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Coca-Cola is focusing on pricing, tiering, and pack size to demonstrate value for consumers as inflation remains an issue globally.
According to chairman and CEO James Quincey during a recent Q3 2022 earnings call, the inflation’s impact is being felt now that the summer is over and schools are back in session.
Quincey explained that their focus is on leveraging revenue growth management and the price, pack, and promo architectures to maximize affordability.
Coca-Cola’s pricing strategies can provide a blueprint for other brands.
He explained that consumer behavior in a recession is to try to reduce the dollar outlay of the basket, making the price point even more important than the price per liter. Thus, Coca-Cola is pursuing a global strategy of having smaller bottles or smaller multipacks.
As an example, he noted that Coca-Cola recently launched a 350ml PET bottle in Japan to meet changing consumer trends.
Quincey also explained that the company has leveraged its capabilities with returnable bottles, particularly in developing markets, as a way of generating a lower price point.
