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Coca Colas New Vending Machine A Pricing to Capture Value or Not Case Solution

Case ID: 500068
Solution ID: 31202

Words: 1330

Price: $45

Case Solution

Chairman and CEO M. Douglas Ivester hesitates as he tells a Brazilian newsmagazine about a novel Coke vending machine that couldmechanically increase prices in warm weather. This is met by a fast and an adverse reaction globally.

Excel Calculations

Questions Covered

Is selling Coke through interactive vending machines a good or bad idea? Why?

What is Coke? What does Coke mean to the average consumer?

Where, how and for whom does this technology create/destroy value?For example, loyal Coke customers, switchers amongst cola products, loyal Pepsi customers, etc?

Are there any pricing related issues that can adversely affect the firm?

What did Coca-Cola do right? What did it do wrong? How would you have done it?

What is price discrimination and when does it work?