ipl-logo

Coca Cola Demand Curve

1041 Words5 Pages

DEMAND CURVE Demand is defined as the different quantities people are willing to buy at different prices. As the price of good increases the demand decreases and vice versa. The law of demand states shows an inverse relationship between price and quantity demanded. The demand curve shows the relationship between the quantity of a good a consumer is willing to buy and the price of the good. The equation for that shows the relationship between the quantity demanded and price is as given below: QD = f (P) QD : Quantity demanded P : Price of the commodity. The demand for coca cola as any normal good is downward slopping from left to right which shows the inverse relationship between the price and quantity demanded. The lower the price of Coca …show more content…

THE NUMBER AND PRICE OF COMPLEMENTARY GOODS: Coca cola is generally served at KFC and McDonald’s, increase in the price of these complimentary goods causes a decrease in the demand of Coca Cola. Hence we can say that there is an inverse relationship between the complementary goods price and demand for Coke. 4. CONSUMER TASTES AND PREFERENCES The more a product is found desirable the more likely will the person buy it. Effective advertising and positioning attracts customers. The brand equity of Coca cola is very high and it has established an emotional connect with consumers. Coca Colas brand slogan “Open happiness” has successfully positioned the brand as a global icon of happiness. Such connects are very important in order to persuade a consumer into buying the brand. 5. TIME The demand for Coca Cola increases during festivals like Diwali and Christmas. Coca Cola the brand is positioned as a universal icon of happiness and hence a more preferred brand during festivals SUPPLY CURVE Supply is defined as the quantity a producer will supply at a given price. A supply curve shows the relationship between the price and the quantity supplied. The law of supply says that “ as price of a good increases the quantity supplied increases”. There is a positive relationship between the price and quantity …show more content…

DETERMINANTS OF SUPPLY CURVE 1. COST OF PRODUCTION: An increase in the cost of inputs of production such as sugar, caffeine and colors causes an increase in the cost of production. This means that an increase in cost will cause the supplier less willing to supply at a given rate. An increase in cost resulting from shortage of ingredients or disruption of supply is one of the common reasons why the suppliers cannot supply the product at a given price thus shifting the supply curve from S1 to S2.Adverse climatic fluctuations results in low productivity of agriculture which in turn affects Coca Cola. 2. TECHNOLOGY: Automation is led way to decrease in the cost of production. Techniques to optimize production means the suppliers will supply more at a lesser rate. Coca cola recently implemented the Siemens automation to increase the capacity of its bottling plants. This ensures that the capacity of the plants increased manifolds and thus lowering the cost of production. Technology and optimization ensures that the supply curve moves towards the left. 3. NUMBER OF

Show More
Related
697 Words | 3 Pages

Currently, the cars manufactured involve automated as well as manual processes of production. The overhead costing

Read More
890 Words | 4 Pages

Microeconomics ECON212 -1504B-01 Instructor: Joseph Parisi Unit 2- Elasticity Amanda Kranning November 2015 In the laws of economics, when the price of an item goes up, the quantity of demand will decline. Elasticity becomes an integrant part by determining the response of this occurrence. The measurement in change in the quantity demanded in response to change in price is call elasticity for demand.

Read More
547 Words | 3 Pages

Price elasticity of supply can have multiple effects on a market based on the amount of time needed to react to a price change. There are 3 time categories to describe how mush the

Read More
946 Words | 4 Pages

Demand Curve- The graphical representation of the law of demand. Law of Demand- A law stating that as the price of a good increases, the quantity demanded of the good decreases, and that as the price of a good decreases, the quantity demanded of the good increases.

