Analysis of Coca-Cola's Fresca: Demand, Price Elasticity, and Strategy

This report provides a detailed analysis of Coca-Cola's Fresca, examining its demand, market equilibrium, and price elasticity. The introduction outlines the role of management economics and presents an overview of Coca-Cola and its Fresca product, including its target market and marketing strategies. The report then delves into the factors influencing demand, such as the price of substitutes and complements, consumer income, tastes, and expectations, along with demographics. It further explores the factors affecting the price elasticity of demand, including the availability of substitutes, income levels, and consumer preferences. Finally, the report discusses Coca-Cola's pricing strategy for Fresca, considering market competition and consumer purchasing power, with a focus on how the company aims to maintain an affordable price range and attract a broad customer base. The analysis concludes with a summary of the key findings and implications for Coca-Cola's business strategy.