Essay About  Price Discrimination And Coca-Cola’S New

Coca-Cola’s New Vending Machine – Essay – carter777
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Coca-Cola’s New Vending Machine
carter777
1. List arguments in favor of selling Coke through an interactive vending machine. Also list arguments against it.
Favor
 Nothing wrong with company trying to maximize profit while keeping its market share intact
 Also, the technology can be used to provide a fun experience for customers purchasing Coca Cola at their high tech vending machines
 Coca Cola can use the interactive vending machines without implementing the dynamic pricing strategy to increase their customer base and appeal to younger customer segment

 It is a good pricing strategy to induce variable pricing during off hours and service customers in need
 This technology can provide customer data relevant to their demand trends during a particular day/time and thus provide a platform for making marketing strategy

Against
 A customer might be in a time-sensitive situation and would not want to get involved in a conversation
 Variable pricing implementation through the interactive vending machine can lead to reduction in customer base
 Installation of this technology across vending machines could lead higher cost without much change in sales
 Brand switchers can shift to different cola brand if they feel they are being exploited by being charged higher based on climate or high demand
 Can lead to public outcry of the technology in case it doesn’t function as expected as was seen in the case of Microsoft AI chatbot which spurred racially insensitive statements

2. When, how, and for whom does this technology create value? Destroy value? Think about segments within the soft drink market while answering this question. [Hint: consider loyal Coke customers, switchers among cola products, loyal Pepsi customer, etc. while thinking about segments.]

Create Value
When
 The weather changes occur leading to increase or decrease in the consumption of Coca Cola
 The availability of the units is either high or low in the vending machines
 The partnership between Coke and other snack vendors to provide other complementary eatables at the vending machines
 While designing marketing campaigns targeting different customer segments
 Compete with other brands in terms of providing better customer experience through utilization of latest technology
 Price discrimination based on the weather and demand situations can lead to profit maximization
 Track the customer trends in terms of type and cost of coke preferred
 Coke can partner with retail chains to provide additional discounts based on the sale patterns and negotiate deals
 Target a particular customer segment like students, business executives and brand switchers with particular types of colas
For whom
 This technology creates value for Coke in terms of getting an insight into customer expense patterns
 Provide an opportunity to increase profits for Coke executives
 This technology creates values for different stakeholders in the situation like customers, Coca Cola executives, suppliers, retail chains etc.
Destroy Value
When
 A competitor can provide a cheaper option in type of colas and can pounce on the chance to hurt Coke’s brand image in the public opinion
 Dissatisfaction among customers if the price discrimination is introduced and could lead customers churning or switching to other cola brands like Pepsi

 Technology requires considerable amount of money for implementation and maintenance
 Loyal and long term Coca Cola customers might not like the change and prefer the “traditional” vending machines
 Competitors can reduce the prices temporarily to dampen the effect
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“Coca-Cola’s New Vending Machine” EssaysForStudent.com. 03 2017. 2017. 03 2017 < "Coca-Cola’s New Vending Machine." EssaysForStudent.com. EssaysForStudent.com, 03 2017. Web. 03 2017. < "Coca-Cola’s New Vending Machine." EssaysForStudent.com. 03, 2017. Accessed 03, 2017. Essay Preview By: carter777 Submitted: March 6, 2017 Essay Length: 1,006 Words / 5 Pages Paper type: Essay Views: 477 Report this essay Tweet Related Essays Coca-Cola and It's Evolution The Coca-Cola company started out as an insignificant one man business and over the last one hundred and ten years it has grown into one 2,129 Words  |  9 Pages Coca Cola Vending Machines Scott Morrow MGT 531 Case #1 1/31/08 Coca-Cola's New Vending Machine Statement of Problem Coca Cola, the world's largest beverage company, has been under a 871 Words  |  4 Pages Coca-Cola New Vending Machine 1. ¿Vender Coca-Cola a través de una máquina es una buena idea o no? ¿Por qué? Coca-Cola se plantea una novedosa herramienta con el objetivo 1,668 Words  |  7 Pages Coca Cola's New Vending Machine Coca Cola New Vending Machine – Pricing Discrimination Rohan Mondkar (IBM – 480) 1. Case Summary: In October 1999, Coca Cola was reported to be 1,061 Words  |  5 Pages Similar Topics Henry fayol 5 rules of management coca cola care Coca Cola Overview Get Access to 89,000+ Essays and Term Papers Join 209,000+ Other Students High Quality Essays and Documents Sign up © 2008–2020 EssaysForStudent.comFree Essays, Book Reports, Term Papers and Research Papers Essays Sign up Sign in Contact us Site Map Privacy Policy Terms of Service Facebook Twitter