SLP for the Coca Cola Company - Assignment Example

SLP for the Coca Cola Company SLP for the Coca Cola Company Different companies contain a lot of information regarding the way that they operate. However, most of them are considered to be private since they are the ones that contribute to the unique and special operations of the business. In this way they are the ones that lead to the competitive position and advantage that can be experienced by the company. In order to perform appropriate SLPs for a particular organization, these kinds of information are highly necessary.

They include the rate and mode of pricing although very few of these companies will admit the kind of strategy that they use in their pricing. Because of this, it is vital to conduct necessary research to ensure that all the proper details are collected during SLP. From the information that is provided by the Coca cola Company, they believe that among all its competitors, they are the ones that provide the lowest prices to their customers. However, in real sense, the pricing strategy for this company is such that they depend on the cost of production and thus the overall quality of their products.

This is mainly because, the major competitors of this company offer lower prices as their pricing. This is in the effort to gain entry into a market that is already dominated by the company. In relation to the pricing of companies that offer similar products, which in this case are soft drinks and beverages, they all seem to set their prices depending on the quantity of the product. There appears to be no diversity in pricing when it comes to the flavor used for similar goods. This is opposed to other beverage companies that tend to set their prices depending on the type of flavoring that is used in the product.

In this sense, the cost of an orange, passion, blackcurrant or cola drink is the same as long as they are all of the same quantity. In this case, there is an increase in process as the quantity of the beverage increases. Nonetheless, the more the quantity the lower the price is likely to be. However, the prices of the other companies are slightly lower even for drinks that have a higher quantity level. This can be considered a fact since the other competitors are making efforts to beat the competition that has been in the soft drink industry for a long time.

It has been maintained by the Coca Cola Company. In my opinion, the company is not basing its pricing on the cost-plus basis. Instead, it is mainly dependent on customer loyalty and the fact that it has managed to maintain the high level of competition for a longer time than its competitors. It also sets the higher prices with the knowledge that it produces one of the best qualities in the market. For this reason, as is indicated by D’Antonio, the company works on prestige pricing (2012). Besides, there are also other pricing strategies that the company uses.

These are suggested by D’Antonio (2012) and Parley (2006). From the lecture notes, although the Coca Cola Company does not go beyond the set premium, it still manages to emerge top in competition above the other competitors despite the higher prices. This is because of its focus on the value of the product. References D’Antonio, H. (2012). Pricing Strategies. New York: Barnes & Noble. Lecture notes. (2015).Pricing strategies series. Film .