Cocacola- Open Happiness
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Transcript of Cocacola- Open Happiness
Pricing Strategy of
Ultimate Bottom line Affordable Enjoyment of Life
Different pricing strategies for different countries
Market Penetration Pricing Policy
Promotional Pricing Policy
Pricing Strategy of
• Lower penetrating price for new sensitive market
Objective :
Face the competitors
Raise brand awareness
Reposition itself as a premium brand after successful penetration.
Pricing Strategy of
Promotional Pricing • Offers promotional pricing frequently through:
Quantity discount
Cash discount
Objective:
Boost sales
Example: During Ramadan, Coca Cola reduces its rates up to 5 Tk on 1.5 liter bottle.
Brand Equity
Visibility- Bottle & Logo
Loyalty- Nothing but Cocacola
Trust and Perceived Quality
Brand Association- Happiness
Financial Forecast2013 2012 2011 2010 2009
Revenue 46,854 48,017 46,542 35,119 30,990
COGS (18,421) (19,053) (18,215) (12,693) (11,088)Gross Profit 28,433 28,964 28,327 22,426 19,902
Operating Expanses (18,205) (18,185) (18,174) (13,977) (11,671)
Operating Profit 10,228 10,779 10,153 8,449 8,231
Interest income 534 471 483 317 249
Equity Income (Loss) 602 819 690 1,025 781
Other Income (Loss) 576 137 529 5,185 40
EBIT 11,940 12,206 11,855 14,976 9,301
Interest expanse (463) (397) (417) (733) (355)
EBT 11,477 11,809 11,438 14,243 8,946
Tax (2,851) (2,723) (2,812) (2,384) (2,040)
Net income 8,626 9,086 8,626 11,859 6,906
Growth in net profit (0.05) 0.05 (0.27) 0.72
Average Growth 0.11
* The figu
res are in M
illion
s $
Financial Forecast
2013 2014 2015 2016 2017 2018 2019 2020
Projected Income 8,626 9,591 10,663 11,855 13,181 14,655 16,294 18,116
* The figures are in Millions $