Essay title: Pricing Forecast
According to “The Economist” the forecast price jumped from 8 to 15 percent, increasing from $1.09 to as much as between $1.19 and $1.25 (Leith, 2004),growth has jumped to 35%. Within the non-alcoholic beverage industry, Coca-Cola has strong competition from PepsiCo and Cadbury-Schweppes. Strategic pricing of products can have a big impact on sales revenue growth. If Coca-Cola increases its prices while managing to maintain unit sales volume, then its sale revenue will grow. Alternately, higher prices can lead to fewer units sold if customers turn to less expensive alternatives from its competitors.
The price is somewhat elastic, when determine in judging the elasticity is the number of substitutes, Cola-Coca is doing a excellent job in making their product readily accessible to consumer. While there as quite a few competitors for example Coke has Pepsi and RC Cola, Diet Coke has Diet Pepsi and Diet Rite, Sprite has Sierra Mist and 7UP, Minute Maid orange juice has Tropicana orange juice, and Dasani has Aquafina Coca-Cola is everywhere.
Another basic determinant is personal income measures an individuals total amount of wages, interest