Read More
149 Words | 1 Pages

In Costco’s macro-environment, a variety of factors could affect the company’s economic viability. External factors such as inflation, foreign currency exchange rates, levels of unemployment, reduced consumer confidence, and changes in tax policies could unfavorably affect the demand for Costco’s products and services. Prices of some goods and services including food products, are often variant and subject to fluctuations deriving from changes in domestic and foreign supply and demand, competition, taxes, labor costs, or delays in delivery which could significantly affect Costco’s sales. Therefore, the product’s costs and selling could also increase affecting financial results. Other important economic factors include the increasing international

Read More
974 Words | 4 Pages

Secondly, the other result of this graph is if the price goes down like for an example in a sale the demand for that product will sky rocket and the supply will drop resulting in a shortage. As you can tell this is a huge advantage to a society. Supply and demand is a massive advantage of shifting

Read More
476 Words | 2 Pages

Coca-Cola has been around for over to her New Year's, starting in 1888. This beverage has been an American favorite since it came out. This shows that even though Coke has a lot of quantity they still deliver at continuous quantity (World of Coca-Cola). How did Coca-Cola appeal to its consumers? Out of logos pathos and ethos Coke showed using more pathos when advertising their product with examples of their open happiness and the snow bear commercials.

Read More
547 Words | 3 Pages

In this advertisement, Coca Cola puts an emphasis on community. The teenagers in the image are all smiling together for the photo the man is taking, which implies that they all are friends. This image reinforces the idea that America is a perfect place and implies that America is a welcoming and friendly community, and that everyone in the United States is accepted by each other. By placing Coca-Cola’s cups and glass bottles in its own advertisements, Coca-Cola has established itself as a part of the happy lives Americans live. So when we think of what lured many to come to the United States, we picture a garden bordered by a white picket fence, or a sandy beach packed with people, or even a soda bar.

Read More
1249 Words | 5 Pages

This can be considered a negative impact on both companies as due to the similarity in their products, price wars are often triggered as consumers will tend to purchase the cheap option. With lowering the prices both PepsiCo and Coca-Cola are losing potential sale revenues and thus profits. Once the price wars come to a stand still, the businesses look for alternative marketing strategies to get an upperhand, such as products. To respond to this rivalry, PepsiCo has recently expanded their beverage

Read More
1631 Words | 7 Pages

Age and life cycle can be tricky variables because there are different needs and wants as accord to the age of a person. The main sector in which Coca-Cola Company targets is the youth because there is a much need of refreshment and energizers to cope up with their daily activities. Gender is also an issue needed to be given prior by Coca-Cola. Men and women tend to have different attitudinal and behavioral orientations, based partly on genetic makeup and partly on socialization practices. Coca Cola targets both genders with its wide variety of drinks.

Read More
1125 Words | 5 Pages

Ninety-four percent of the earth’s population recognizes the Coca-Cola logo. That’s not an easy feat to accomplish, especially as a company that primarily sells soft drinks. A major reason why Coke is such a successful company is their advertising. In the commercial titled Brotherly Love, Coca-Cola uses calm music, warm lighting, and a humorous story to associate their products with happy memories in the minds of young people with one or more siblings.

Read More
1025 Words | 5 Pages

Place of consumption: Coca Cola sections the market on the premise of the place of utilization of the refreshment. The greater part of the utilization happens on introduce, for example, films, railroad station, eateries and so forth, while rest of it happens in homes. Product type: Coca Cola sections the market on the premise of the sort of items purchased by clients. The market is isolated into Cola items and non-cola items. Cola items at present give greater part of the incomes, however the extent of non-cola items is expanding.

Read More
1101 Words | 5 Pages

Hence, we can say that these 2 players are involved in a non-cooperative game, the objective being to garner the most profit, and capturing market share being the most effective way to do so. Since Coke and Pepsi are perfect substitutes, the price elasticity of demand should be perfect elastic. However, there are some factors that results in a fairly elastic demand. When Coke increases its price, most of its customers that are highly sensitive to price changes will switch to Pepsi due to the similarity of the taste. Nevertheless, some of its customers that are highly loyal are willing to pay more for Coke

Read More
7179 Words | 29 Pages

EXECUTIVE SUMMARY Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers.

Read More
785 Words | 4 Pages

This aims at developing a deeper consumer desire for the brand, thus giving people more reason to purchase Coke- Cola products instead of competing brands. This is the essence of differentiation. Coca-Cola having an 'action orientation', instead of waiting for change to happen it is at the leading edge, driving action forward. This product differentiation strategy has created global value, brand loyalty, non-price competitor as well as no perceived

Read More

More about Coca Cola Demand Curve

Open Document