district heating operating on an integrated
market?–Differences in pricing, price convergence, and marketing strategy between public and
private district heating companies. Energy Policy, 90, pp.222-232.
 Bogomolova, S., Dunn, S., Trinh, G., Taylor, J. and Volpe, R.J., 2015. Price promotion landscape in the
US and UK: Depicting retail practice to inform future research agenda. Journal of Retailing and
Consumer Services, 25, pp.1-11.
 Fergie, G., Leifeld, P., Hawkins, B. and Hilton, S., 2018. Mapping discourse coalitions in the Minimum
Unit Pricing for alcohol debate: A discourse network analysis of UK newspaper coverage. Addiction.
 Kienzler, M. and Kowalkowski, C., 2017. Pricing strategy: A review of 22 years of marketing
research. Journal of Business Research, 78, pp.101-110.
 Martins, L.L., Rindova, V.P. and Greenbaum, B.E., 2015. Unlocking the hidden value of concepts: a
cognitive approach to business model innovation. Strategic Entrepreneurship Journal, 9(1), pp.99-
117.
 McKay, A.J., Laverty, A.A. and Majeed, A., 2017. The divergence of minimum unit pricing policy
across the UK: opportunities for public health policy development. Journal of the Royal Society of
Medicine, 110(9), pp.358-364.