Another little tidbit of information that might explain Coke's reluctance to raise their price was Pepsi Cola.
At one point, short of money and market, Pepsi got hold of a bunch of 12 ounce bottles at a nice discount. They decided to use them and make it part of their marketing: "Pepsi Cola hits the spot 12 ounces that's a lot..." Pepsi then seized that part of the market as that was looking for a bargain cola.
This would make me thing that for many years Coke also felt the price pressure of Pepsi. They could claim quality and hence a smaller serving (6 ounces), but could not go higher for fear of driving more cost-conscious consumers to Pepsi.
Of course, it didn't all go Pepsi's way either. After the depression and WWII Pepsi was dogged for many years with the perception of being a low cost, poorer substitute for Coke, and had to work to build brand loyalty based on taste and image.
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Another little tidbit of information that might explain Coke's reluctance to raise their price was Pepsi Cola.
At one point, short of money and market, Pepsi got hold of a bunch of 12 ounce bottles at a nice discount. They decided to use them and make it part of their marketing: "Pepsi Cola hits the spot 12 ounces that's a lot..." Pepsi then seized that part of the market as that was looking for a bargain cola.
This would make me thing that for many years Coke also felt the price pressure of Pepsi. They could claim quality and hence a smaller serving (6 ounces), but could not go higher for fear of driving more cost-conscious consumers to Pepsi.
Of course, it didn't all go Pepsi's way either. After the depression and WWII Pepsi was dogged for many years with the perception of being a low cost, poorer substitute for Coke, and had to work to build brand loyalty based on taste and image.
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