Marketing Management - Assignment Example

Marketing Strategy The war between coca-cola and PepsiCo is not only focused on marketing strategies’ but it is also deep into thepricing strategies; however, the price difference between PepsiCo and coca-cola is not that large. Coca-cola in its price strategy increased the price of their brand in the 1st Quarter; however, there are no plans to increase the prices in the near future in the 2nd Quarter of this financial year. The increase in prices is mainly focused on the developing countries around geographical regions that are not accessible.

The rise in the prices in these regions is to see to it that the company caters for the extra cost of transportation. The company also plans to raise the prices of the brand in the future to cater for the rising price of raw material used in the production of the beverage (New, 2011). The company in an effort increase the pricing is also cautious about the effect of the rise on the volume of their sales. There is a probability of reducing the volume of sales when compared to the previous years.

The company also faces the problem of their customers switching to the competitors soft drink. In view of all this, the company carefully looks at the probable way of raising the price without affecting their volume of sales (New, 2011). The coca cola company employs the two channels of distribution the direct market channelling which involves dealing directly with the customer. This direct marketing channel can also have intermediaries who are the wholesalers and retailers. The other channel is the business distribution channels the organisation utilises its own sales group to sell to business customers.

This does involve multilevel distribution. This is the most commonly used procedure by the coca-cola company (MKT300, 2008). The business distribution channels consist of manufactures representatives and industrial distributors as the intermediaries. The manufactures in the direct marketing ensure that consumers get the soft drinks in time. They sell to the consumer in bulk or retail amounts and at an affair price. The retailers also ensure that consumers get the goods they usually sell in small quantities and a higher price than the manufacturers.

In the business, distribution channels the manufactures representatives do sell in bulk to the industrial distributors or the Industrial customer. The distribution channels ensure that the goods reach the customer on time and in the right manner (Coca-Cola Company, 2008). Company’s monitor their channel performance to be able to plan. The channel performance is measure considering the customer reach, the operating efficiency and the service quality. The effectiveness of a channel is realized when the goods, or services are provided at a reasonable yet profitable price.

The channels ensure that the consumers get the goods at the shortest time possible. In examining the quality of service, the coca cola company have improved this by offering after sale service to the coke refrigerators. The coca cola company also offers training on investment in infrastructure to members of their teams. The productivity of the coca-cola company is determined through the sales volumes made per call made. The productivity of the company’s vehicles is measured in terms of the number of outlets covered.

The company also looks at the customer reach. The best channel does give a large coverage of the customers. The company does measure the effectively of a channel if the company enjoys a high volume of sales made form the best distribution channel.ReferencesCoca-cola Company. (2008). Satisfying your needs. Retrieved April 14, 2012, from CoCa-ColaCompany: http://www.slideshare.net/dgclip1981/the-coca-cola-companyMKT 300. (2008, October 08). The Coca cola company. Retrieved April 14, 2012, fromSideSharenet: http://www.

slideshare.net/dgclip1981/the-coca-cola-companyNew, C. (2011, August 17). Should Coca-Cola Raise Its Prices. Retrieved April 15, 2012, fromDailyFinance: http://www.dailyfinance.com/2011/08/17/should-coca-cola-raise-its- (prices/