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.
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?