Pricing and Retail Strategy

Pricing and Retail Strategy
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The continued development in the twenty-first century has significantly impacted marketing strategies of different companies. Most companies today involve many pricing and retail strategies so as to survive in the war for the market. It is not a blood war, but a war for the customers, and every company fights to retain a big portion of the market, but the technology has been noted as a core pillar across the companies. Technology is transforming the nature of products, processes, companies, industries, and even competition itself (Porter, 1985) Considering a business like coke-cola that has existed for many centuries with an up standard of competitive advantage, it’s vital to analysis its pricing strategies. Coke-cola as a company having started in the early 1880’s it has faced considerable competition from companies like Pepsi-cola and other related beverage producing companies. (Senker & Foy, 2012). However, coca-cola has kept its standards of production and supply of its commodities to its customers because of a stiff competition. It is, therefore, confident to say that Coca-cola is one the companies with sustained competitive advantage. Coke as a corporation uses different retailing and pricing strategies to enjoy credit from its consumers. From El examination on recent research done in the retail market, on various business intuitions, coca-cola encompasses 70% of the market compared to other beverage companies.

(El, H. S.,2014)
Today coca-cola is trying very hard to keep its stock super standard. It is so because coke involves very many different competitive strategies to compete out other companies. For instance, it has required sturdy research and innovation. Coke is one of the leading industries with reverence to strong research and innovation. Research has made coke realize the wants for its customers thus adjusting production to fit the customers taste.(Senker & Foy, 2012). Coke also tries as much as possible to create profound brand popularity through creating other forms of names. Branding is also recognized as one of the retail and pricing strategies. In such a case, Coke has diversified its production by establishing other brands like Fanta, Sprite, and Novida. Branding as a retail strategy offers customers a wide choice to make while buying commodities from a given company. Coke would, therefore, enjoy a variety of options for clients who buy its products. (Kim, et al. 2007)
However, in the recent market situation, it is certain for coke to enjoy a sustained competitive advantage it offers goods and products at low prices. Coke is also one of the most capitalized business institutions in the world through low pricing strategy. Cheap pricing policies attract low-income earners to buy commodities of their interest at low prices. Today Coke uses four principles in their marketing plan; the first being choice that guarantees consumers a wide range of beverages. The different drinks are made up of a variety of the balanced diet to suit customers. (Kim, et al. 2007).Everyone has a choice to make some could choose on a mango minute maid whereas others would choose apple minute maid. Secondly the company should also encourage balance in the consumption of their products. Sensible consumption of sugar beverages moderates diabetic effects involved in the consumption of such goods. Coke also requires transparency and honesty in marketing of their products. Honesty is involved customers are guaranteed of quality services and thus buying more and more services from the company. It is one way to price commodities by being honest with your clients so that they grow much interest in buying products from the enterprise. Another significant way to earn a wider market is by listening to your customers. Coke takes suggestions from its customers to develop its output. (Senker and Foy, 2012).
In conclusion, it is significant to note that it is not easy to maintain sustained competitive advantage because it involves very many retailing and pricing strategies. However, Coke has tried as much as possible to improve its market situation day by day. Today Coca-cola has considerably improved its market distribution strategy. For instance, it sells its commodities to other operators like the bottling and canning distributors and even fountain retailers thus making coca-cola gain a full coverage. Coke’s system of distributing its products is very elegant. It is one of the most successful distribution networks compared to other companies in the same category.
References:
El, H. S. (2014). EDLP versus hi-lo pricing strategies in retailing: Literature review and empirical examinations in the German retail market.
Kim, Y.-K, Forney, J. A., & Sullivan, P. (2007). Experiential retailing: Concepts and strategies that sell. New York: Fairchild.
Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. New York: Free Press.
Senker, C., & Foy, D. (2012). Coca Cola: The story behind the iconic business. London: Wayland.