Coca Colas New Vending Machine A Pricing to Capture Value or Not Case Solution

Case Solution

Chairman and CEO M. Douglas Ivester stumbles because he notifies a Brazilian news magazine of a new Coke snack machine that could instantly raise prices in the sunshine. Reaction around the globe is fast and negative. Teaching Purpose: Allows look for value prices, justness, price discrimination, brand equity, awesome product, communications, and web marketing strategy in the global setting.

Excel Calculations

Questions Covered

Is selling Coke through interactive vending machines a good or bad idea? Why?

What is Coke? What does Coke mean to the average consumer?

Where, how and for whom does this technology create/destroy value?For example, loyal Coke customers, switchers amongst cola products, loyal Pepsi customers, etc?

Are there any pricing related issues that can adversely affect the firm?

What did Coca-Cola do right? What did it do wrong? How would you have done it?

What is price discrimination and when does it work?